New York | 13-1514814 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
437 Madison Avenue, New York, New York | 10022 |
(Address of principal executive offices) | (Zip Code) |
Yes þ | No o |
Yes þ | No o |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Yes o | No þ |
Page | ||
PART I. | FINANCIAL INFORMATION | |
Item 1. | ||
Consolidated Balance Sheets - June 30, 2016 and December 31, 2015 | ||
Consolidated Statements of Income - Three and six months ended June 30, 2016 and 2015 | ||
Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2016 and 2015 | ||
Consolidated Statements of Cash Flows - Six months ended June 30, 2016 and 2015 | ||
Notes to Consolidated Financial Statements | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | OTHER INFORMATION | |
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
SIGNATURES |
June 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,305.7 | $ | 2,605.2 | |||
Short-term investments, at cost | 231.0 | 14.5 | |||||
Accounts receivable, net of allowance for doubtful accounts of $22.2 and $22.5 | 6,422.6 | 7,220.9 | |||||
Work in process | 1,365.1 | 1,122.7 | |||||
Other current assets | 989.8 | 1,017.2 | |||||
Total Current Assets | 10,314.2 | 11,980.5 | |||||
Property and Equipment at cost, less accumulated depreciation of $1,234.8 and $1,206.6 | 683.4 | 692.7 | |||||
Equity Method Investments | 137.5 | 136.6 | |||||
Goodwill | 9,068.4 | 8,676.4 | |||||
Intangible Assets, net of accumulated amortization of $743.0 and $680.7 | 457.4 | 344.8 | |||||
Other Assets | 274.3 | 279.7 | |||||
TOTAL ASSETS | $ | 20,935.2 | $ | 22,110.7 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 8,507.0 | $ | 9,812.0 | |||
Customer advances | 1,163.1 | 1,283.5 | |||||
Current portion of debt | 0.2 | 1,001.4 | |||||
Short-term debt | 11.5 | 5.2 | |||||
Taxes payable | 155.6 | 319.1 | |||||
Other current liabilities | 1,703.4 | 1,798.4 | |||||
Total Current Liabilities | 11,540.8 | 14,219.6 | |||||
Long-Term Debt | 5,022.2 | 3,564.2 | |||||
Long-Term Liabilities | 822.3 | 800.5 | |||||
Long-Term Deferred Tax Liabilities | 553.0 | 469.1 | |||||
Commitments and Contingent Liabilities (See Note 10) | |||||||
Temporary Equity - Redeemable Noncontrolling Interests | 223.8 | 167.9 | |||||
Equity: | |||||||
Shareholders’ Equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 59.6 | 59.6 | |||||
Additional paid-in capital | 794.5 | 859.9 | |||||
Retained earnings | 10,470.7 | 10,178.2 | |||||
Accumulated other comprehensive income (loss) | (1,061.5 | ) | (1,015.4 | ) | |||
Treasury stock, at cost | (7,981.4 | ) | (7,629.9 | ) | |||
Total Shareholders’ Equity | 2,281.9 | 2,452.4 | |||||
Noncontrolling interests | 491.2 | 437.0 | |||||
Total Equity | 2,773.1 | 2,889.4 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 20,935.2 | $ | 22,110.7 |
Three Months Ended June 30, | Six Months Ended June, 30 | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue | $ | 3,884.9 | $ | 3,805.3 | $ | 7,384.0 | $ | 7,274.5 | |||||||
Operating Expenses: | |||||||||||||||
Salary and service costs | 2,824.6 | 2,762.9 | 5,449.2 | 5,360.0 | |||||||||||
Occupancy and other costs | 314.6 | 321.0 | 614.7 | 639.0 | |||||||||||
Cost of services | 3,139.2 | 3,083.9 | 6,063.9 | 5,999.0 | |||||||||||
Selling, general and administrative expenses | 110.9 | 110.1 | 219.0 | 212.2 | |||||||||||
Depreciation and amortization | 73.0 | 72.7 | 147.2 | 147.0 | |||||||||||
3,323.1 | 3,266.7 | 6,430.1 | 6,358.2 | ||||||||||||
Operating Income | 561.8 | 538.6 | 953.9 | 916.3 | |||||||||||
Interest Expense | 54.3 | 44.7 | 104.6 | 88.4 | |||||||||||
Interest Income | 9.5 | 10.1 | 19.7 | 19.6 | |||||||||||
Income Before Income Taxes and Income From Equity Method Investments | 517.0 | 504.0 | 869.0 | 847.5 | |||||||||||
Income Tax Expense | 167.9 | 165.3 | 283.4 | 278.0 | |||||||||||
Income From Equity Method Investments | 2.8 | 4.0 | 2.6 | 3.0 | |||||||||||
Net Income | 351.9 | 342.7 | 588.2 | 572.5 | |||||||||||
Net Income Attributed To Noncontrolling Interests | 25.8 | 28.8 | 43.7 | 49.5 | |||||||||||
Net Income - Omnicom Group Inc. | $ | 326.1 | $ | 313.9 | $ | 544.5 | $ | 523.0 | |||||||
Net Income Per Share - Omnicom Group Inc.: | |||||||||||||||
Basic | $ | 1.36 | $ | 1.27 | $ | 2.26 | $ | 2.10 | |||||||
Diluted | $ | 1.36 | $ | 1.26 | $ | 2.25 | $ | 2.09 | |||||||
Dividends Declared Per Common Share | $ | 0.55 | $ | 0.50 | $ | 1.05 | $ | 1.00 |
Three Months Ended June 30, | Six Months Ended June, 30 | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Income | $ | 351.9 | $ | 342.7 | $ | 588.2 | $ | 572.5 | |||||||
Gain (loss) on forward-starting interest rate swap, net of income taxes of $0.5 and $16.4 for the three months and ($19.9) and $14.6 for the six months ended June 30, 2016 and 2015, respectively | 0.7 | 23.0 | (27.8 | ) | 20.5 | ||||||||||
Unrealized gain on available-for-sale securities, net of income taxes of $0.1 for the six months ended June 30, 2015 | — | — | — | 0.2 | |||||||||||
Foreign currency translation adjustment, net of income taxes of ($61.0) and $81.5 for the three months and ($2.8) and ($94.3) for the six months ended June 30, 2016 and 2015, respectively | (118.3 | ) | 158.2 | (5.2 | ) | (183.1 | ) | ||||||||
Defined benefit pension and postemployment plans adjustment, net of income taxes of $1.2 and $1.5 for the three months and $2.4 and $3.0 for the six months ended June 30, 2016 and 2015, respectively | 1.8 | 2.2 | 4.1 | 4.4 | |||||||||||
Other Comprehensive Income (Loss) | (115.8 | ) | 183.4 | (28.9 | ) | (158.0 | ) | ||||||||
Comprehensive Income | 236.1 | 526.1 | 559.3 | 414.5 | |||||||||||
Comprehensive Income Attributed to Noncontrolling Interests | 22.2 | 34.7 | 60.9 | 32.5 | |||||||||||
Comprehensive Income - Omnicom Group Inc. | $ | 213.9 | $ | 491.4 | $ | 498.4 | $ | 382.0 |
Six Months Ended June, 30 | |||||||
2016 | 2015 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 588.2 | $ | 572.5 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation | 90.4 | 92.5 | |||||
Amortization of intangible assets | 56.8 | 54.5 | |||||
Amortization of net deferred gain from settlement of interest rate swaps | (8.9 | ) | (3.6 | ) | |||
Share-based compensation | 46.3 | 49.3 | |||||
Excess tax benefit from share-based compensation | (13.4 | ) | (14.3 | ) | |||
Deferred gain from settlement of interest rate swap | 54.2 | — | |||||
Deferred loss from settlement of forward-starting interest rate swap | (54.5 | ) | — | ||||
Other, net | (23.3 | ) | 5.9 | ||||
Change in operating capital | (1,126.9 | ) | (808.8 | ) | |||
Net Cash Used in Operating Activities | (391.1 | ) | (52.0 | ) | |||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (77.9 | ) | (106.7 | ) | |||
Acquisition of businesses and interests in affiliates, net of cash acquired | (267.0 | ) | (25.0 | ) | |||
Sale (purchase) of short-term investments | (215.3 | ) | 9.3 | ||||
Net Cash Used in Investing Activities | (560.2 | ) | (122.4 | ) | |||
Cash Flows from Financing Activities: | |||||||
Change in short-term debt | (13.3 | ) | 1.1 | ||||
Proceeds from borrowings | 1,389.6 | — | |||||
Repayment of debt | (1,000.0 | ) | — | ||||
Dividends paid to common shareholders | (242.9 | ) | (250.5 | ) | |||
Repurchases of common stock | (383.5 | ) | (406.6 | ) | |||
Proceeds from stock plans | 18.4 | 6.0 | |||||
Acquisition of additional noncontrolling interests | (44.6 | ) | (6.9 | ) | |||
Dividends paid to noncontrolling interest shareholders | (52.0 | ) | (61.1 | ) | |||
Payment of contingent purchase price obligations | (48.1 | ) | (42.3 | ) | |||
Excess tax benefit from share-based compensation | 13.4 | 14.3 | |||||
Other, net | (34.3 | ) | (19.9 | ) | |||
Net Cash Used in Financing Activities | (397.3 | ) | (765.9 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | 49.1 | (91.8 | ) | ||||
Net Decrease in Cash and Cash Equivalents | (1,299.5 | ) | (1,032.1 | ) | |||
Cash and Cash Equivalents at the Beginning of Period | 2,605.2 | 2,388.1 | |||||
Cash and Cash Equivalents at the End of Period | $ | 1,305.7 | $ | 1,356.0 |
Three Months Ended June 30, | Six Months Ended June, 30 | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Income Available for Common Shares: | |||||||||||||||
Net income - Omnicom Group Inc. | $ | 326.1 | $ | 313.9 | $ | 544.5 | $ | 523.0 | |||||||
Net income allocated to participating securities | (2.0 | ) | (3.9 | ) | (3.6 | ) | (6.7 | ) | |||||||
$ | 324.1 | $ | 310.0 | $ | 540.9 | $ | 516.3 | ||||||||
Weighted Average Shares: | |||||||||||||||
Basic | 237.7 | 244.5 | 238.9 | 245.5 | |||||||||||
Dilutive stock options and restricted shares | 1.3 | 1.2 | 1.2 | 1.1 | |||||||||||
Diluted | 239.0 | 245.7 | 240.1 | 246.6 | |||||||||||
Anti-dilutive stock options and restricted shares | — | 0.1 | — | 0.1 | |||||||||||
Net Income per Common Share - Omnicom Group Inc.: | |||||||||||||||
Basic | $ | 1.36 | $ | 1.27 | $ | 2.26 | $ | 2.10 | |||||||
Diluted | $ | 1.36 | $ | 1.26 | $ | 2.25 | $ | 2.09 |
2016 | 2015 | ||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||
Goodwill | $ | 9,590.7 | $ | (522.3 | ) | $ | 9,068.4 | $ | 9,205.7 | $ | (529.3 | ) | $ | 8,676.4 | |||||||||
Intangible assets: | |||||||||||||||||||||||
Purchased and internally developed software | $ | 335.9 | $ | (265.6 | ) | $ | 70.3 | $ | 310.5 | $ | (239.9 | ) | $ | 70.6 | |||||||||
Customer related and other | 864.5 | (477.4 | ) | 387.1 | 715.0 | (440.8 | ) | 274.2 | |||||||||||||||
$ | 1,200.4 | $ | (743.0 | ) | $ | 457.4 | $ | 1,025.5 | $ | (680.7 | ) | $ | 344.8 |
2016 | 2015 | ||||||
January 1 | $ | 8,676.4 | $ | 8,822.2 | |||
Acquisitions | 223.3 | 15.1 | |||||
Noncontrolling interests in acquired businesses | 54.6 | 3.3 | |||||
Contingent purchase price of acquired businesses | 146.4 | 49.8 | |||||
Foreign currency translation and other | (32.3 | ) | (124.4 | ) | |||
June 30 | $ | 9,068.4 | $ | 8,766.0 |
2016 | 2015 | ||||||
Credit Facility | $ | 2,500.0 | $ | 2,500.0 | |||
Uncommitted credit lines | 1,164.3 | 1,157.7 | |||||
Available and unused credit lines | $ | 3,664.3 | $ | 3,657.7 |
2016 | 2015 | ||||||
5.9% Senior Notes due 2016 | $ | — | $ | 1,000.0 | |||
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 | — | |||||
Other debt | 0.2 | 0.3 | |||||
4,900.2 | 4,500.3 | ||||||
Unamortized premium (discount) on senior notes, net | 8.3 | 10.1 | |||||
Debt issuance costs | (26.0 | ) | (16.9 | ) | |||
Adjustment to carrying value for interest rate swaps | 139.9 | 72.1 | |||||
5,022.4 | 4,565.6 | ||||||
Current portion | (0.2 | ) | (1,001.4 | ) | |||
Long-term debt | $ | 5,022.2 | $ | 3,564.2 |
Americas | EMEA | Asia Pacific | |||||||||
2016 | |||||||||||
Revenue - Three months ended | $ | 2,428.6 | $ | 1,056.1 | $ | 400.2 | |||||
Revenue - Six months ended | 4,627.1 | 2,002.4 | 754.5 | ||||||||
Long-lived assets and goodwill | 6,574.0 | 2,644.9 | 532.9 | ||||||||
2015 | |||||||||||
Revenue - Three months ended | $ | 2,364.1 | $ | 1,046.7 | $ | 394.5 | |||||
Revenue - Six months ended | 4,515.0 | 2,008.2 | 751.3 | ||||||||
Long-lived assets and goodwill | 6,135.5 | 2,790.0 | 547.1 |
2016 | 2015 | ||||||
Service cost | $ | 4.1 | $ | 2.4 | |||
Interest cost | 3.5 | 3.4 | |||||
Expected return on plan assets | (1.4 | ) | (1.4 | ) | |||
Amortization of prior service cost | 2.2 | 2.2 | |||||
Amortization of actuarial (gains) losses | 2.4 | 2.8 | |||||
$ | 10.8 | $ | 9.4 |
2016 | 2015 | ||||||
Service cost | $ | 2.0 | $ | 2.4 | |||
Interest cost | 1.8 | 2.2 | |||||
Amortization of prior service cost | 1.4 | 1.6 | |||||
Amortization of actuarial (gains) losses | 0.5 | 0.8 | |||||
$ | 5.7 | $ | 7.0 |
2016 | 2015 | ||||||
(Increase) decrease in accounts receivable | $ | 891.3 | $ | (127.2 | ) | ||
(Increase) decrease in work in process and other current assets | (188.5 | ) | (438.3 | ) | |||
Increase (decrease) in accounts payable | (1,413.4 | ) | (1.5 | ) | |||
Increase (decrease) in customer advances and other current liabilities | (342.8 | ) | (176.8 | ) | |||
Change in other assets and liabilities, net | (73.5 | ) | (65.0 | ) | |||
Cash used for operating capital | $ | (1,126.9 | ) | $ | (808.8 | ) | |
Income taxes paid | $ | 362.5 | $ | 330.3 | |||
Interest paid | $ | 106.8 | $ | 92.8 |
2016 | Gain (Loss) on Forward-Starting Interest Rate Swap | Unrealized Loss on Available-for-Sale Securities | Defined Benefit Pension and Postemployment Plans | Foreign Currency Translation | Total | ||||||||||||||
January 1 | $ | (3.3 | ) | $ | (0.9 | ) | $ | (87.9 | ) | $ | (923.3 | ) | $ | (1,015.4 | ) | ||||
Other comprehensive income (loss) before reclassifications | (28.5 | ) | — | — | (22.4 | ) | (50.9 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0.7 | — | 4.1 | — | 4.8 | ||||||||||||||
Other comprehensive income (loss) | (27.8 | ) | — | 4.1 | (22.4 | ) | (46.1 | ) | |||||||||||
June 30 | $ | (31.1 | ) | $ | (0.9 | ) | $ | (83.8 | ) | $ | (945.7 | ) | $ | (1,061.5 | ) |
2015 | |||||||||||||||||||
January 1 | $ | — | $ | (1.2 | ) | $ | (92.1 | ) | $ | (524.9 | ) | $ | (618.2 | ) | |||||
Other comprehensive income (loss) before reclassifications | 20.5 | 0.2 | — | (166.1 | ) | (145.4 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 4.4 | — | 4.4 | ||||||||||||||
Other comprehensive income (loss) | 20.5 | 0.2 | 4.4 | (166.1 | ) | (141.0 | ) | ||||||||||||
June 30 | $ | 20.5 | $ | (1.0 | ) | $ | (87.7 | ) | $ | (691.0 | ) | $ | (759.2 | ) |
2016 | 2015 | ||||||
Amortization of loss on cash flow hedge: | |||||||
Interest expense | $ | 1.2 | $ | — | |||
Income taxes | 0.5 | — | |||||
Interest expense, net of income tax | 0.7 | — | |||||
Amortization of defined benefit pension and postemployment plans: | |||||||
Prior service cost | $ | 3.6 | $ | 3.8 | |||
Actuarial (gains) losses | 2.9 | 3.6 | |||||
Net periodic benefit cost (see Note 8) | 6.5 | 7.4 | |||||
Income taxes | 2.4 | 3.0 | |||||
Periodic benefit cost, net of income tax | $ | 4.1 | $ | 4.4 |
2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 1,305.7 | $ | 1,305.7 | |||||||||||
Short-term investments | 231.0 | 231.0 | |||||||||||||
Available-for-sale securities | 5.1 | 5.1 | |||||||||||||
Interest rate and foreign currency derivative instruments | $ | 46.8 | 46.8 | ||||||||||||
Liabilities: | |||||||||||||||
Foreign currency derivative instruments | $ | 1.4 | $ | 1.4 | |||||||||||
Contingent purchase price obligations | $ | 430.4 | 430.4 |
2015 | |||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 2,605.2 | $ | 2,605.2 | |||||||||||
Short-term investments | 14.5 | 14.5 | |||||||||||||
Available-for-sale securities | 4.8 | 4.8 | |||||||||||||
Interest rate and foreign currency derivative instruments | $ | 32.4 | 32.4 | ||||||||||||
Liabilities: | |||||||||||||||
Interest rate and foreign currency derivative instruments | $ | 15.9 | $ | 15.9 | |||||||||||
Contingent purchase price obligations | $ | 322.0 | 322.0 |
2016 | 2015 | ||||||
January 1 | $ | 322.0 | $ | 300.7 | |||
Acquisitions | 150.8 | 51.6 | |||||
Revaluation and interest | 13.8 | 3.8 | |||||
Payments | (62.7 | ) | (42.3 | ) | |||
Foreign currency translation | 6.5 | (7.8 | ) | ||||
June 30 | $ | 430.4 | $ | 306.0 |
2016 | 2015 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 1,305.7 | $ | 1,305.7 | $ | 2,605.2 | $ | 2,605.2 | |||||||
Short-term investments | 231.0 | 231.0 | 14.5 | 14.5 | |||||||||||
Available-for-sale securities | 5.1 | 5.1 | 4.8 | 4.8 | |||||||||||
Interest rate and foreign currency derivative instruments | 46.8 | 46.8 | 32.4 | 32.4 | |||||||||||
Cost method investments | 14.1 | 14.1 | 21.5 | 21.5 | |||||||||||
Liabilities: | |||||||||||||||
Short-term debt | $ | 11.5 | $ | 11.5 | $ | 5.2 | $ | 5.2 | |||||||
Interest rate and foreign currency derivative instruments | 1.4 | 1.4 | 15.9 | 15.9 | |||||||||||
Contingent purchase price obligations | 430.4 | 430.4 | 322.0 | 322.0 | |||||||||||
Long-term debt, including current portion | 5,022.4 | 5,270.0 | 4,565.6 | 4,655.9 |
2016 | 2015 | ||||||
Revenue | $ | 3,884.9 | $ | 3,805.3 | |||
Operating Expenses: | |||||||
Salary and service costs | 2,824.6 | 2,762.9 | |||||
Occupancy and other costs | 314.6 | 321.0 | |||||
Cost of services | 3,139.2 | 3,083.9 | |||||
Selling, general and administrative expenses | 110.9 | 110.1 | |||||
Depreciation and amortization | 73.0 | 72.7 | |||||
3,323.1 | 3,266.7 | ||||||
Operating Income | 561.8 | 538.6 | |||||
Add back: Amortization of intangible assets | 28.5 | 27.1 | |||||
Earnings before interest, taxes and amortization of intangible assets (“EBITA”) | 590.3 | 565.7 | |||||
EBITA Margin - % | 15.2 | % | 14.9 | % | |||
Deduct: Amortization of intangible assets | 28.5 | 27.1 | |||||
Operating Income | 561.8 | 538.6 | |||||
Operating Margin - % | 14.5 | % | 14.2 | % | |||
Interest Expense | 54.3 | 44.7 | |||||
Interest Income | 9.5 | 10.1 | |||||
Income Before Income Taxes and Income From Equity Method Investments | 517.0 | 504.0 | |||||
Income Tax Expense | 167.9 | 165.3 | |||||
Income From Equity Method Investments | 2.8 | 4.0 | |||||
Net Income | 351.9 | 342.7 | |||||
Net Income Attributed To Noncontrolling Interests | 25.8 | 28.8 | |||||
Net Income - Omnicom Group Inc. | $ | 326.1 | $ | 313.9 |
Total | Domestic | International | ||||||||||||||||||
$ | % | $ | % | $ | % | |||||||||||||||
June 30, 2015 | $ | 3,805.3 | $ | 2,146.3 | $ | 1,659.0 | ||||||||||||||
Components of revenue change: | ||||||||||||||||||||
Foreign exchange impact | (62.6 | ) | (1.6 | )% | — | — | % | (62.6 | ) | (3.8 | )% | |||||||||
Acquisitions, net of dispositions | 13.2 | 0.3 | % | (16.8 | ) | (0.8 | )% | 30.0 | 1.8 | % | ||||||||||
Organic growth | 129.0 | 3.4 | % | 61.0 | 2.8 | % | 68.0 | 4.1 | % | |||||||||||
June 30, 2016 | $ | 3,884.9 | 2.1 | % | $ | 2,190.5 | 2.1 | % | $ | 1,694.4 | 2.1 | % |
• | The foreign exchange impact is calculated by translating the current period’s local currency revenue using the prior period average exchange rates to derive current period constant currency revenue (in this case $3,947.5 million for the Total column). The foreign exchange impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue ($3,884.9 million less $3,947.5 million for the Total column). |
• | Acquisitions, net of dispositions is calculated by aggregating the prior period revenue of the acquired businesses, less the prior period revenue of any business that was disposed of in the current period. |
• | Organic growth is calculated by subtracting both the foreign exchange and acquisition components from total revenue growth. |
• | The percentage change is calculated by dividing the individual component amount by the prior period revenue base of that component ($3,805.3 million for the Total column). |
2016 | 2015 | $ Change | % Change | % Organic Growth | |||||||||||||
Americas: | |||||||||||||||||
North America | $ | 2,329.7 | $ | 2,281.5 | $ | 48.2 | 2.1 | % | 3.2 | % | |||||||
Latin America | 98.9 | 82.6 | 16.3 | 19.7 | % | 1.7 | % | ||||||||||
EMEA: | |||||||||||||||||
Europe | 993.8 | 978.8 | 15.0 | 1.5 | % | 3.9 | % | ||||||||||
Middle East and Africa | 62.3 | 67.9 | (5.6 | ) | (8.3 | )% | (1.2 | )% | |||||||||
Asia Pacific | 400.2 | 394.5 | 5.7 | 1.4 | % | 4.5 | % | ||||||||||
$ | 3,884.9 | $ | 3,805.3 | $ | 79.6 | 2.1 | % | 3.4 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | 2016 vs. 2015 | |||||||||||||||||||||
$ | % of Revenue | $ | % of Revenue | $ Change | % Change | % Organic Growth | |||||||||||||||||
Advertising | $ | 2,066.0 | 53.2 | % | $ | 1,946.4 | 51.1 | % | $ | 119.6 | 6.1 | % | 7.7 | % | |||||||||
CRM | 1,178.7 | 30.3 | % | 1,231.1 | 32.4 | % | (52.4 | ) | (4.3 | )% | (2.7 | )% | |||||||||||
Public relations | 349.6 | 9.0 | % | 345.8 | 9.1 | % | 3.8 | 1.1 | % | 0.1 | % | ||||||||||||
Specialty communications | 290.6 | 7.5 | % | 282.0 | 7.4 | % | 8.6 | 3.1 | % | 4.4 | % | ||||||||||||
$ | 3,884.9 | $ | 3,805.3 | $ | 79.6 | 2.1 | % | 3.4 | % |
2016 | 2015 | ||||
Food and Beverage | 14 | % | 13 | % | |
Consumer Products | 11 | % | 10 | % | |
Pharmaceuticals and Health Care | 11 | % | 11 | % | |
Financial Services | 7 | % | 7 | % | |
Technology | 9 | % | 9 | % | |
Auto | 8 | % | 8 | % | |
Travel and Entertainment | 7 | % | 6 | % | |
Telecommunications | 4 | % | 5 | % | |
Retail | 6 | % | 6 | % | |
Other | 23 | % | 25 | % |
Three Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | 2016 vs. 2015 | ||||||||||||||||||
$ | % of Revenue | $ | % of Revenue | $ Change | % Change | |||||||||||||||
Revenue | $ | 3,884.9 | $ | 3,805.3 | $ | 79.6 | 2.1 | % | ||||||||||||
Operating Expenses: | ||||||||||||||||||||
Salary and service costs | 2,824.6 | 72.7 | % | 2,762.9 | 72.6 | % | 61.7 | 2.2 | % | |||||||||||
Occupancy and other costs | 314.6 | 8.1 | % | 321.0 | 8.4 | % | (6.4 | ) | (2.0 | )% | ||||||||||
Cost of services | 3,139.2 | 3,083.9 | 55.3 | 1.8 | % | |||||||||||||||
Selling, general and administrative expenses | 110.9 | 2.9 | % | 110.1 | 2.9 | % | 0.8 | 0.7 | % | |||||||||||
Depreciation and amortization | 73.0 | 1.9 | % | 72.7 | 1.9 | % | 0.3 | 0.4 | % | |||||||||||
3,323.1 | 85.5 | % | 3,266.7 | 85.8 | % | 56.4 | 1.7 | % | ||||||||||||
Operating Income | $ | 561.8 | 14.5 | % | $ | 538.6 | 14.2 | % | $ | 23.2 | 4.3 | % |
2016 | 2015 | ||||||
Revenue | $ | 7,384.0 | $ | 7,274.5 | |||
Operating Expenses: | |||||||
Salary and service costs | 5,449.2 | 5,360.0 | |||||
Occupancy and other costs | 614.7 | 639.0 | |||||
Cost of services | 6,063.9 | 5,999.0 | |||||
Selling, general and administrative expenses | 219.0 | 212.2 | |||||
Depreciation and amortization | 147.2 | 147.0 | |||||
6,430.1 | 6,358.2 | ||||||
Operating Income | 953.9 | 916.3 | |||||
Add back: Amortization of intangible assets | 56.8 | 54.5 | |||||
Earnings before interest, taxes and amortization of intangible assets (“EBITA”) | 1,010.7 | 970.8 | |||||
EBITA Margin - % | 13.7 | % | 13.3 | % | |||
Deduct: Amortization of intangible assets | 56.8 | 54.5 | |||||
Operating Income | 953.9 | 916.3 | |||||
Operating Margin - % | 12.9 | % | 12.6 | % | |||
Interest Expense | 104.6 | 88.4 | |||||
Interest Income | 19.7 | 19.6 | |||||
Income Before Income Taxes and Income From Equity Method Investments | 869.0 | 847.5 | |||||
Income Tax Expense | 283.4 | 278.0 | |||||
Income From Equity Method Investments | 2.6 | 3.0 | |||||
Net Income | 588.2 | 572.5 | |||||
Net Income Attributed To Noncontrolling Interests | 43.7 | 49.5 | |||||
Net Income - Omnicom Group Inc. | $ | 544.5 | $ | 523.0 |
Total | Domestic | International | ||||||||||||||||||
$ | % | $ | % | $ | % | |||||||||||||||
June 30, 2015 | $ | 7,274.5 | $ | 4,104.5 | $ | 3,170.0 | ||||||||||||||
Components of revenue change: | ||||||||||||||||||||
Foreign exchange impact | (159.2 | ) | (2.2 | )% | — | — | % | (159.2 | ) | (5.0 | )% | |||||||||
Acquisitions, net of dispositions | 9.0 | 0.1 | % | (42.6 | ) | (1.0 | )% | 51.6 | 1.6 | % | ||||||||||
Organic growth | 259.7 | 3.6 | % | 136.1 | 3.3 | % | 123.6 | 3.9 | % | |||||||||||
June 30, 2016 | $ | 7,384.0 | 1.5 | % | $ | 4,198.0 | 2.3 | % | $ | 3,186.0 | 0.5 | % |
• | The foreign exchange impact is calculated by translating the current period’s local currency revenue using the prior period average exchange rates to derive current period constant currency revenue (in this case $7,543.2 million for the Total column). The foreign exchange impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue ($7,384.0 million less $7,543.2 million for the Total column). |
• | Acquisitions, net of dispositions is calculated by aggregating the prior period revenue of the acquired businesses, less the prior period revenue of any business that was disposed of in the current period. |
• | Organic growth is calculated by subtracting both the foreign exchange and acquisition components from total revenue growth. |
• | The percentage change is calculated by dividing the individual component amount by the prior period revenue base of that component ($7,274.5 million for the Total column). |
2016 | 2015 | $ Change | % Change | % Organic Growth | |||||||||||||
Americas: | |||||||||||||||||
North America | $ | 4,453.0 | $ | 4,348.6 | $ | 104.4 | 2.4 | % | 3.8 | % | |||||||
Latin America | 174.1 | 166.4 | 7.7 | 4.6 | % | (3.1 | )% | ||||||||||
EMEA: | |||||||||||||||||
Europe | 1,883.5 | 1,880.2 | 3.3 | 0.2 | % | 3.3 | % | ||||||||||
Middle East and Africa | 118.9 | 128.0 | (9.1 | ) | (7.1 | )% | 0.2 | % | |||||||||
Asia Pacific | 754.5 | 751.3 | 3.2 | 0.4 | % | 4.8 | % | ||||||||||
$ | 7,384.0 | $ | 7,274.5 | $ | 109.5 | 1.5 | % | 3.6 | % |
Six Months Ended June, 30 | |||||||||||||||||||||||
2016 | 2015 | 2016 vs. 2015 | |||||||||||||||||||||
$ | % of Revenue | $ | % of Revenue | $ Change | % Change | % Organic Growth | |||||||||||||||||
Advertising | $ | 3,869.1 | 52.4 | % | $ | 3,680.4 | 50.6 | % | $ | 188.7 | 5.1 | % | 7.8 | % | |||||||||
CRM | 2,299.1 | 31.1 | % | 2,388.9 | 32.8 | % | (89.8 | ) | (3.8 | )% | (1.7 | )% | |||||||||||
Public relations | 668.4 | 9.1 | % | 669.3 | 9.2 | % | (0.9 | ) | (0.1 | )% | (0.4 | )% | |||||||||||
Specialty communications | 547.4 | 7.4 | % | 535.9 | 7.4 | % | 11.5 | 2.1 | % | 3.3 | % | ||||||||||||
$ | 7,384.0 | $ | 7,274.5 | $ | 109.5 | 1.5 | % | 3.6 | % |
2016 | 2015 | ||||
Food and Beverage | 14 | % | 13 | % | |
Consumer Products | 10 | % | 9 | % | |
Pharmaceuticals and Health Care | 12 | % | 11 | % | |
Financial Services | 7 | % | 7 | % | |
Technology | 9 | % | 9 | % | |
Auto | 8 | % | 8 | % | |
Travel and Entertainment | 7 | % | 6 | % | |
Telecommunications | 4 | % | 5 | % | |
Retail | 6 | % | 7 | % | |
Other | 23 | % | 25 | % |
Six Months Ended June, 30 | ||||||||||||||||||||
2016 | 2015 | 2016 vs. 2015 | ||||||||||||||||||
$ | % of Revenue | $ | % of Revenue | $ Change | % Change | |||||||||||||||
Revenue | $ | 7,384.0 | $ | 7,274.5 | $ | 109.5 | 1.5 | % | ||||||||||||
Operating Expenses: | ||||||||||||||||||||
Salary and service costs | 5,449.2 | 73.8 | % | 5,360.0 | 73.7 | % | 89.2 | 1.7 | % | |||||||||||
Occupancy and other costs | 614.7 | 8.3 | % | 639.0 | 8.8 | % | (24.3 | ) | (3.8 | )% | ||||||||||
Cost of services | 6,063.9 | 5,999.0 | 64.9 | |||||||||||||||||
Selling, general and administrative expenses | 219.0 | 3.0 | % | 212.2 | 3.0 | % | 6.8 | 3.2 | % | |||||||||||
Depreciation and amortization | 147.2 | 2.0 | % | 147.0 | 2.0 | % | 0.2 | 0.1 | % | |||||||||||
6,430.1 | 87.1 | % | 6,358.2 | 87.4 | % | 71.9 | 1.1 | % | ||||||||||||
Operating Income | $ | 953.9 | 12.9 | % | $ | 916.3 | 12.6 | % | $ | 37.6 | 4.1 | % |
June 30, | |||
2016 | 2015 | ||
Long-Term Growth Rate | 4% | 4% | |
WACC | 9.7% - 10.3% | 10.1% - 10.7% |
June 30, 2016 | December 31, 2015 | June 30, 2015 | |||||||||
Short- term debt | $ | 11.5 | $ | 5.2 | $ | 14.1 | |||||
Long-term debt, including current portion | 5,022.4 | 4,565.6 | 4,534.3 | ||||||||
Total Debt | $ | 5,033.9 | $ | 4,570.8 | $ | 4,548.4 | |||||
Less: Cash and cash equivalents and short-term investments | 1,536.7 | 2,619.7 | 1,362.1 | ||||||||
Net debt | $ | 3,497.2 | $ | 1,951.1 | $ | 3,186.3 |
2016 | 2015 | ||||||
Average amount outstanding during the quarter | $ | 1,096.3 | $ | 1,239.3 | |||
Maximum amount outstanding during the quarter | $ | 1,608.9 | $ | 1,720.7 | |||
Average days outstanding | 9.5 | 11.5 | |||||
Weighted average interest rate | 0.68 | % | 0.47 | % |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||
April 1 - 30, 2016 | 764,490 | $83.62 | — | — | |||||
May 1 - 31, 2016 | 1,294,645 | $83.54 | — | — | |||||
June 1 - 30, 2016 | 76,317 | $82.85 | — | — | |||||
2,135,452 | $83.54 | — | — |
4.1 | Second Supplemental Indenture, dated as of April 6, 2016, among Omnicom Group Inc., Omnicom Capital Inc. and Deutsche Bank Trust Company Americas, as trustee, in connection with the issuance of $1.4 billion 3.60% Senior Notes due 2026 (Exhibit 4.1 to our Current Report on Form 8-K (File No. 1-10551) dated April 6, 2016 and incorporated herein by reference). |
4.2 | Form of 3.60% Notes due 2026 (included in Exhibit 4.1 to our Current Report on Form 8-K (File No. 1-10551) dated April 6, 2016 and incorporated herein by reference). |
12 | Computation of Ratio of Earnings to Fixed Charges. |
31.1 | Certification of the Chief Executive Officer and President required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. |
31.2 | Certification of the Executive Vice President and Chief Financial Officer required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. |
32 | Certification of the Chief Executive Officer and President and the Executive Vice President and Chief Financial Officer required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350. |
101 | Interactive Data File. |
OMNICOM GROUP INC. | ||
Date: | July 19, 2016 | /s/ PHILIP J. ANGELASTRO |
Philip J. Angelastro Executive Vice President and Chief Financial Officer (Principal Financial Officer and Authorized Signatory) |
For the Six Months Ended June 30, 2016 | ||||
Earnings: | ||||
Income before income taxes | $ | 869.0 | ||
Add: Dividends from equity method investments | 4.9 | |||
Fixed charges | 165.8 | |||
Total earnings | $ | 1,039.7 | ||
Fixed charges: | ||||
Interest expense (a) | $ | 104.6 | ||
Rent expense interest factor (b) | 61.2 | |||
Total fixed charges | $ | 165.8 | ||
Ratio of earnings to fixed charges | 6.27x |
(a) | Interest expense includes interest on third-party indebtedness. |
(b) | The rent expense interest factor reflects an appropriate portion (one-third) of rent expense representative of interest. |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 19, 2016 | /s/ JOHN D. WREN |
John D. Wren Chief Executive Officer and President |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 19, 2016 | /s/ PHILIP J. ANGELASTRO |
Philip J. Angelastro Executive Vice President and Chief Financial Officer |
• | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
• | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Omnicom Group Inc. as of the dates and for the periods expressed in the Report. |
/s/ JOHN D. WREN | ||
Name: | John D. Wren | |
Title: | Chief Executive Officer and President |
/s/ PHILIP J. ANGELASTRO | ||
Name: | Philip J. Angelastro | |
Title: | Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 08, 2016 |
|
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 | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 236,538,263 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Allowance for doubtful accounts | $ 22.2 | $ 22.5 |
Accumulated depreciation | 1,234.8 | 1,206.6 |
Intangible assets, accumulated amortization | $ 743.0 | $ 680.7 |
Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Revenue | $ 3,884.9 | $ 3,805.3 | $ 7,384.0 | $ 7,274.5 |
Salary and service costs | 2,824.6 | 2,762.9 | 5,449.2 | 5,360.0 |
Occupancy and other costs | 314.6 | 321.0 | 614.7 | 639.0 |
Cost of services | 3,139.2 | 3,083.9 | 6,063.9 | 5,999.0 |
Selling, general and administrative expenses | 110.9 | 110.1 | 219.0 | 212.2 |
Depreciation and amortization | 73.0 | 72.7 | 147.2 | 147.0 |
Operating Expenses | 3,323.1 | 3,266.7 | 6,430.1 | 6,358.2 |
Operating Income | 561.8 | 538.6 | 953.9 | 916.3 |
Interest Expense | 54.3 | 44.7 | 104.6 | 88.4 |
Interest Income | 9.5 | 10.1 | 19.7 | 19.6 |
Income Before Income Taxes and Income From Equity Method Investments | 517.0 | 504.0 | 869.0 | 847.5 |
Income Tax Expense | 167.9 | 165.3 | 283.4 | 278.0 |
Income From Equity Method Investments | 2.8 | 4.0 | 2.6 | 3.0 |
Net Income | 351.9 | 342.7 | 588.2 | 572.5 |
Net Income Attributed To Noncontrolling Interests | 25.8 | 28.8 | 43.7 | 49.5 |
Net Income - Omnicom Group Inc. | $ 326.1 | $ 313.9 | $ 544.5 | $ 523.0 |
Net Income Per Share - Omnicom Group Inc.: | ||||
Basic | $ 1.36 | $ 1.27 | $ 2.26 | $ 2.10 |
Diluted | 1.36 | 1.26 | 2.25 | 2.09 |
Dividends Declared Per Common Share | $ 0.55 | $ 0.50 | $ 1.05 | $ 1.00 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Gain (loss) on forward-starting interest rate swap, income taxes | $ 0.5 | $ 16.4 | $ (19.9) | $ 14.6 |
Unrealized gain on available-for-sale securities, income taxes | 0.0 | 0.0 | 0.0 | 0.1 |
Foreign currency translation adjustment, income taxes | (61.0) | 81.5 | (2.8) | (94.3) |
Defined benefit pension and postemployment plans adjustment, income taxes | $ 1.2 | $ 1.5 | $ 2.4 | $ 3.0 |
Presentation of Financial Statements |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
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 our 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 (“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, 2015 (“2015 10-K”). Results for the interim periods are not necessarily indicative of results that may be expected for the year. Certain reclassifications have been made to the prior year financial information to conform to the current year presentation. Effective January 1, 2016, selling, general and administrative expenses (“SG&A”) for the current and prior periods are reported as a separate line in the unaudited consolidated statements of income. Historically, we included SG&A expenses in salary and service costs and occupancy and other costs. In addition, we present cost of services in two distinct categories: salary and service costs, and occupancy and other costs. As a service business, salary and service costs make up the vast majority of our operating expenses and substantially all these costs comprise the essential components directly linked to the delivery of our services, such as employee compensation, including freelance labor, employee benefit costs, direct service costs, including the costs of third-party suppliers, and client-related travel costs. Occupancy and other costs consist of the indirect costs related to the delivery of our services, including office and equipment rent, other occupancy costs, technology costs, general office expenses and other expenses. SG&A expenses primarily consist of third-party marketing costs, professional fees and compensation and related benefit costs and occupancy and other costs of our corporate and executive offices, including group-wide finance and accounting, treasury, legal and governance, human resource oversight and similar costs. |
New Accounting Standards |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | New Accounting Standards In May 2014, the FASB issued FASB ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which will replace all existing revenue recognition guidance under U.S. GAAP. On July 9, 2015, the FASB approved a one-year deferral of the effective date of ASU 2014-09 to all annual and interim periods beginning after December 15, 2017, with early application permitted only for annual and interim periods beginning after December 31, 2016. ASU 2014-09 provides for one of two methods of transition: retrospective application to each prior period presented or recognition of the cumulative effect of retrospective application of the new standard as of the beginning of the period of initial application. Presently, we are not yet in a position to conclude on the application date or the transition method we will choose. Based on our initial assessment, the impact of the application of the new standard will likely result in a change in the timing of our revenue recognition for performance incentives received from clients and the recognition of certain reimbursable out-of-pocket costs as revenue. Performance incentives are currently recognized in revenue when specific quantitative goals are achieved, or when our performance against qualitative goals is determined by the client. Under the new standard, we will be required to estimate the amount of the incentive that will be earned at the inception of the contract and recognize the incentive over the term of the contract. While performance incentives are not material to our revenue, this will result in an acceleration in revenue recognition for certain contract incentives compared to the current method. Certain incidental costs that are reimbursed by our clients and are currently required to be recorded in revenue will likely not be recorded as revenue under the new standard. We expect this will result in less revenue and related cost recorded in our results of operations. While we have not yet completed our assessment, we do not expect this change to have a material impact on our revenue and it will not result in any change to income before income taxes. In March 2016, the FASB issued further guidance on principal versus agent considerations. In certain of our businesses we record revenue as a principal and include certain pass-through costs that are integral to the delivery of our service in revenue. We are currently evaluating the impact of the principal versus agent guidance on our revenue and cost of service, however we do not expect the change, if any, to have a material effect on results of operations. In February 2016, the FASB issued FASB ASU 2016-02, Leases (“ASU 2016-02”), which eliminates the current tests for lease classification under U.S. GAAP and requires lessees to recognize the right-to-use assets and related lease liabilities on the balance sheet. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018 and early application is permitted. The new standard provides for a modified retrospective application for leases existing at, or entered into after, the earliest comparative period presented in the financial statements. We will apply ASU 2016-02 on January 1, 2019. While we are not yet in a position to assess the full impact of the application of the new standard, we expect that the impact of recording the lease liabilities and the corresponding right-to-use assets will have a significant impact on our total assets and liabilities with a minimal impact on our equity. In March 2016, the FASB issued FASB ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which changes certain aspects of the accounting for share-based payments to employees. ASU 2016-09 is effective for annual and interim periods beginning after December 15, 2016 and early application is permitted. Certain changes will be applied prospectively and other changes will be applied using a modified retrospective approach with the recognition of the cumulative effect of the application of the new standard as of the beginning of the period of initial application. We will apply ASU 2016-09 on January 1, 2017. We do not expect that the application of the new standard will have a significant impact on income before income taxes. However, the new standard requires excess tax benefits or deficiencies related to share-based compensation to be recognized in income taxes as a tax benefit or expense upon vesting of restricted stock awards and the exercise of stock option awards. The excess tax benefit or expense will be calculated as the difference between the grant date price and the price of our common stock on the vesting or exercise date. As a result, the effect on tax expense is dependent on the price of our common stock and it is not possible to estimate with any accuracy the impact of the new standard on income tax expense. In June 2016, the FASB issued FASB ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (“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 apply ASU 2016-13 on January 1, 2020. However, we are not yet in a position to assess the impact of the application of the new standard on our results of operations or financial position. |
Net Income Per Common Share |
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Net Income per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Common Share | Net Income per Common Share The computations of basic and diluted net income per common share for the three and six months ended June 30, 2016 and 2015 were (in millions, except per share amounts):
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets at June 30, 2016 and December 31, 2015 were (in millions):
Changes in goodwill for the six months ended June 30, 2016 and 2015 were (in millions):
There were no goodwill impairment losses recorded in the first six months of 2016 or 2015 and there are no accumulated goodwill impairment losses. |
Debt |
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Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Credit Facilities As a source of short-term financing, we have a $2.5 billion revolving credit facility (“Credit Facility”) that expires July 31, 2020 and domestic and international uncommitted credit lines, and we can issue up to $2 billion of commercial paper. The uncommitted credit lines aggregated $1.2 billion at June 30, 2016 and December 31, 2015. Effective July 31, 2016, in accordance with the terms of the Credit Agreement, the expiration of the Credit Agreement will be extended to July 31, 2021. There were no outstanding commercial paper issuances or borrowings under the Credit Facility or the uncommitted credit lines at June 30, 2016 and December 31, 2015. Available and unused credit lines at June 30, 2016 and December 31, 2015 were (in millions):
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 June 30, 2016 we were in compliance with these covenants as our Leverage Ratio was 2.2 times and our Interest Coverage Ratio was 11.4 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 June 30, 2016 and December 31, 2015 of $11.5 million and $5.2 million, respectively, represents bank overdrafts and short-term borrowings of our international subsidiaries. Due to the short-term nature of this debt, carrying value approximates fair value. Long-Term Debt Long-term debt at June 30, 2016 and December 31, 2015 was (in millions):
On April 6, 2016, we issued $1.4 billion principal amount of 3.60% Senior Notes due April 15, 2026 (“2026 Notes”). The net proceeds received by us, after deducting the underwriting discount and offering expenses, were $1.387 billion. A portion of the net proceeds were used to retire our outstanding $1 billion 5.9% Senior Notes due 2016 (“2016 Notes”) at maturity on April 15, 2016. On March 28, 2016, we settled the outstanding forward-starting interest rate swap, which was entered into in connection with the refinancing of the 2016 Notes, at a loss of $54.5 million, which was paid to the counterparties on April 6, 2016. Beginning in April 2016, the loss is being amortized to interest expense over the term of the 2026 Notes resulting in an effective interest rate on the 2026 Notes of approximately 4.1%. On January 19, 2016, we settled the outstanding $1 billion interest rate swap on our 3.625% Senior Notes due 2022 (“2022 Notes”) and realized a gain of $54.2 million. The gain is being amortized to interest expense over the remaining term of the 2022 Notes. In connection with the outstanding $750 million interest rate swap on the 3.65% Senior Notes due 2024 (“2024 Notes”), at June 30, 2016 we recorded a receivable, which is included in other assets, of $35.4 million and at December 31, 2015 we recorded a liability, which was included in long-term liabilities of $10.0 million. The asset and liability represent the fair value of the swap that was substantially offset by the change in the carrying value of the 2024 Notes reflecting the change in fair value of the notes. Accordingly, any hedge ineffectiveness was not material to our results of operations. On April 6, 2016, in connection with the issuance of the 2026 Notes, we entered into a $500 million notional amount fixed-to-floating interest rate swap. The swap hedges the risk of changes in fair value of a portion of the notes attributable to changes in the benchmark LIBOR interest rate. We will receive fixed interest rate payments equal to the coupon interest rate on the notes and will pay a variable interest rate equal to three month LIBOR, plus a spread of 1.982%. The swap qualifies and is designated as a fair value hedge on the 2026 Notes. Gains and losses attributed to changes in the fair value of the swap are expected to substantially offset changes in the fair value of the notes attributed to changes in the benchmark interest rate. The net interest settlement is recorded in interest expense. At June 30, 2016, we recorded a receivable, which was included in other assets, of $10.6 million. The asset represents the fair value of the swap that was substantially offset by the change in the fair value of the notes. As of June 30, 2016, the total aggregate principal amount of our fixed rate senior notes was $4.9 billion and the total notional amount of the fixed-to-floating interest rate swaps was $1.25 billion. |
Segment Reporting |
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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. 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 office and general 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 as of and for the three and six months ended June 30, 2016 and 2015 were (in millions):
The Americas comprises North America, which includes the United States, Canada and Puerto Rico, and Latin America, which includes Mexico. EMEA comprises the United Kingdom, the Euro currency countries, other European countries that have not adopted the European Union Monetary standard, 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 and six months ended June 30, 2016 and 2015 was $2,190.5 million and $4,198.0 million and $2,146.3 million and $4,104.5 million, respectively. |
Income Taxes |
6 Months Ended |
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Jun. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the six months ended June 30, 2016, decreased slightly period-over-period to 32.6% from 32.8%. At June 30, 2016, our unrecognized tax benefits were $104.8 million. Of this amount, approximately $52.3 million would affect our effective tax rate upon resolution of the uncertain tax positions. |
Pension and Other Postemployment Benefits |
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Pension and Other Postemployment Benefits | Pension and Other Postemployment Benefits Defined Benefit Pension Plans The components of net periodic benefit cost for the six months ended June 30, 2016 and 2015 were (in millions):
We contributed $0.5 million and $0.6 million to our defined benefit pension plans in the six months ended June 30, 2016 and 2015, respectively. Postemployment Arrangements The components of net periodic benefit cost for the six months ended June 30, 2016 and 2015 were (in millions):
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Supplemental Cash Flow Data |
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Supplemental Cash Flow Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Data | Supplemental Cash Flow Data The change in operating capital for the six months ended June 30, 2016 and 2015 was (in millions):
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Commitments and Contingent Liabilities |
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Jun. 30, 2016 | |
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. |
Changes in Accumulated Other Comprehensive Income (Loss) |
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Changes in Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2016 and 2015 were (in millions):
On March 28, 2016, we settled the outstanding forward-starting interest rate swap at a loss of $54.5 million, $31.8 million net of income taxes. Beginning in April 2016, the loss is being amortized to interest expense over the term of the 2026 Notes (see Note 5). Reclassifications from accumulated other comprehensive income (loss) for the six months ended June 30, 2016 and 2015 were (in millions):
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Fair Value |
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Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Financial assets and liabilities measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015 were (in millions):
The changes in Level 3 contingent purchase price obligations for the six months ended June 30, 2016 and 2015 were (in millions):
The carrying amount and fair value of our financial instruments at June 30, 2016 and December 31, 2015 were (in millions):
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 |
6 Months Ended |
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Jun. 30, 2016 | |
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. |
Net Income Per Common Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computations of Basic and Diluted Net Income per Common Share - Omnicom Group Inc. | The computations of basic and diluted net income per common share for the three and six months ended June 30, 2016 and 2015 were (in millions, except per share amounts):
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Goodwill and Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and intangible assets at June 30, 2016 and December 31, 2015 were (in millions):
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Changes in Goodwill | Changes in goodwill for the six months ended June 30, 2016 and 2015 were (in millions):
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available and Unused Lines of Credit | Available and unused credit lines at June 30, 2016 and December 31, 2015 were (in millions):
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Long-Term Notes Payable | Long-term debt at June 30, 2016 and December 31, 2015 was (in millions):
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Segment Reporting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | Revenue and long-lived assets and goodwill by geographic region as of and for the three and six months ended June 30, 2016 and 2015 were (in millions):
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Pension and Other Postemployment Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | Defined Benefit Pension Plans The components of net periodic benefit cost for the six months ended June 30, 2016 and 2015 were (in millions):
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Postemployment Arrangements [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | Postemployment Arrangements The components of net periodic benefit cost for the six months ended June 30, 2016 and 2015 were (in millions):
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Supplemental Cash Flow Data (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Operating Capital | The change in operating capital for the six months ended June 30, 2016 and 2015 was (in millions):
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Changes in Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Changes in Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in accumulated other comprehensive income (loss) | The changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2016 and 2015 were (in millions):
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Reclassifications from accumulated other comprehensive income (loss) | Reclassifications from accumulated other comprehensive income (loss) for the six months ended June 30, 2016 and 2015 were (in millions):
|
Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2016 and December 31, 2015 were (in millions):
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Changes in Level 3 Contingent Purchase Price Obligations | The changes in Level 3 contingent purchase price obligations for the six months ended June 30, 2016 and 2015 were (in millions):
|
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Carrying Amounts and Fair Value of Financial Instruments | The carrying amount and fair value of our financial instruments at June 30, 2016 and December 31, 2015 were (in millions):
|
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Net Income Available for Common Shares: | ||||
Net income - Omnicom Group Inc. | $ 326.1 | $ 313.9 | $ 544.5 | $ 523.0 |
Net income allocated to participating securities | (2.0) | (3.9) | (3.6) | (6.7) |
Net income available for common shares | $ 324.1 | $ 310.0 | $ 540.9 | $ 516.3 |
Weighted Average Shares: | ||||
Basic | 237.7 | 244.5 | 238.9 | 245.5 |
Dilutive stock options and restricted shares | 1.3 | 1.2 | 1.2 | 1.1 |
Diluted | 239.0 | 245.7 | 240.1 | 246.6 |
Anti-dilutive stock options and restricted shares | 0.0 | 0.1 | 0.0 | 0.1 |
Net Income per Common Share - Omnicom Group Inc.: | ||||
Basic | $ 1.36 | $ 1.27 | $ 2.26 | $ 2.10 |
Diluted | $ 1.36 | $ 1.26 | $ 2.25 | $ 2.09 |
Segment Reporting (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Revenue | $ 3,884.9 | $ 3,805.3 | $ 7,384.0 | $ 7,274.5 |
Americas | ||||
Revenue | 2,428.6 | 2,364.1 | 4,627.1 | 4,515.0 |
Long-lived assets and goodwill | 6,574.0 | 6,135.5 | 6,574.0 | 6,135.5 |
UNITED STATES | ||||
Revenue | 2,190.5 | 2,146.3 | 4,198.0 | 4,104.5 |
EMEA | ||||
Revenue | 1,056.1 | 1,046.7 | 2,002.4 | 2,008.2 |
Long-lived assets and goodwill | 2,644.9 | 2,790.0 | 2,644.9 | 2,790.0 |
Asia Pacific | ||||
Revenue | 400.2 | 394.5 | 754.5 | 751.3 |
Long-lived assets and goodwill | $ 532.9 | $ 547.1 | $ 532.9 | $ 547.1 |
Income Taxes (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Taxes [Abstract] | ||
Effective tax rate | 32.60% | 32.80% |
Unrecognized tax benefits | $ 104.8 | |
Unrecognized tax benefits that would impact effective tax rate | $ 52.3 |
Pension and Other Postemployment Benefits (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Defined Benefit Pension Plans [Member] | ||
Components of Net Periodic Benefit Cost [Abstract] | ||
Service cost | $ 4.1 | $ 2.4 |
Interest cost | 3.5 | 3.4 |
Expected return on plan assets | (1.4) | (1.4) |
Amortization of prior service cost | 2.2 | 2.2 |
Amortization of actuarial (gains) losses | 2.4 | 2.8 |
Net periodic benefit cost | 10.8 | 9.4 |
Defined benefit pension plans, contributions by employer | 0.5 | 0.6 |
Postemployment Arrangements [Member] | ||
Components of Net Periodic Benefit Cost [Abstract] | ||
Service cost | 2.0 | 2.4 |
Interest cost | 1.8 | 2.2 |
Amortization of prior service cost | 1.4 | 1.6 |
Amortization of actuarial (gains) losses | 0.5 | 0.8 |
Net periodic benefit cost | $ 5.7 | $ 7.0 |
Supplemental Cash Flow Data (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Change in Operating Capital [Abstract] | ||
(Increase) decrease in accounts receivable | $ 891.3 | $ (127.2) |
(Increase) decrease in work in process and other current assets | (188.5) | (438.3) |
Increase (decrease) in accounts payable | (1,413.4) | (1.5) |
Increase (decrease) in customer advances and other current liabilities | (342.8) | (176.8) |
Change in other assets and liabilities, net | (73.5) | (65.0) |
Change in operating capital | (1,126.9) | (808.8) |
Income taxes paid | 362.5 | 330.3 |
Interest paid | $ 106.8 | $ 92.8 |
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