Presentation of Financial Statements

3 Months Ended

Mar. 31, 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

We continued to experience the negative effect on the global economy from the COVID-19 pandemic in the first quarter of 2021. As the COVID-19 pandemic did not negatively impact our major markets until late in the first quarter of 2020, the negative effects on our revenue continued until we completely cycled through the end of the first quarter of 2021. Although the impact was mixed by geography and discipline, revenue for the three months ended March 31, 2021 increased $20.0 million, or 0.6%, compared to the three months ended March 31, 2020. The increase in revenue primarily reflects the strengthening of certain foreign currencies, primarily the Euro and the British Pound, against the U.S. Dollar, substantially offset by a decrease in client spending attributable to the COVID-19 pandemic (see Note 2).

As long as the COVID-19 pandemic remains a public health threat, global economic conditions will continue to be volatile depending on several factors, including new information concerning the severity of the pandemic, government actions to mitigate the effects of the pandemic in the near-term, and the resulting impact on 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 subsidies. We will continue to assess the impact of the COVID-19 pandemic on our business and will respond accordingly.

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.