Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 10, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | OMNICOM GROUP INC. | |
Entity Central Index Key | 29989 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 244,312,135 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $1,526.70 | $2,388.10 |
Short-term investments, at cost | 5.7 | 2.2 |
Accounts receivable, net of allowance for doubtful accounts of $23.5 and $24.9 | 5,840.10 | 6,524.70 |
Work in process | 1,410.30 | 1,166.60 |
Other current assets | 1,122.10 | 1,108.90 |
Total Current Assets | 9,904.90 | 11,190.50 |
Property and Equipment at cost, less accumulated depreciation of $1,212.0 and $1,221.2 | 681.5 | 708 |
Equity Method Investments | 142.2 | 148.2 |
Goodwill | 8,639.80 | 8,822.20 |
Intangible Assets, net of accumulated amortization of $620.4 and $611.4 | 367.2 | 389.4 |
Other Assets | 335.4 | 301.4 |
TOTAL ASSETS | 20,071 | 21,559.70 |
Current Liabilities: | ||
Accounts payable | 7,850.20 | 8,797.50 |
Customer advances | 1,153.30 | 1,180.90 |
Current portion of debt | 0.3 | 0.4 |
Short-term borrowings | 9.6 | 7.2 |
Taxes payable | 226.5 | 301.1 |
Other current liabilities | 1,781.30 | 1,774 |
Total Current Liabilities | 11,021.20 | 12,061.10 |
Long-Term Notes Payable | 4,593.80 | 4,562.60 |
Long-Term Liabilities | 802.6 | 774.3 |
Long-Term Deferred Tax Liabilities | 643.3 | 654.7 |
Commitments and Contingent Liabilities (See Note 11) | ||
Temporary Equity - Redeemable Noncontrolling Interests | 177.4 | 185.7 |
Shareholders’ Equity: | ||
Preferred stock | 0 | 0 |
Common stock | 59.6 | 59.6 |
Additional paid-in capital | 852 | 818.6 |
Retained earnings | 9,661.70 | 9,576.90 |
Accumulated other comprehensive income (loss) | -936.7 | -618.2 |
Treasury stock, at cost | -7,247.10 | -6,986.90 |
Total Shareholders’ Equity | 2,389.50 | 2,850 |
Noncontrolling interests | 443.2 | 471.3 |
Total Equity | 2,832.70 | 3,321.30 |
TOTAL LIABILITIES AND EQUITY | $20,071 | $21,559.70 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Allowance for doubtful accounts | $23.50 | $24.90 |
Accumulated depreciation | 1,212 | 1,221.20 |
Intangible assets, accumulated amortization | $620.40 | $611.40 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | $3,469.20 | $3,502.20 |
Operating Expenses | 3,091.50 | 3,119.50 |
Operating Income | 377.7 | 382.7 |
Interest Expense | 43.6 | 47.7 |
Interest Income | 9.4 | 8.7 |
Income Before Income Taxes and Income From Equity Method Investments | 343.5 | 343.7 |
Income Tax Expense | 112.7 | 116.3 |
Income (Loss) From Equity Method Investments | -1 | 0.6 |
Net Income | 229.8 | 228 |
Net Income Attributed To Noncontrolling Interests | 20.7 | 22.5 |
Net Income - Omnicom Group Inc. | $209.10 | $205.50 |
Net Income Per Share - Omnicom Group Inc.: | ||
Basic | $0.84 | $0.78 |
Diluted | $0.83 | $0.77 |
Dividends Declared Per Common Share | $0.50 | $0.40 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Income | $229.80 | $228 |
Unrealized gain (loss) on cash flow hedge, net of income taxes of ($1.7) for the three months ended March 31, 2015 | -2.5 | 0 |
Unrealized gain (loss) on available-for-sale securities, net of income taxes of $0.1 and $0.1 for the three months ended March 31, 2015 and 2014, respectively | 0.2 | 0.1 |
Foreign currency translation adjustment, net of income taxes of ($175.8) and $15.6 for the three months ended March 31, 2015 and 2014, respectively | -341.3 | 30.2 |
Defined benefit pension and postemployment plans adjustment, net of income taxes of $1.5 and $0.9 for the three months ended March 31, 2015 and 2014, respectively | 2.2 | 1.4 |
Other Comprehensive Income (Loss) | -341.4 | 31.7 |
Comprehensive Income (Loss) | -111.6 | 259.7 |
Comprehensive Income (Loss) Attributed to Noncontrolling Interests | -2.2 | 32.3 |
Comprehensive Income (Loss) - Omnicom Group Inc. | ($109.40) | $227.40 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Unrealized gain (loss) on cash flow hedge, income taxes | ($1.70) | $0 |
Unrealized gain (loss) on available-for-sale securities, income taxes | 0.1 | 0.1 |
Foreign currency translation adjustment, income taxes | -175.8 | 15.6 |
Defined benefit pension and postemployment plans adjustment, income taxes | $1.50 | $0.90 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows from Operating Activities: | ||
Net Income | $229.80 | $228 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 46.9 | 46.5 |
Amortization of intangible assets | 27.3 | 24.4 |
Share-based compensation | 24.6 | 21.6 |
Excess tax benefit from share-based compensation | -10.9 | -8.8 |
Other, net | 3.8 | 0.3 |
Change in operating capital | -559.5 | -742.3 |
Net Cash Used In Operating Activities | -238 | -430.3 |
Cash Flows from Investing Activities: | ||
Capital expenditures | -38.2 | -42.5 |
Acquisition of businesses and interests in affiliates, net of cash acquired | -22.8 | -11.9 |
(Purchase of) proceeds from investments, net | -3.9 | 11.9 |
Net Cash Used In Investing Activities | -64.9 | -42.5 |
Cash Flows from Financing Activities: | ||
Proceeds from short-term debt | 2.7 | 1.7 |
Dividends paid to common shareholders | -126.2 | -105.9 |
Repurchases of common stock | -270.7 | -22.1 |
Proceeds from stock plans | 3.7 | 4.8 |
Acquisition of additional noncontrolling interests | -3.1 | -8.4 |
Dividends paid to noncontrolling interest shareholders | -25 | -24.8 |
Payment of contingent purchase price obligations | -1.8 | -7.8 |
Excess tax benefit from share-based compensation | 10.9 | 8.8 |
Other, net | -9 | -3.2 |
Net Cash Used In Financing Activities | -418.5 | -156.9 |
Effect of foreign exchange rate changes on cash and cash equivalents | -140 | 1.3 |
Net Decrease in Cash and Cash Equivalents | -861.4 | -628.4 |
Cash and Cash Equivalents at the Beginning of Period | 2,388.10 | 2,710.50 |
Cash and Cash Equivalents at the End of Period | $1,526.70 | $2,082.10 |
Presentation_of_Financial_Stat
Presentation of Financial Statements | 3 Months Ended |
Mar. 31, 2015 | |
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 condensed 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 condensed 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. Certain reclassifications have been made to the prior year financial information to conform to the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014 (“2014 10-K”). Results for the interim periods are not necessarily indicative of results that may be expected for the year. |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
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 replaces all existing revenue recognition guidance under U.S. GAAP. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016 and early application is not permitted. 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 in the period of initial application. On April 1, 2015, the FASB proposed a one year deferral of the effective date to December 15, 2017 and early application would be permitted, but not before the original effective date of December 15, 2016. Presently, we are not yet in a position to assess the application date, the transition method we will choose, or the impact of the application on our results of operations or financial position. | |
In February 2015, the FASB issued FASB ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”), which changes the consolidation analysis for both the variable interest model and for the voting model for limited partnerships and similar entities. ASU 2015-02 is effective for annual and interim periods beginning after December 15, 2015 and early application is permitted. ASU 2015-02 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 in the period of initial application. We will apply ASU 2015-02 on January 1, 2016 and we do not expect that the application of the new standard will have a significant impact on our results of operations or financial position. |
Net_Income_Per_Common_Share
Net Income Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Net Income per Common Share [Abstract] | ||||||||
Net Income per Common Share | Net Income per Common Share | |||||||
The computation of basic and diluted net income per common share for the three months ended March 31, 2015 and 2014 was (in millions, except per share amounts): | ||||||||
2015 | 2014 | |||||||
Net Income Available for Common Shares: | ||||||||
Net income - Omnicom Group Inc. | $ | 209.1 | $ | 205.5 | ||||
Net income allocated to participating securities | (2.8 | ) | (4.1 | ) | ||||
$ | 206.3 | $ | 201.4 | |||||
Weighted Average Shares: | ||||||||
Basic | 246.4 | 259.1 | ||||||
Dilutive stock options and restricted shares | 1 | 2.3 | ||||||
Diluted | 247.4 | 261.4 | ||||||
Anti-dilutive stock options and restricted shares | 0.1 | 0.1 | ||||||
Net Income per Common Share - Omnicom Group Inc.: | ||||||||
Basic | $ | 0.84 | $ | 0.78 | ||||
Diluted | $ | 0.83 | $ | 0.77 | ||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||||||||||
Goodwill and intangible assets at March 31, 2015 and December 31, 2014 were (in millions): | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
Goodwill | $ | 9,170.60 | $ | (530.8 | ) | $ | 8,639.80 | $ | 9,377.60 | $ | (555.4 | ) | $ | 8,822.20 | ||||||||||
Intangible assets: | ||||||||||||||||||||||||
Purchased and internally developed software | $ | 296.5 | $ | (222.1 | ) | $ | 74.4 | $ | 298.7 | $ | (221.4 | ) | $ | 77.3 | ||||||||||
Customer related and other | 691.1 | (398.3 | ) | 292.8 | 702.1 | (390.0 | ) | 312.1 | ||||||||||||||||
$ | 987.6 | $ | (620.4 | ) | $ | 367.2 | $ | 1,000.80 | $ | (611.4 | ) | $ | 389.4 | |||||||||||
Changes in goodwill for the three months ended March 31, 2015 and 2014 were (in millions): | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
1-Jan | $ | 8,822.20 | $ | 8,916.00 | ||||||||||||||||||||
Acquisitions | 65.1 | 51.4 | ||||||||||||||||||||||
Dispositions | (0.3 | ) | (1.2 | ) | ||||||||||||||||||||
Foreign currency translation | (247.2 | ) | 20.5 | |||||||||||||||||||||
31-Mar | $ | 8,639.80 | $ | 8,986.70 | ||||||||||||||||||||
There were no goodwill impairment losses recorded in the first three months of 2015 or 2014 and there are no accumulated goodwill impairment losses. Goodwill for acquisitions completed in 2015 and 2014 includes $1.8 million and $10.9 million, respectively, of goodwill attributed to noncontrolling interests in the acquired businesses. |
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt [Abstract] | ||||||||
Debt | Debt | |||||||
Lines of Credit | ||||||||
We maintain a $2.5 billion line of credit (“Credit Agreement”) expiring on July 31, 2019. We have the ability to classify borrowings under the Credit Agreement as long-term. Additionally, we can issue up to $2.0 billion of commercial paper. At March 31, 2015 and December 31, 2014 there were no outstanding commercial paper issuances or borrowings under the Credit Agreement. We also have uncommitted credit lines aggregating $908.9 million and $937.8 million at March 31, 2015 and December 31, 2014, respectively. | ||||||||
Available and unused credit lines at March 31, 2015 and December 31, 2014 were (in millions): | ||||||||
2015 | 2014 | |||||||
Credit Agreement | $ | 2,500.00 | $ | 2,500.00 | ||||
Uncommitted credit lines | 908.9 | 937.8 | ||||||
Available and unused credit lines | $ | 3,408.90 | $ | 3,437.80 | ||||
The Credit Agreement 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 (under the Credit Agreement, EBITDA is defined as earnings before interest, taxes, depreciation and amortization) and an Interest Coverage Ratio of consolidated EBITDA to interest expense of at least 5 times for the most recently ended 12-month period. At March 31, 2015, we were in compliance with these covenants, as our Leverage Ratio was 2.0 times and our Interest Coverage Ratio was 12.9 times. The Credit Agreement does not limit our ability to declare or pay dividends or repurchase our common stock. | ||||||||
Short-Term Borrowings | ||||||||
Short-term borrowings of $9.6 million and $7.2 million at March 31, 2015 and December 31, 2014, respectively, are comprised of bank overdrafts and credit lines of our international subsidiaries. The bank overdrafts and credit lines are treated as unsecured loans pursuant to the agreements supporting the facilities. Due to the short-term nature of these instruments, carrying value approximates fair value. | ||||||||
Long-Term Notes Payable | ||||||||
Long-term notes payable at March 31, 2015 and December 31, 2014 were (in millions): | ||||||||
2015 | 2014 | |||||||
5.9% Senior Notes due 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||
6.25% Senior Notes due 2019 | 500 | 500 | ||||||
4.45% Senior Notes due 2020 | 1,000.00 | 1,000.00 | ||||||
3.625% Senior Notes due 2022 | 1,250.00 | 1,250.00 | ||||||
3.65% Senior Notes due 2024 | 750 | 750 | ||||||
Other notes and loans | 0.3 | 0.5 | ||||||
4,500.30 | 4,500.50 | |||||||
Unamortized premium (discount) on Senior Notes, net | 10.9 | 11.1 | ||||||
Adjustment to carrying value for interest rate swaps | 82.9 | 51.4 | ||||||
4,594.10 | 4,563.00 | |||||||
Current portion of debt | (0.3 | ) | (0.4 | ) | ||||
Long-term notes payable | $ | 4,593.80 | $ | 4,562.60 | ||||
In 2014, we entered into receive fixed pay floating interest rate swaps on the $1.25 billion principal amount of our 3.625% Senior Notes due 2022 (“2022 Notes”) and on the $1 billion principal amount of our 4.45% Senior Notes due 2020 (“2020 Notes”). The interest rate swaps hedge the risk of changes in fair value of the 2022 Notes and the 2020 Notes attributable to changes in the benchmark LIBOR interest rate. Under the swap contracts, we receive fixed interest payments equal to the coupon interest rate on the 2022 Notes and the 2020 Notes and pay a variable interest rate on the total principal amount of the notes, equal to three month LIBOR in arrears, plus a spread of 1.05% on the 2022 Notes and a spread of 2.16% on the 2020 Notes. The swaps qualify and are designated as fair value hedges on the 2022 Notes and 2020 Notes, respectively. The swaps have the economic effect of converting the 2022 Notes and the 2020 Notes from fixed rate debt to floating rate debt. Gains and losses attributed to changes in the fair value of the interest rate swaps substantially offset changes in the fair value of the 2022 Notes and the 2020 Notes attributed to changes in the benchmark interest rate. The net interest settlement is recorded in interest expense. At March 31, 2015 and December 31, 2014, we recorded a receivable, which is included in other assets, of $76.0 million and $42.7 million, respectively, representing the fair value of the swaps that was substantially offset by the increase in the carrying value of the 2022 Notes and the 2020 Notes reflecting the change in fair value of the notes. Accordingly, any hedge ineffectiveness was not material to our results of operations. |
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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. 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. 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. | ||||||||||||
Revenue and long-lived assets and goodwill by geographic region as of and for the three months ended March 31, 2015 and 2014 were (in millions): | ||||||||||||
Americas | EMEA | Asia Pacific | ||||||||||
2015 | ||||||||||||
Revenue | $ | 2,151.00 | $ | 961.4 | $ | 356.8 | ||||||
Long-lived assets and goodwill | 6,136.30 | 2,635.60 | 549.4 | |||||||||
2014 | ||||||||||||
Revenue | $ | 2,081.30 | $ | 1,061.60 | $ | 359.3 | ||||||
Long-lived assets and goodwill | 6,101.20 | 3,009.00 | 608.5 | |||||||||
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 months ended March 31, 2015 and 2014 was $1,958.2 million and $1,871.8 million, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes |
Our effective tax rate decreased to 32.8% for the three months ended March 31, 2015 from 33.8% for the three months ended March 31, 2014. The decrease is primarily due to a legal entity restructuring of our European operations. As a result of the reorganization, a certain portion of the not indefinitely reinvested foreign earnings in the affected countries are subject to lower effective tax rates. | |
At March 31, 2015, our unrecognized tax benefits were $134.7 million. Of this amount, approximately $57.1 million would affect our effective tax rate upon resolution of the uncertain tax positions. |
Pension_and_Other_Postemployme
Pension and Other Postemployment Benefits | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 cost for the three months ended March 31, 2015 and 2014 were (in millions): | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 1.2 | $ | 1.7 | ||||
Interest cost | 1.7 | 1.7 | ||||||
Expected return on plan assets | (0.7 | ) | (0.7 | ) | ||||
Amortization of prior service cost | 1.1 | 1.1 | ||||||
Amortization of actuarial (gains) losses | 1.4 | 0.5 | ||||||
$ | 4.7 | $ | 4.3 | |||||
We contributed $0.4 million and $0.2 million to our defined benefit pension plans in the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Postemployment Arrangements | ||||||||
The components of net periodic benefit cost for the three months ended March 31, 2015 and 2014 were (in millions): | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 1.2 | $ | 1 | ||||
Interest cost | 1.1 | 1.1 | ||||||
Amortization of prior service cost | 0.8 | 0.5 | ||||||
Amortization of actuarial (gains) losses | 0.4 | 0.2 | ||||||
$ | 3.5 | $ | 2.8 | |||||
Operating_Expenses
Operating Expenses | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Operating Expenses [Abstract] | ||||||||
Operating Expenses | Operating Expenses | |||||||
Operating expenses for the three months ended March 31, 2015 and 2014 were comprised of (in millions): | ||||||||
2015 | 2014 | |||||||
Salary and service costs | $ | 2,620.80 | $ | 2,622.80 | ||||
Office and general expenses | 470.7 | 496.7 | ||||||
$ | 3,091.50 | $ | 3,119.50 | |||||
For the three months ended March 31, 2014, we incurred $7.0 million of expenses in connection with the proposed merger with Publicis Groupe S.A.(“Publicis”), which were primarily comprised of professional fees. On May 8, 2014, the proposed merger with Publicis was terminated. |
Supplemental_Cash_Flow_Data
Supplemental Cash Flow Data | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Data [Abstract] | ||||||||
Supplemental Cash Flow Data | Supplemental Cash Flow Data | |||||||
The change in operating capital for the three months ended March 31, 2015 and 2014 was (in millions): | ||||||||
2015 | 2014 | |||||||
(Increase) decrease in accounts receivable | $ | 467.3 | $ | 627.4 | ||||
(Increase) decrease in work in process and other current assets | (332.1 | ) | (188.5 | ) | ||||
Increase (decrease) in accounts payable | (697.8 | ) | (993.1 | ) | ||||
Increase (decrease) in customer advances and other current liabilities | 26.1 | (51.4 | ) | |||||
Change in other assets and liabilities, net | (23.0 | ) | (136.7 | ) | ||||
$ | (559.5 | ) | $ | (742.3 | ) | |||
Income taxes paid | $ | 144.3 | $ | 165.9 | ||||
Interest paid | $ | 35.2 | $ | 41.6 | ||||
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities |
In the ordinary course of business, we are involved in various other legal proceedings. We do not presently expect that these other proceedings will have a material adverse effect on our results of operations or financial position. |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 three months ended March 31, 2015 and 2014 were (in millions): | ||||||||||||||||||||
2015 | Unrealized | Unrealized | Defined Benefit Pension and Postemployment Plans | Foreign | Total | |||||||||||||||
Gain (Loss) on Cash Flow Hedge | Gain (Loss) on Available-for-Sale Securities | Currency Translation | ||||||||||||||||||
1-Jan | $ | — | $ | (1.2 | ) | $ | (92.1 | ) | $ | (524.9 | ) | $ | (618.2 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (2.5 | ) | 0.2 | — | (318.4 | ) | (320.7 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 2.2 | — | 2.2 | |||||||||||||||
Other comprehensive income (loss) | (2.5 | ) | 0.2 | 2.2 | (318.4 | ) | (318.5 | ) | ||||||||||||
31-Mar | $ | (2.5 | ) | $ | (1.0 | ) | $ | (89.9 | ) | $ | (843.3 | ) | $ | (936.7 | ) | |||||
2014 | ||||||||||||||||||||
1-Jan | $ | — | $ | (1.6 | ) | $ | (68.8 | ) | $ | (121.2 | ) | $ | (191.6 | ) | ||||||
Other comprehensive income (loss) before reclassifications | — | 0.1 | — | 20.4 | 20.5 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 1.4 | — | 1.4 | |||||||||||||||
Other comprehensive income (loss) | — | 0.1 | 1.4 | 20.4 | 21.9 | |||||||||||||||
31-Mar | $ | — | $ | (1.5 | ) | $ | (67.4 | ) | $ | (100.8 | ) | $ | (169.7 | ) | ||||||
On March 26, 2015, we entered into a $1 billion receive floating (3 Month LIBOR) pay fixed (2.3209%) forward-starting 10-year interest rate swap in connection with the upcoming maturity of our $1 billion 5.9% Senior Notes on April 15, 2016. The swap mitigates the risk of changes in the semi-annual interest payments during the period March 26, 2015 to May 2, 2016, the contractual termination date of the swap, and effectively locks in the fixed interest rate, excluding the effect of our credit spread, on any refinancing. Accordingly, the swap is designated as a cash flow hedge of the semi-annual interest rate payments attributable to changes in the benchmark interest rate. We expect that the swap will have almost no ineffectiveness and is carried on the balance sheet at fair value and any net gain or loss on the swap is recorded in accumulated other comprehensive income. Upon termination of the swap, any gain or loss will be amortized to interest expense or will be recorded in our results of operations if the refinancing is not completed. At March 31, 2015, we recorded a liability of $4.2 million, which is included in long-term liabilities and the related loss of $2.5 million, net of income taxes, in other comprehensive income. | ||||||||||||||||||||
Reclassifications from accumulated other comprehensive income (loss) for the three months ended March 31, 2015 and 2014 were (in millions): | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Amortization of defined benefit pension and postemployment plans: | ||||||||||||||||||||
Prior service cost | $ | 1.9 | $ | 1.6 | ||||||||||||||||
Actuarial (gains) losses | 1.8 | 0.7 | ||||||||||||||||||
Net periodic benefit cost (see Note 8) | 3.7 | 2.3 | ||||||||||||||||||
Income taxes | 1.5 | 0.9 | ||||||||||||||||||
Periodic benefit cost, net of income tax | $ | 2.2 | $ | 1.4 | ||||||||||||||||
Fair_Value
Fair Value | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value [Abstract] | ||||||||||||||||
Fair Value | Fair Value | |||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 were (in millions): | ||||||||||||||||
2015 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,526.70 | $ | 1,526.70 | ||||||||||||
Short-term investments | 5.7 | 5.7 | ||||||||||||||
Available-for-sale securities | 5 | 5 | ||||||||||||||
Interest rate and foreign currency derivative instruments | $ | 76.5 | 76.5 | |||||||||||||
Liabilities: | ||||||||||||||||
Interest rate and foreign currency derivative instruments | $ | 4.9 | $ | 4.9 | ||||||||||||
Contingent purchase price obligations | $ | 332.5 | 332.5 | |||||||||||||
2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 2,388.10 | $ | 2,388.10 | ||||||||||||
Short-term investments | 2.2 | 2.2 | ||||||||||||||
Available-for-sale securities | 4.9 | 4.9 | ||||||||||||||
Interest rate and foreign currency derivative instruments | $ | 43.1 | 43.1 | |||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency derivative instruments | $ | 0.4 | $ | 0.4 | ||||||||||||
Contingent purchase price obligations | $ | 300.7 | 300.7 | |||||||||||||
The changes in Level 3 contingent purchase price obligations for the three months ended March 31, 2015 and 2014 were (in millions): | ||||||||||||||||
2015 | 2014 | |||||||||||||||
1-Jan | $ | 300.7 | $ | 220.2 | ||||||||||||
Acquisitions | 46.3 | 43.2 | ||||||||||||||
Revaluation and interest | 2.2 | (0.8 | ) | |||||||||||||
Payments | (1.8 | ) | (7.8 | ) | ||||||||||||
Foreign currency translation | (14.9 | ) | 2 | |||||||||||||
31-Mar | $ | 332.5 | $ | 256.8 | ||||||||||||
The carrying amount and fair value of our financial instruments at March 31, 2015 and December 31, 2014 were (in millions): | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,526.70 | $ | 1,526.70 | $ | 2,388.10 | $ | 2,388.10 | ||||||||
Short-term investments | 5.7 | 5.7 | 2.2 | 2.2 | ||||||||||||
Available-for-sale securities | 5 | 5 | 4.9 | 4.9 | ||||||||||||
Interest rate and foreign currency derivative instruments | 76.5 | 76.5 | 43.1 | 43.1 | ||||||||||||
Cost method investments | 20.8 | 20.8 | 21.8 | 21.8 | ||||||||||||
Liabilities: | ||||||||||||||||
Short-term borrowings | $ | 9.6 | $ | 9.6 | $ | 7.2 | $ | 7.2 | ||||||||
Interest rate and foreign currency derivative instruments | 4.9 | 4.9 | 0.4 | 0.4 | ||||||||||||
Contingent purchase price obligations | 332.5 | 332.5 | 300.7 | 300.7 | ||||||||||||
Debt | 4,594.10 | 4,820.90 | 4,563.00 | 4,754.90 | ||||||||||||
The estimated fair value of the foreign currency and interest rate derivative instruments is determined using model-derived valuations, taking into consideration foreign currency rates for the foreign currency derivatives and readily observable inputs for LIBOR interest rates and yield curves to derive the present value of the future cash flows for the interest rate swap derivatives and counterparty credit risk for each. The estimated fair value of the contingent purchase price obligations is calculated in accordance with the terms of each acquisition agreement and is discounted. The fair value of debt is based on quoted market prices. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
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 condensed consolidated financial statements. |
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Net Income per Common Share [Abstract] | ||||||||
Computations of Basic and Diluted Net Income per Common Share - Omnicom Group Inc. | The computation of basic and diluted net income per common share for the three months ended March 31, 2015 and 2014 was (in millions, except per share amounts): | |||||||
2015 | 2014 | |||||||
Net Income Available for Common Shares: | ||||||||
Net income - Omnicom Group Inc. | $ | 209.1 | $ | 205.5 | ||||
Net income allocated to participating securities | (2.8 | ) | (4.1 | ) | ||||
$ | 206.3 | $ | 201.4 | |||||
Weighted Average Shares: | ||||||||
Basic | 246.4 | 259.1 | ||||||
Dilutive stock options and restricted shares | 1 | 2.3 | ||||||
Diluted | 247.4 | 261.4 | ||||||
Anti-dilutive stock options and restricted shares | 0.1 | 0.1 | ||||||
Net Income per Common Share - Omnicom Group Inc.: | ||||||||
Basic | $ | 0.84 | $ | 0.78 | ||||
Diluted | $ | 0.83 | $ | 0.77 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and intangible assets at March 31, 2015 and December 31, 2014 were (in millions): | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
Goodwill | $ | 9,170.60 | $ | (530.8 | ) | $ | 8,639.80 | $ | 9,377.60 | $ | (555.4 | ) | $ | 8,822.20 | ||||||||||
Intangible assets: | ||||||||||||||||||||||||
Purchased and internally developed software | $ | 296.5 | $ | (222.1 | ) | $ | 74.4 | $ | 298.7 | $ | (221.4 | ) | $ | 77.3 | ||||||||||
Customer related and other | 691.1 | (398.3 | ) | 292.8 | 702.1 | (390.0 | ) | 312.1 | ||||||||||||||||
$ | 987.6 | $ | (620.4 | ) | $ | 367.2 | $ | 1,000.80 | $ | (611.4 | ) | $ | 389.4 | |||||||||||
Changes in Goodwill | Changes in goodwill for the three months ended March 31, 2015 and 2014 were (in millions): | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
1-Jan | $ | 8,822.20 | $ | 8,916.00 | ||||||||||||||||||||
Acquisitions | 65.1 | 51.4 | ||||||||||||||||||||||
Dispositions | (0.3 | ) | (1.2 | ) | ||||||||||||||||||||
Foreign currency translation | (247.2 | ) | 20.5 | |||||||||||||||||||||
31-Mar | $ | 8,639.80 | $ | 8,986.70 | ||||||||||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt [Abstract] | ||||||||
Available and Unused Lines of Credit | Available and unused credit lines at March 31, 2015 and December 31, 2014 were (in millions): | |||||||
2015 | 2014 | |||||||
Credit Agreement | $ | 2,500.00 | $ | 2,500.00 | ||||
Uncommitted credit lines | 908.9 | 937.8 | ||||||
Available and unused credit lines | $ | 3,408.90 | $ | 3,437.80 | ||||
Long-Term Notes Payable | Long-term notes payable at March 31, 2015 and December 31, 2014 were (in millions): | |||||||
2015 | 2014 | |||||||
5.9% Senior Notes due 2016 | $ | 1,000.00 | $ | 1,000.00 | ||||
6.25% Senior Notes due 2019 | 500 | 500 | ||||||
4.45% Senior Notes due 2020 | 1,000.00 | 1,000.00 | ||||||
3.625% Senior Notes due 2022 | 1,250.00 | 1,250.00 | ||||||
3.65% Senior Notes due 2024 | 750 | 750 | ||||||
Other notes and loans | 0.3 | 0.5 | ||||||
4,500.30 | 4,500.50 | |||||||
Unamortized premium (discount) on Senior Notes, net | 10.9 | 11.1 | ||||||
Adjustment to carrying value for interest rate swaps | 82.9 | 51.4 | ||||||
4,594.10 | 4,563.00 | |||||||
Current portion of debt | (0.3 | ) | (0.4 | ) | ||||
Long-term notes payable | $ | 4,593.80 | $ | 4,562.60 | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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 months ended March 31, 2015 and 2014 were (in millions): | |||||||||||
Americas | EMEA | Asia Pacific | ||||||||||
2015 | ||||||||||||
Revenue | $ | 2,151.00 | $ | 961.4 | $ | 356.8 | ||||||
Long-lived assets and goodwill | 6,136.30 | 2,635.60 | 549.4 | |||||||||
2014 | ||||||||||||
Revenue | $ | 2,081.30 | $ | 1,061.60 | $ | 359.3 | ||||||
Long-lived assets and goodwill | 6,101.20 | 3,009.00 | 608.5 | |||||||||
Pension_and_Other_Postemployme1
Pension and Other Postemployment Benefits (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Defined Benefit Pension Plans [Member] | ||||||||
Components of Net Periodic Benefit Cost | Defined Benefit Pension Plans | |||||||
The components of net periodic benefit cost for the three months ended March 31, 2015 and 2014 were (in millions): | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 1.2 | $ | 1.7 | ||||
Interest cost | 1.7 | 1.7 | ||||||
Expected return on plan assets | (0.7 | ) | (0.7 | ) | ||||
Amortization of prior service cost | 1.1 | 1.1 | ||||||
Amortization of actuarial (gains) losses | 1.4 | 0.5 | ||||||
$ | 4.7 | $ | 4.3 | |||||
Postemployment Arrangements [Member] | ||||||||
Components of Net Periodic Benefit Cost | Postemployment Arrangements | |||||||
The components of net periodic benefit cost for the three months ended March 31, 2015 and 2014 were (in millions): | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 1.2 | $ | 1 | ||||
Interest cost | 1.1 | 1.1 | ||||||
Amortization of prior service cost | 0.8 | 0.5 | ||||||
Amortization of actuarial (gains) losses | 0.4 | 0.2 | ||||||
$ | 3.5 | $ | 2.8 | |||||
Operating_Expenses_Tables
Operating Expenses (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Operating Expenses [Abstract] | ||||||||
Components of Operating Expenses | Operating expenses for the three months ended March 31, 2015 and 2014 were comprised of (in millions): | |||||||
2015 | 2014 | |||||||
Salary and service costs | $ | 2,620.80 | $ | 2,622.80 | ||||
Office and general expenses | 470.7 | 496.7 | ||||||
$ | 3,091.50 | $ | 3,119.50 | |||||
For the three months ended March 31, 2014, we incurred $7.0 million of expenses in connection with the proposed merger with Publicis Groupe S.A.(“Publicis”), which were primarily comprised of professional fees. On May 8, 2014, the proposed merger with Publicis was terminated. |
Supplemental_Cash_Flow_Data_Ta
Supplemental Cash Flow Data (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Data [Abstract] | ||||||||
Change in Operating Capital | The change in operating capital for the three months ended March 31, 2015 and 2014 was (in millions): | |||||||
2015 | 2014 | |||||||
(Increase) decrease in accounts receivable | $ | 467.3 | $ | 627.4 | ||||
(Increase) decrease in work in process and other current assets | (332.1 | ) | (188.5 | ) | ||||
Increase (decrease) in accounts payable | (697.8 | ) | (993.1 | ) | ||||
Increase (decrease) in customer advances and other current liabilities | 26.1 | (51.4 | ) | |||||
Change in other assets and liabilities, net | (23.0 | ) | (136.7 | ) | ||||
$ | (559.5 | ) | $ | (742.3 | ) | |||
Income taxes paid | $ | 144.3 | $ | 165.9 | ||||
Interest paid | $ | 35.2 | $ | 41.6 | ||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 three months ended March 31, 2015 and 2014 were (in millions): | |||||||||||||||||||
2015 | Unrealized | Unrealized | Defined Benefit Pension and Postemployment Plans | Foreign | Total | |||||||||||||||
Gain (Loss) on Cash Flow Hedge | Gain (Loss) on Available-for-Sale Securities | Currency Translation | ||||||||||||||||||
1-Jan | $ | — | $ | (1.2 | ) | $ | (92.1 | ) | $ | (524.9 | ) | $ | (618.2 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (2.5 | ) | 0.2 | — | (318.4 | ) | (320.7 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 2.2 | — | 2.2 | |||||||||||||||
Other comprehensive income (loss) | (2.5 | ) | 0.2 | 2.2 | (318.4 | ) | (318.5 | ) | ||||||||||||
31-Mar | $ | (2.5 | ) | $ | (1.0 | ) | $ | (89.9 | ) | $ | (843.3 | ) | $ | (936.7 | ) | |||||
2014 | ||||||||||||||||||||
1-Jan | $ | — | $ | (1.6 | ) | $ | (68.8 | ) | $ | (121.2 | ) | $ | (191.6 | ) | ||||||
Other comprehensive income (loss) before reclassifications | — | 0.1 | — | 20.4 | 20.5 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 1.4 | — | 1.4 | |||||||||||||||
Other comprehensive income (loss) | — | 0.1 | 1.4 | 20.4 | 21.9 | |||||||||||||||
31-Mar | $ | — | $ | (1.5 | ) | $ | (67.4 | ) | $ | (100.8 | ) | $ | (169.7 | ) | ||||||
Reclassifications from accumulated other comprehensive income (loss) | Reclassifications from accumulated other comprehensive income (loss) for the three months ended March 31, 2015 and 2014 were (in millions): | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Amortization of defined benefit pension and postemployment plans: | ||||||||||||||||||||
Prior service cost | $ | 1.9 | $ | 1.6 | ||||||||||||||||
Actuarial (gains) losses | 1.8 | 0.7 | ||||||||||||||||||
Net periodic benefit cost (see Note 8) | 3.7 | 2.3 | ||||||||||||||||||
Income taxes | 1.5 | 0.9 | ||||||||||||||||||
Periodic benefit cost, net of income tax | $ | 2.2 | $ | 1.4 | ||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value [Abstract] | ||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 were (in millions): | |||||||||||||||
2015 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,526.70 | $ | 1,526.70 | ||||||||||||
Short-term investments | 5.7 | 5.7 | ||||||||||||||
Available-for-sale securities | 5 | 5 | ||||||||||||||
Interest rate and foreign currency derivative instruments | $ | 76.5 | 76.5 | |||||||||||||
Liabilities: | ||||||||||||||||
Interest rate and foreign currency derivative instruments | $ | 4.9 | $ | 4.9 | ||||||||||||
Contingent purchase price obligations | $ | 332.5 | 332.5 | |||||||||||||
2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 2,388.10 | $ | 2,388.10 | ||||||||||||
Short-term investments | 2.2 | 2.2 | ||||||||||||||
Available-for-sale securities | 4.9 | 4.9 | ||||||||||||||
Interest rate and foreign currency derivative instruments | $ | 43.1 | 43.1 | |||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency derivative instruments | $ | 0.4 | $ | 0.4 | ||||||||||||
Contingent purchase price obligations | $ | 300.7 | 300.7 | |||||||||||||
Changes in Level 3 Contingent Purchase Price Obligations | The changes in Level 3 contingent purchase price obligations for the three months ended March 31, 2015 and 2014 were (in millions): | |||||||||||||||
2015 | 2014 | |||||||||||||||
1-Jan | $ | 300.7 | $ | 220.2 | ||||||||||||
Acquisitions | 46.3 | 43.2 | ||||||||||||||
Revaluation and interest | 2.2 | (0.8 | ) | |||||||||||||
Payments | (1.8 | ) | (7.8 | ) | ||||||||||||
Foreign currency translation | (14.9 | ) | 2 | |||||||||||||
31-Mar | $ | 332.5 | $ | 256.8 | ||||||||||||
Carrying Amounts and Fair Value of Financial Instruments | The carrying amount and fair value of our financial instruments at March 31, 2015 and December 31, 2014 were (in millions): | |||||||||||||||
2015 | 2014 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,526.70 | $ | 1,526.70 | $ | 2,388.10 | $ | 2,388.10 | ||||||||
Short-term investments | 5.7 | 5.7 | 2.2 | 2.2 | ||||||||||||
Available-for-sale securities | 5 | 5 | 4.9 | 4.9 | ||||||||||||
Interest rate and foreign currency derivative instruments | 76.5 | 76.5 | 43.1 | 43.1 | ||||||||||||
Cost method investments | 20.8 | 20.8 | 21.8 | 21.8 | ||||||||||||
Liabilities: | ||||||||||||||||
Short-term borrowings | $ | 9.6 | $ | 9.6 | $ | 7.2 | $ | 7.2 | ||||||||
Interest rate and foreign currency derivative instruments | 4.9 | 4.9 | 0.4 | 0.4 | ||||||||||||
Contingent purchase price obligations | 332.5 | 332.5 | 300.7 | 300.7 | ||||||||||||
Debt | 4,594.10 | 4,820.90 | 4,563.00 | 4,754.90 | ||||||||||||
Net_Income_Per_Common_Share_De
Net Income Per Common Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Income Available for Common Shares: | ||
Net income - Omnicom Group Inc. | $209.10 | $205.50 |
Net income allocated to participating securities | 2.8 | 4.1 |
Net income available for common shares | $206.30 | $201.40 |
Weighted Average Shares: | ||
Basic | 246.4 | 259.1 |
Dilutive stock options and restricted shares | 1 | 2.3 |
Diluted | 247.4 | 261.4 |
Anti-dilutive stock options and restricted shares | 0.1 | 0.1 |
Net Income per Common Share - Omnicom Group Inc.: | ||
Basic | $0.84 | $0.78 |
Diluted | $0.83 | $0.77 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Goodwill, Gross Carrying Value | $9,170.60 | $9,377.60 | |
Goodwill, Accumulated Amortization | -530.8 | -555.4 | |
Goodwill, Net Carrying Value | 8,639.80 | 8,986.70 | |
Intangible assets:, Gross Carrying Value | 987.6 | 1,000.80 | |
Intangible assets:, Accumulated Amortization | -620.4 | -611.4 | |
Intangible assets:, Net Carrying Value | 367.2 | 389.4 | |
Goodwill [Roll Forward] | |||
Goodwill, January 1 | 8,822.20 | 8,916 | |
Goodwill, Acquisitions | 65.1 | 51.4 | |
Goodwill, Dispositions | -0.3 | -1.2 | |
Goodwill, Foreign currency translation | -247.2 | 20.5 | |
Goodwill, March 31 | 8,639.80 | 8,986.70 | |
Goodwill, impairment losses | 0 | ||
Goodwill, accumulated impairment losses | 0 | ||
Goodwill, acquisitions of noncontrolling interests | 1.8 | 10.9 | |
Purchased and internally developed software | |||
Intangible assets:, Gross Carrying Value | 296.5 | 298.7 | |
Intangible assets:, Accumulated Amortization | -222.1 | -221.4 | |
Intangible assets:, Net Carrying Value | 74.4 | 77.3 | |
Customer related and other | |||
Intangible assets:, Gross Carrying Value | 691.1 | 702.1 | |
Intangible assets:, Accumulated Amortization | -398.3 | -390 | |
Intangible assets:, Net Carrying Value | $292.80 | $312.10 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Lines of Credit [Abstract] | ||
Available and unused credit lines | $3,408,900,000 | $3,437,800,000 |
Short-Term Borrowings [Abstract] | ||
Short-term borrowings | 9,600,000 | 7,200,000 |
Long-Term Notes Payable [Abstract] | ||
Long-term notes payable, carrying amount | 4,500,300,000 | 4,500,500,000 |
Unamortized premium (discount) on Senior Notes, net | 10,900,000 | 11,100,000 |
Adjustment to carrying value for interest rate swaps | 82,900,000 | 51,400,000 |
Long-term notes payable, total | 4,594,100,000 | 4,563,000,000 |
Long-term notes payable, current portion | -300,000 | -400,000 |
Long-Term Notes Payable | 4,593,800,000 | 4,562,600,000 |
Interest rate swaps, fair value | 76,000,000 | 42,700,000 |
Credit Agreement expiring July 31, 2019 [Member] | ||
Lines of Credit [Abstract] | ||
Credit Agreement, maximum borrowing capacity | 2,500,000,000 | |
Credit Agreement, expiration date | 31-Jul-19 | |
Available and unused credit lines | 2,500,000,000 | 2,500,000,000 |
Credit Agreement, covenant terms | The Credit Agreement 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 (under the Credit Agreement, EBITDA is defined as earnings before interest, taxes, depreciation and amortization) and an Interest Coverage Ratio of consolidated EBITDA to interest expense of at least 5 times for the most recently ended 12-month period. | |
Credit Agreement, covenant compliance | At March 31, 2015, we were in compliance with these covenants, as our Leverage Ratio was 2.0 times and our Interest Coverage Ratio was 12.9 times. | |
Credit Agreement expiring July 31, 2019 [Member] | Commercial Paper [Member] | ||
Lines of Credit [Abstract] | ||
Credit Agreement, maximum borrowing capacity | 2,000,000,000 | |
Uncommitted lines of credit [Member] | ||
Lines of Credit [Abstract] | ||
Available and unused credit lines | 908,900,000 | 937,800,000 |
5.9% Senior Notes due 2016 | ||
Long-Term Notes Payable [Abstract] | ||
Long-term notes payable, carrying amount | 1,000,000,000 | 1,000,000,000 |
Interest rate | 5.90% | |
Maturity date | 15-Apr-16 | |
6.25% Senior Notes due 2019 | ||
Long-Term Notes Payable [Abstract] | ||
Long-term notes payable, carrying amount | 500,000,000 | 500,000,000 |
Interest rate | 6.25% | |
Maturity date | 15-Jul-19 | |
4.45% Senior Notes due 2020 | ||
Long-Term Notes Payable [Abstract] | ||
Long-term notes payable, carrying amount | 1,000,000,000 | 1,000,000,000 |
Interest rate | 4.45% | |
Maturity date | 15-Aug-20 | |
3.625% Senior Notes due 2022 | ||
Long-Term Notes Payable [Abstract] | ||
Long-term notes payable, carrying amount | 1,250,000,000 | 1,250,000,000 |
Interest rate | 3.63% | |
Maturity date | 1-May-22 | |
3.65% Senior Notes due 2024 | ||
Long-Term Notes Payable [Abstract] | ||
Long-term notes payable, carrying amount | 750,000,000 | 750,000,000 |
Interest rate | 3.65% | |
Maturity date | 1-Nov-24 | |
Other notes and loans | ||
Long-Term Notes Payable [Abstract] | ||
Long-term notes payable, carrying amount | 300,000 | 500,000 |
Interest Rate Swaps on 2022 Notes [Member] | ||
Long-Term Notes Payable [Abstract] | ||
Interest rate swaps, hedged amount | 1,250,000,000 | |
Interest Rate Swaps on 2020 Notes [Member] | ||
Long-Term Notes Payable [Abstract] | ||
Interest rate swaps, hedged amount | $1,000,000,000 | |
LIBOR [Member] | Interest Rate Swaps on 2022 Notes [Member] | ||
Long-Term Notes Payable [Abstract] | ||
Interest rate swaps, spread | 1.05% | |
LIBOR [Member] | Interest Rate Swaps on 2020 Notes [Member] | ||
Long-Term Notes Payable [Abstract] | ||
Interest rate swaps, spread | 2.16% |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | $3,469.20 | $3,502.20 |
Americas | ||
Revenue | 2,151 | 2,081.30 |
Long-lived assets and goodwill | 6,136.30 | 6,101.20 |
UNITED STATES | ||
Revenue | 1,958.20 | 1,871.80 |
EMEA | ||
Revenue | 961.4 | 1,061.60 |
Long-lived assets and goodwill | 2,635.60 | 3,009 |
Asia Pacific | ||
Revenue | 356.8 | 359.3 |
Long-lived assets and goodwill | $549.40 | $608.50 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Rate | Rate | |
Income Taxes [Abstract] | ||
Effective tax rate | 32.80% | 33.80% |
Unrecognized tax benefits | $134.70 | |
Unrecognized tax benefits that would impact effective tax rate | $57.10 |
Pension_and_Other_Postemployme2
Pension and Other Postemployment Benefits (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Pension Plans [Member] | ||
Components of Net Periodic Benefit Cost [Abstract] | ||
Service cost | $1.20 | $1.70 |
Interest cost | 1.7 | 1.7 |
Expected return on plan assets | -0.7 | -0.7 |
Amortization of prior service cost | 1.1 | 1.1 |
Amortization of actuarial (gains) losses | 1.4 | 0.5 |
Net periodic benefit cost | 4.7 | 4.3 |
Defined benefit pension plans, contributions by employer | 0.4 | 0.2 |
Postemployment Arrangements [Member] | ||
Components of Net Periodic Benefit Cost [Abstract] | ||
Service cost | 1.2 | 1 |
Interest cost | 1.1 | 1.1 |
Amortization of prior service cost | 0.8 | 0.5 |
Amortization of actuarial (gains) losses | 0.4 | 0.2 |
Net periodic benefit cost | $3.50 | $2.80 |
Operating_Expenses_Details
Operating Expenses (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Expenses [Abstract] | ||
Salary and service costs | $2,620.80 | $2,622.80 |
Office and general expenses | 470.7 | 496.7 |
Operating expenses | 3,091.50 | 3,119.50 |
Merger expenses | $7 |
Supplemental_Cash_Flow_Data_De
Supplemental Cash Flow Data (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Change in Operating Capital [Abstract] | ||
(Increase) decrease in accounts receivable | $467.30 | $627.40 |
(Increase) decrease in work in process and other current assets | -332.1 | -188.5 |
Increase (decrease) in accounts payable | -697.8 | -993.1 |
Increase (decrease) in customer advances and other current liabilities | 26.1 | -51.4 |
Change in other assets and liabilities, net | -23 | -136.7 |
Change in operating capital | -559.5 | -742.3 |
Income taxes paid | 144.3 | 165.9 |
Interest paid | $35.20 | $41.60 |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
1-Jan | ($618,200,000) | ($191,600,000) |
Other comprehensive income (loss) before reclassifications | -320,700,000 | 20,500,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,200,000 | 1,400,000 |
Other comprehensive income (loss) | -318,500,000 | 21,900,000 |
31-Mar | -936,700,000 | -169,700,000 |
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | ||
Cash flow hedge liability, fair value | 4,200,000 | |
Unrealized Gain (Loss) on Cash Flow Hedge | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
1-Jan | 0 | |
Other comprehensive income (loss) before reclassifications | -2,500,000 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Other comprehensive income (loss) | -2,500,000 | 0 |
31-Mar | -2,500,000 | 0 |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
1-Jan | -1,200,000 | -1,600,000 |
Other comprehensive income (loss) before reclassifications | 200,000 | 100,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Other comprehensive income (loss) | 200,000 | 100,000 |
31-Mar | -1,000,000 | -1,500,000 |
Defined Benefit Pension and Postemployment Plans | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
1-Jan | -92,100,000 | -68,800,000 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,200,000 | 1,400,000 |
Other comprehensive income (loss) | 2,200,000 | 1,400,000 |
31-Mar | -89,900,000 | -67,400,000 |
Defined Benefit Pension and Postemployment Plans | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | ||
Prior service cost | 1,900,000 | 1,600,000 |
Actuarial (gains) losses | 1,800,000 | 700,000 |
Net periodic benefit cost (see Note 8) | 3,700,000 | 2,300,000 |
Income taxes | 1,500,000 | 900,000 |
Periodic benefit cost, net of income tax | 2,200,000 | 1,400,000 |
Foreign Currency Translation | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
1-Jan | -524,900,000 | -121,200,000 |
Other comprehensive income (loss) before reclassifications | -318,400,000 | 20,400,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Other comprehensive income (loss) | -318,400,000 | 20,400,000 |
31-Mar | -843,300,000 | -100,800,000 |
Cash Flow Hedge [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Abstract] | ||
Cash flow hedge, notional amount | $1,000,000,000 | |
Cash flow hedge, fixed interest rate | 2.32% | |
Cash flow hedge, inception date | 26-Mar-15 | |
Cash flow hedge, maturity date | 2-May-16 |
Fair_Value_Details
Fair Value (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Assets: | |||
Cash and cash equivalents | $1,526.70 | $2,388.10 | |
Short-term investments | 5.7 | 2.2 | |
Available-for-sale securities | 5 | 4.9 | |
Interest rate and foreign currency derivative instruments | 76.5 | 43.1 | |
Cost method investments | 20.8 | 21.8 | |
Liabilities: | |||
Short-term borrowings | 9.6 | 7.2 | |
Interest rate and foreign currency derivative instruments | 4.9 | 0.4 | |
Contingent purchase price obligations | 332.5 | 300.7 | |
Debt | 4,820.90 | 4,754.90 | |
Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | 1,526.70 | 2,388.10 | |
Short-term investments | 5.7 | 2.2 | |
Available-for-sale securities | 5 | 4.9 | |
Interest rate and foreign currency derivative instruments | 76.5 | 43.1 | |
Cost method investments | 20.8 | 21.8 | |
Liabilities: | |||
Short-term borrowings | 9.6 | 7.2 | |
Interest rate and foreign currency derivative instruments | 4.9 | 0.4 | |
Contingent purchase price obligations | 332.5 | 300.7 | |
Debt | 4,594.10 | 4,563 | |
Contingent purchase price obligations | |||
Changes in Level 3 Contingent Purchase Price Obligations [Roll Forward] | |||
1-Jan | 300.7 | 220.2 | |
Acquisitions | 46.3 | 43.2 | |
Revaluation and interest | -2.2 | 0.8 | |
Payments | -1.8 | -7.8 | |
Foreign currency translation | -14.9 | 2 | |
31-Mar | 332.5 | 256.8 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Cash and cash equivalents | 1,526.70 | 2,388.10 | |
Short-term investments | 5.7 | 2.2 | |
Available-for-sale securities | 5 | 4.9 | |
Interest rate and foreign currency derivative instruments | 76.5 | 43.1 | |
Liabilities: | |||
Foreign currency derivative instruments | 0.4 | ||
Interest rate and foreign currency derivative instruments | 4.9 | ||
Contingent purchase price obligations | 332.5 | 300.7 | |
Fair Value, Measurements, Recurring [Member] | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 1,526.70 | 2,388.10 | |
Short-term investments | 5.7 | 2.2 | |
Available-for-sale securities | 5 | 4.9 | |
Fair Value, Measurements, Recurring [Member] | Level 2 | |||
Assets: | |||
Interest rate and foreign currency derivative instruments | 76.5 | 43.1 | |
Liabilities: | |||
Foreign currency derivative instruments | 0.4 | ||
Interest rate and foreign currency derivative instruments | 4.9 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 | |||
Liabilities: | |||
Contingent purchase price obligations | $332.50 | $300.70 |