Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 11, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | OMNICOM GROUP INC. | |
Entity Central Index Key | 29,989 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 224,372,758 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | |||
Cash and cash equivalents | $ 1,913.3 | $ 3,796 | $ 3,002.2 |
Short-term investments, at cost | 5.4 | 0.4 | |
Accounts receivable, net of allowance for doubtful accounts of $24.7 and $32.1 | 6,760.5 | 8,083.8 | |
Work in process | 1,353.5 | 1,110.6 | |
Other current assets | 1,197.4 | 1,125.2 | |
Total Current Assets | 11,230.1 | 14,116 | |
Property and Equipment at cost, less accumulated depreciation of $1,275.8 and $1,279.2 | 697.2 | 690.9 | |
Equity Method Investments | 120.3 | 120.3 | |
Goodwill | 9,442.6 | 9,337.5 | 8,976.1 |
Intangible Assets, net of accumulated amortization of $727.1 and $879.9 | 377.7 | 368.4 | |
Other Assets | 301.6 | 298.1 | |
TOTAL ASSETS | 22,169.5 | 24,931.2 | |
Current Liabilities: | |||
Accounts payable | 9,568.1 | 11,574.6 | |
Customer advances | 1,147.1 | 1,266.7 | |
Short-term debt | 20.8 | 11.8 | |
Taxes payable | 263.4 | 330 | |
Other current liabilities | 1,618.5 | 1,925.8 | |
Total Current Liabilities | 12,617.9 | 15,108.9 | |
Long-Term Debt | 4,866.8 | 4,912.9 | |
Long-Term Liabilities | 1,196.4 | 1,091.2 | |
Deferred Tax Liabilities | 451 | 483.6 | |
Commitments and Contingent Liabilities (Note 11) | |||
Temporary Equity - Redeemable Noncontrolling Interests | 178.5 | 182.4 | |
Shareholders’ Equity: | |||
Preferred stock | 0 | 0 | |
Common stock | 44.6 | 44.6 | |
Additional paid-in capital | 811.5 | 828.3 | |
Retained earnings | 6,587.7 | 6,210.6 | |
Accumulated other comprehensive income (loss) | (1,167.3) | (963) | $ (1,356) |
Treasury stock, at cost | (3,955.1) | (3,505.4) | |
Total Shareholders’ Equity | 2,321.4 | 2,615.1 | |
Noncontrolling interests | 537.5 | 537.1 | |
Total Equity | 2,858.9 | 3,152.2 | |
TOTAL LIABILITIES AND EQUITY | $ 22,169.5 | $ 24,931.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets (Parenthetical) [Abstract] | ||
Allowance for doubtful accounts | $ 24.7 | $ 32.1 |
Accumulated depreciation | 1,275.8 | 1,279.2 |
Intangible assets, accumulated amortization | $ 727.1 | $ 879.9 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,859.6 | $ 3,790.1 | $ 7,489.2 | $ 7,377.6 |
Salary and service costs | 2,772.9 | 2,731.7 | 5,485.7 | 5,420.2 |
Occupancy and other costs | 319.6 | 305.7 | 639.9 | 607.6 |
Cost of services | 3,092.5 | 3,037.4 | 6,125.6 | 6,027.8 |
Selling, general and administrative expenses | 117.4 | 110.1 | 222.9 | 218.8 |
Depreciation and amortization | 67.4 | 71.1 | 136.8 | 143.8 |
Operating Expenses | 3,277.3 | 3,218.6 | 6,485.3 | 6,390.4 |
Operating Profit | 582.3 | 571.5 | 1,003.9 | 987.2 |
Interest Expense | 66.4 | 62.8 | 128.6 | 121.9 |
Interest Income | 13.9 | 11.5 | 29.3 | 25.3 |
Income Before Income Taxes and Income From Equity Method Investments | 529.8 | 520.2 | 904.6 | 890.6 |
Income Tax Expense | 136.7 | 166.7 | 227.7 | 274.7 |
Income From Equity Method Investments | 1.7 | 1.6 | 2.6 | 1.6 |
Net Income | 394.8 | 355.1 | 679.5 | 617.5 |
Net Income Attributed To Noncontrolling Interests | 30.6 | 26.5 | 51.2 | 47.1 |
Net Income - Omnicom Group Inc. | $ 364.2 | $ 328.6 | $ 628.3 | $ 570.4 |
Net Income Per Share - Omnicom Group Inc.: | ||||
Basic | $ 1.61 | $ 1.41 | $ 2.75 | $ 2.44 |
Diluted | 1.60 | 1.40 | 2.73 | 2.42 |
Dividends Declared Per Common Share | $ 0.60 | $ 0.55 | $ 1.20 | $ 1.10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 394.8 | $ 355.1 | $ 679.5 | $ 617.5 |
Cash flow hedge: | ||||
Amortization of loss included in interest expense | 1.4 | 1.4 | 2.8 | 2.8 |
Income tax effect | (0.4) | (0.6) | (0.8) | (1.2) |
Other comprehensive income | 1 | 0.8 | 2 | 1.6 |
Defined benefit pension plans and postemployment arrangements: | ||||
Amortization of prior service cost | 1.9 | 2.2 | 3.9 | 4.2 |
Amortization of actuarial losses | 2.2 | 1.7 | 4.2 | 3.6 |
Income tax effect | (1.3) | (1.9) | (2.4) | (3.6) |
Other comprehensive income | 2.8 | 2 | 5.7 | 4.2 |
Available-for-sale securities: | ||||
Unrealized gain for the period | 0 | 0.3 | 0 | 0.5 |
Income tax effect | 0 | (0.1) | 0 | (0.2) |
Reclassification | 0 | 0 | 0.3 | 0 |
Other comprehensive income | 0 | 0.2 | 0.3 | 0.3 |
Foreign currency translation adjustment | (325.8) | 140.1 | (237.1) | 254.8 |
Other Comprehensive Income | (322) | 143.1 | (229.1) | 260.9 |
Comprehensive Income | 72.8 | 498.2 | 450.4 | 878.4 |
Comprehensive Income Attributed To Noncontrolling Interests | 0.9 | 28.5 | 26.5 | 63.9 |
Comprehensive Income - Omnicom Group Inc. | $ 71.9 | $ 469.7 | $ 423.9 | $ 814.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 679.5 | $ 617.5 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 82.3 | 84.9 |
Amortization of intangible assets | 54.5 | 58.9 |
Share-based compensation | 35.1 | 40 |
Other, net | 7.5 | (3.8) |
Use of operating capital | (1,431.8) | (1,128.5) |
Net Cash Used In Operating Activities | (572.9) | (331) |
Cash Flows from Investing Activities: | ||
Capital expenditures | (89.8) | (67.9) |
Acquisition of businesses and interests in affiliates, net of cash acquired | (207.3) | (19.5) |
Sale of investments | 4 | 25.4 |
Net Cash Used In Investing Activities | (293.1) | (62) |
Cash Flows from Financing Activities: | ||
Change in short-term debt | 9.7 | (10.2) |
Dividends paid to common shareholders | (278.1) | (260.7) |
Repurchases of common stock | (469.2) | (474.7) |
Proceeds from stock plans | 6.5 | 6.5 |
Acquisition of additional noncontrolling interests | (40.3) | (8) |
Dividends paid to noncontrolling interest shareholders | (57.3) | (67.3) |
Payment of contingent purchase price obligations | (51.3) | (71.2) |
Other, net | (22.4) | (17.1) |
Net Cash Used In Financing Activities | (902.4) | (902.7) |
Effect of foreign exchange rate changes on cash and cash equivalents | (114.3) | 127.5 |
Net Decrease in Cash and Cash Equivalents | (1,882.7) | (1,168.2) |
Cash and Cash Equivalents at the Beginning of Period | 3,796 | 3,002.2 |
Cash and Cash Equivalents at the End of Period | $ 1,913.3 | $ 1,834 |
Presentation of Financial State
Presentation of Financial Statements | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 , or 2017 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. Accounting Changes Except for the changes discussed below, Omnicom has consistently applied the accounting policies to all periods presented in these unaudited consolidated financial statements. Effective January 1, 2018, we adopted FASB ASC Topic 606, Revenue from Contracts with Customers , or ASC 606. In accordance with ASC 606, we changed certain characteristics of our revenue recognition accounting policy as described below. ASC 606 was applied using the modified retrospective method, where the cumulative effect of the initial application was recognized as an adjustment to opening retained earnings at January 1, 2018. Therefore, comparative prior periods have not been adjusted and continue to be reported under FASB ASC Topic 605, Revenue Recognition , or ASC 605. The impact of the adoption of ASC 606 on revenue, operating expenses and operating profit for the three and six months ended June 30, 2018 was (in millions): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Adjustments Amounts without the Adoption of ASC 606 As Reported Adjustments Amounts without the Adoption of ASC 606 Revenue $ 3,859.6 $ 49.0 $ 3,908.6 $ 7,489.2 $ 91.4 $ 7,580.6 Operating Expenses 3,277.3 41.5 3,318.8 6,485.3 77.4 6,562.7 Operating Profit 582.3 7.5 589.8 1,003.9 14.0 1,017.9 The impact of the adoption of ASC 606 on net income - Omnicom Group Inc., diluted net income per share - Omnicom Group Inc. and the unaudited consolidated financial statements was not material. Upon adoption of ASC 606, we changed our accounting policy for certain third-party out-of-pocket costs, which are incurred in connection with our services and are billed to clients. We also changed our policy for performance incentives (variable consideration) included in certain client contracts. The inclusion of third-party out-of-pocket costs in revenue depends on whether we act as a principal or agent in the client arrangement. Under ASC 606, the principal versus agent assessment is based on whether we control the specified goods or services before they are transferred to the customer. As a result of the adoption of ASC 606, certain third-party costs are no longer included in revenue and cost of services. This change was the principal adjustment to our reported revenue and operating expenses included in the above table. However, the change had no impact on operating profit. In addition, performance incentives included in certain client contracts can increase revenue if we meet certain quantitative or qualitative objectives in delivering our services. Under ASC 606, performance incentives are now treated as variable consideration. Prior to the adoption of ASC 606, performance incentives were recognized in revenue under ASC 605 when specific quantitative goals were achieved or when our performance against qualitative goals was acknowledged by the client. Under ASC 606, variable consideration is estimated and included in total consideration at contract inception based on either the expected value method or the most likely outcome method. These estimates are based on historical award experience, anticipated performance and our best judgment at the time. As a result of this change, we recorded a cumulative effect adjustment to increase opening retained earnings at January 1, 2018 by $19.5 million , to reflect the transition requirements of ASC 606. The effect of this change on our financial position and cash flows was not material. Effective January 1, 2018, we adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , or ASU 2016-01, which revised the classification and measurement of investments in equity securities. ASU 2016-01 requires that equity investments, except those accounted for under the equity method of accounting, be measured at fair value and changes in fair value are recognized in net income, and provides a new measurement alternative for equity investments that do not have a readily determinable fair value (cost method investments). These investments are measured at cost, less any impairment, adjusted for observable price changes and, upon adoption, we elected to record our equity investments that do not have a readily determinable fair value using the alternative measurement method. We adopted ASU 2016-01 using the modified retrospective method and, accordingly, we recorded a cumulative effect adjustment to increase opening retained earnings at January 1, 2018 by $4.1 million . Effective January 1, 2018, we adopted ASU 2017-07, Compensation - Retirement Benefits , or ASU 2017-07, which requires that only the service cost component of periodic benefit cost is recorded in salary and service cost. All other components of net periodic benefit cost are excluded from operating profit. The adoption of ASU 2017-07 increased operating profit for the six months ended June 30, 2018 by $12.3 million but had no effect on income before income taxes and income from equity method investments, net income - Omnicom Group Inc. or net income per share - Omnicom Group Inc. ASU 2017-07 was applied retrospectively, and accordingly, for the six months ended June 30, 2017 , we reclassified $11.7 million from salary and service costs to interest expense. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue [Abstract] | |
Revenue | Revenue We provide advertising, marketing and corporate communications services on a global basis to a broad range of clients. Our principal source of revenue is derived from fees for services on a rate per hour basis or per project basis. We also earn revenue from commissions and placement of advertising primarily related to our strategic media planning and buying businesses. Revenue is recorded net of sales, use and value added taxes. Our customer contracts are usually short term, typically for one year or less, and may be canceled on 90 days’ notice. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We measure revenue based on the consideration specified in the client arrangement, and revenue is recognized when the performance obligations are satisfied. A performance obligation is a promise in a contract to transfer a distinct service to the customer. If the services are not distinct or a series of services are substantially the same, they should be combined as a single performance obligation. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as, the customer receives the benefit of the performance obligation. Clients typically receive the benefit of our services as they are performed. Substantially all our client contracts provide that we are compensated for services performed to date. For short-term contracts, generally less than 90 days, we do not consider the underlying services as separate or distinct performance obligations because our services are highly interrelated, occur in close proximity, and the integration of the various components of a marketing message is essential to our services. As described below, in certain long-term client contracts, generally up to one year, the performance obligation is a stand-ready obligation where we may combine similar performance obligations into a single performance obligation. When not structured as a stand-ready obligation, we consider our services distinct performance obligations and allocate the fee to each separate service based on their stand-alone selling price. Substantially all our revenue is recognized over time, as the services are performed. For fixed fee contracts with either a single performance obligation, or multiple performance obligations, revenue is recognized over time using input measures that correspond to the effort expended, including direct labor and materials and third-party costs to satisfy the performance obligation, which often coincide with the right to invoice the customer. For certain retainer contracts, we have a stand-ready obligation to perform services on an ongoing basis over the life of the contract, typically for periods up to one year. The scope of these arrangements is broad and generally there are no significant gaps in performing the services. In these instances, we recognize revenue using a time-based measure resulting in a straight-line revenue recognition. From time to time, there may be changes in the client service requirements during the term of the contract and the changes could be significant. These changes are typically negotiated as new contracts covering the additional requirements and the associated costs, as well as additional fees for the incremental work to be performed. For certain other contracts where our performance obligations are satisfied in phases, we recognize revenue over time using certain output measures based on the measurement of the value transferred to the customer, including milestones achieved. Revenue for commissions on purchased media is recognized at a point in time, typically when the media is run. In substantially all our businesses, we incur third-party-costs on behalf of clients, including direct costs and incidental, or out-of-pocket, costs. Direct costs incurred in connection with the creation and delivery of advertising or marketing communication services include, among others: purchased media, studio production services, specialized talent, including artists and other freelance labor, event marketing supplies, materials and services, promotional items, market research and third-party data, and other related expenditures. Out-of-pocket costs include, among others: transportation, hotel, meals, and telecommunication charges. These costs are included in revenue since we control the goods or services prior to delivery to the client. However, the inclusion of direct costs in revenue depends on whether we act as a principal or as an agent in the client arrangement. In the majority of our businesses, we act as an agent and arrange, at the client's direction, for third-parties to perform certain services. In these cases, we do not control the goods or services prior to the transfer to the client. As a result, revenue is recorded net of these costs, equal to the amount retained for our fee or commission. In certain arrangements, we typically act as principal when contracting for third-party services on behalf of our clients in our events, field marketing and certain specialty marketing businesses within our CRM disciplines, as well as certain media buying efforts. We act as principal when we are responsible for directing and integrating third-party vendors to fulfill our performance obligation at the agreed upon fee, and thus take pricing risk under the terms of the client contract. In these circumstances we control the specified goods or services, including out-of-pocket costs, prior to the transfer to the client. Therefore, we record revenue at the gross amount billed including these costs. Some of our client arrangements include variable consideration provisions, which include performance incentives, tiered commission structures and vendor rebates in certain markets outside of the United States. Variable consideration is estimated and included in total consideration at contract inception based on either the expected value method or the most likely outcome method. These estimates are based on historical award experience, anticipated performance and other factors known at the time. Performance incentives are typically recognized in revenue over time. In some cases, primarily related to variable fee structures in our media businesses, the amount of variable consideration is considered to be constrained and is not recognized in revenue until the point in time it is determined that a significant reversal of revenue will not occur. Variable consideration for our media businesses, including commission revenue, is recognized when it is probable that the media will be run, including when it is not subject to cancellation by the client. In addition, when we receive rebates or credits from vendors for transactions entered into on behalf of clients, they are remitted to the clients in accordance with contractual requirements or retained by us based on the terms of the client contract or local law. Amounts passed on to clients are recorded as a liability and amounts retained by us are recorded as revenue when earned, which is typically when the media is run. Nature of our services We provide an extensive range of advertising, marketing and corporate communications services through various client-centric networks that are organized to meet specific client objectives. Our branded networks and agencies operate in all major markets and provide services in the following fundamental disciplines: advertising, customer relationship management, or CRM, public relations, and healthcare. Advertising includes creative content development, as well as strategic media planning and buying and data analytics. CRM is grouped into two separate categories: CRM Consumer Experience, which includes Omnicom’s Precision Marketing Group and digital/direct agencies, as well as our branding, shopper marketing and experiential marketing agencies; and CRM Execution & Support, which includes field marketing, sales support, merchandising and point of sale, as well as other specialized marketing and custom communications services. Public relations services include corporate communications, crisis management, public affairs, media and media relations services and content marketing. Healthcare includes advertising and media services to global healthcare clients. At the core of all our services is the ability to create or develop a client’s marketing or corporate communications message into content that can be delivered to a target audience across different communications mediums. Our client-centric business model requires that multiple agencies within Omnicom collaborate in formal and informal virtual client networks utilizing our key client matrix organization structure. This collaboration allows us to cut across our internal organizational structures to execute our clients’ marketing requirements in a consistent and comprehensive manner. In addition to collaborating through our client service models, our agencies and networks collaborate across technology platforms. Annalect, our data and analytics platform, serves as the strategic foundation for all of our agencies and networks to share when developing client service strategies across our virtual networks. Omni, our people-based precision marketing and insights platform, identifies and defines personalized consumer experiences at scale across creative, media and CRM, as well as other practice areas. Revenue by discipline for the three and six months ended June 30, 2018 and 2017 was (in millions): Three Months Ended June 30, Six Months Ended June 30, 2018 2018 Excluding Impact of Adoption of ASC 606 2017 2018 2018 2017 Advertising $ 2,067.6 $ 2,073.8 $ 2,027.2 $ 3,968.9 $ 3,982.7 $ 3,956.2 CRM Consumer Experience 660.0 704.1 654.7 1,294.9 1,372.3 1,268.3 CRM Execution & Support 498.7 497.2 517.3 1,007.2 1,007.1 1,006.6 Public Relations 362.7 362.9 350.3 709.1 709.3 685.4 Healthcare 270.6 270.6 240.6 509.1 509.2 461.1 $ 3,859.6 $ 3,908.6 $ 3,790.1 $ 7,489.2 $ 7,580.6 $ 7,377.6 Economic factors affecting our revenue Global economic conditions have a direct impact on our revenue. Adverse economic conditions pose a risk that our clients may reduce, postpone or cancel spending for our services, which would impact our revenue. Revenue in our principal geographic markets for the three and six months ended June 30, 2018 and 2017 was (in millions): Three Months Ended June 30, Six Months Ended June 30, 2018 2018 Excluding Impact of Adoption of ASC 606 2017 2018 2018 2017 Americas: North America $ 2,097.4 $ 2,144.6 $ 2,175.6 $ 4,083.1 $ 4,167.3 $ 4,314.9 Latin America 115.1 115.2 121.2 223.5 223.3 227.8 EMEA: Europe 1,142.6 1,145.2 1,012.5 2,212.7 2,220.8 1,900.2 Middle East and Africa 70.2 70.2 75.5 143.6 143.6 154.4 Asia Pacific 434.3 433.4 405.3 826.3 825.6 780.3 $ 3,859.6 $ 3,908.6 $ 3,790.1 $ 7,489.2 $ 7,580.6 $ 7,377.6 The Americas comprises North America, which includes the United States, Canada and Puerto Rico, and Latin America, which includes South America and Mexico. EMEA comprises Europe, the Middle East and Africa. Asia Pacific comprises Australia, China, India, Japan, Korea, New Zealand, Singapore and other Asian countries. The reduction in revenue in 2018 for North America primarily reflects the sale of our specialty print media business in the second quarter of 2017 . Contract assets and liabilities Contract assets (work in process) and contract liabilities (customer advances) at June 30, 2018 , December 31, 2017 and June 30, 2017 were (in millions): June 30, 2018 December 31, 2017 June 30, 2017 Contract assets (Work in process): Unbilled fees and costs $ 709.2 $ 546.3 $ 752.7 Media, production and other costs 644.3 564.3 648.9 $ 1,353.5 $ 1,110.6 $ 1,401.6 Contract liabilities (Customer advances) $ 1,147.1 $ 1,266.7 $ 1,141.1 Contract assets consist of accrued costs incurred on behalf of customers, including media and production costs, and fees and other third-party costs that have not yet been billed. Media and production costs are billed during the production process in accordance with the terms of the client contract. Unbilled fees and costs are in the process of being billed to clients, typically within the next 30 days or in accordance with the terms of the client contract. The contract liability represents advance billings to customers in accordance with the terms of the client contracts, primarily for the reimbursement of third-party costs that are generally incurred in the near term. There were no impairment losses to the contract assets recorded in 2018 . |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | New Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases , or ASU 2016-02, which will supersede the current guidance for lease accounting and will require 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 adoption is permitted. ASU 2016-02 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 adopt 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 and no effect on our results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , or ASU 2016-13, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for annual and interim periods beginning after December 15, 2018. We expect to adopt ASU 2016-13 on January 1, 2020. However, we are not yet in a position to assess the impact of the new standard on our results of operations or financial position. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax effects from Accumulated Other Comprehensive Income , or ASU 2018-02, which requires the reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects arising from the change in the reduction of the U.S. federal statutory income tax rate to 21% from 35%. The tax effects of items included in accumulated comprehensive income at December 31, 2017 do not reflect the appropriate tax rate. ASU 2018-02 is effective for interim and annual periods beginning after December 15, 2018. We will adopt ASU 2018-02 on January 1, 2019. The adoption of ASU 2018-02 will result in a reclassification between accumulated other comprehensive income and retained earnings, and will have no impact on our results of operations or financial position. |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2018 | |
Net Income per Share [Abstract] | |
Net Income per Share | Net Income per Share The computations of basic and diluted net income per share for the three and six months ended June 30, 2018 and 2017 were (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net Income Available for Common Shares: Net income - Omnicom Group Inc. $ 364.2 $ 328.6 $ 628.3 $ 570.4 Net income allocated to participating securities (0.1 ) (0.5 ) (0.1 ) (1.0 ) $ 364.1 $ 328.1 $ 628.2 $ 569.4 Weighted Average Shares: Basic 226.8 232.1 228.5 233.3 Dilutive stock options and restricted shares 1.3 1.9 1.3 1.9 Diluted 228.1 234.0 229.8 235.2 Anti-dilutive stock options and restricted shares 1.0 1.0 1.0 1.0 Net Income per Share - Omnicom Group Inc.: Basic $ 1.61 $ 1.41 $ 2.75 $ 2.44 Diluted $ 1.60 $ 1.40 $ 2.73 $ 2.42 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets at June 30, 2018 and December 31, 2017 were (in millions): 2018 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Goodwill $ 9,961.8 $ (519.2 ) $ 9,442.6 $ 9,871.8 $ (534.3 ) $ 9,337.5 Intangible assets: Purchased and internally developed software $ 369.2 $ (312.0 ) $ 57.2 $ 368.2 $ (303.0 ) $ 65.2 Customer related and other 735.6 (415.1 ) 320.5 880.1 (576.9 ) 303.2 $ 1,104.8 $ (727.1 ) $ 377.7 $ 1,248.3 $ (879.9 ) $ 368.4 Changes in goodwill for the six months ended June 30, 2018 and 2017 were (in millions): 2018 2017 January 1 $ 9,337.5 $ 8,976.1 Acquisitions 164.9 15.8 Noncontrolling interests in acquired businesses 55.7 14.5 Contingent purchase price of acquired businesses 57.5 8.5 Foreign currency translation and other (173.0 ) 167.1 June 30 $ 9,442.6 $ 9,182.0 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt [Abstract] | |
Debt | Debt Credit Facilities At June 30, 2018 , our short-term liquidity sources include a $2.5 billion revolving credit facility, or Credit Facility, expiring on July 31, 2021 , uncommitted credit lines aggregating $1.2 billion and the ability to issue up to $2 billion of commercial paper. There were no outstanding commercial paper issuances or borrowings under the Credit Facility or the uncommitted credit lines at June 30, 2018 and December 31, 2017 . Available and unused credit lines at June 30, 2018 and December 31, 2017 were (in millions): 2018 2017 Credit Facility $ 2,500.0 $ 2,500.0 Uncommitted credit lines 1,220.8 1,181.0 Available and unused credit lines $ 3,720.8 $ 3,681.0 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, 2018 we were in compliance with these covenants as our Leverage Ratio was 2.1 times and our Interest Coverage Ratio was 10.3 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, 2018 and December 31, 2017 was $20.8 million and $11.8 million , respectively, consisting of 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, 2018 and December 31, 2017 was (in millions): 2018 2017 6.25% Senior Notes due 2019 $ 500.0 $ 500.0 4.45% Senior Notes due 2020 1,000.0 1,000.0 3.625% Senior Notes due 2022 1,250.0 1,250.0 3.65% Senior Notes due 2024 750.0 750.0 3.60% Senior Notes due 2026 1,400.0 1,400.0 4,900.0 4,900.0 Unamortized premium (discount), net 5.6 6.2 Unamortized debt issuance costs (18.3 ) (20.3 ) Unamortized deferred gain from settlement of interest rate swaps 57.2 66.4 Fair value adjustment attributed to outstanding interest rate swaps (77.7 ) (39.4 ) 4,866.8 4,912.9 Current portion — — Long-term debt $ 4,866.8 $ 4,912.9 Omnicom and its wholly owned finance subsidiary, Omnicom Capital Inc., or OCI, are co-obligors under all the senior notes. The senior notes are a joint and several liability of us and OCI, and we unconditionally guarantee OCI’s obligations with respect to the senior notes. OCI provides funding for our operations by incurring debt and lending the proceeds to our operating subsidiaries. OCI’s assets primarily consist of cash and cash equivalents and intercompany loans made to our operating subsidiaries, and the related interest receivable. There are no restrictions on the ability of OCI or us to obtain funds from our subsidiaries through dividends, loans or advances. Our senior notes are senior unsecured obligations that rank equal in right of payment with all existing and future unsecured senior indebtedness. At June 30, 2018 , we recorded a long-term liability of $36.3 million in connection with the $750 million fixed-to-floating interest rate swap on our 3.65% Senior Notes due 2024, or 2024 Notes, and a long-term liability of $41.4 million in connection with the $500 million fixed-to-floating interest rate swap on our 3.60% Senior Notes due 2026, or 2026 Notes. The liabilities represent the fair value of the swaps on the 2024 Notes and 2026 Notes that was substantially offset by the change in the fair value of the notes. The fixed-to-floating interest rate swaps have the economic effect of converting our debt portfolio to approximately 75% fixed rate obligations and 25% floating rate obligations. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
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 occupancy and other costs which include rent and occupancy costs, technology costs and other overhead expenses. Therefore, given these similarities, we aggregate our operating segments, which are our five agency networks, into one reporting segment. The agency networks' regional reporting units comprise three principal regions; the Americas, EMEA and Asia Pacific. The regional reporting units monitor the performance and are responsible for the agencies in their region. Agencies within the regional reporting units serve similar clients in similar industries and in many cases the same clients and have similar economic characteristics. Revenue and long-lived assets and goodwill by geographic region at and for the three and six months ended June 30, 2018 and 2017 were (in millions): Americas EMEA Asia Pacific 2018 Revenue - Three months ended $ 2,212.5 $ 1,212.8 $ 434.3 Revenue - Six months ended 4,306.6 2,356.3 826.3 Long-lived assets and goodwill 6,825.4 2,757.9 556.5 2017 Revenue - Three months ended $ 2,296.8 $ 1,088.0 $ 405.3 Revenue - Six months ended 4,542.7 2,054.6 780.3 Long-lived assets and goodwill 6,654.2 2,678.0 537.5 The Americas comprises North America, which includes the United States, Canada and Puerto Rico, and Latin America, which includes South America and Mexico. EMEA comprises Europe, the Middle East and Africa. Asia Pacific comprises Australia, China, India, Japan, Korea, New Zealand, Singapore and other Asian countries. Revenue in the United States for the three and six months ended June 30, 2018 and 2017 was $1,990.8 million and $3,871.9 million and $2,060.9 million and $4,072.7 million , respectively. The reduction in revenue in 2018 for the Americas primarily reflects the sale of our specialty print media business in the second quarter of 2017 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the six months ended June 30, 2018 , decreased period-over-period to 25.2% from 30.8% . The decrease was primarily attributable to the reduction of the U.S. federal statutory income tax rate to 21% from 35% resulting from the Tax Cuts and Jobs Act, or Tax Act, which was enacted in December 2017. In addition, income tax expense in the six months of 2018 was reduced by approximately $25 million , primarily as a result of the successful resolution of foreign tax claims and a reduction of the expected incremental U.S. income tax applied against our overall foreign earnings. At June 30, 2018 , our unrecognized tax benefits were $166.3 million . Of this amount, approximately $149.0 million would affect our effective tax rate upon resolution of the uncertain tax positions. |
Pension and Other Postemploymen
Pension and Other Postemployment Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Pension and Other Postemployment Benefits [Abstract] | |
Pension and Other Postemployment Benefits | Pension and Other Postemployment Benefits Effective January 1, 2018, we retrospectively adopted ASU 2017-07 (see Note 1). As a result, only the service cost component of periodic benefit cost is recorded in salary and service cost and all other components of net periodic benefit cost are included in interest expense. Defined Benefit Pension Plans The components of net periodic benefit expense for the six months ended June 30, 2018 and 2017 were (in millions): 2018 2017 Service cost $ 4.0 $ 5.3 Interest cost 3.6 3.5 Expected return on plan assets (1.4 ) (1.4 ) Amortization of prior service cost 2.2 2.4 Amortization of actuarial losses 3.3 3.1 $ 11.7 $ 12.9 We contributed $1.1 million and $0.7 million to our defined benefit pension plans in the six months ended June 30, 2018 and 2017 , respectively. Postemployment Arrangements The components of net periodic benefit expense for the six months ended June 30, 2018 and 2017 were (in millions): 2018 2017 Service cost $ 2.4 $ 2.2 Interest cost 1.8 1.8 Amortization of prior service cost 1.7 1.8 Amortization of actuarial losses 0.9 0.5 $ 6.8 $ 6.3 |
Supplemental Cash Flow Data
Supplemental Cash Flow Data | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Data [Abstract] | |
Supplemental Cash Flow Data | Supplemental Cash Flow Data The use of operating capital for the six months ended June 30, 2018 and 2017 was (in millions): 2018 2017 (Increase) decrease in accounts receivable $ 1,173.6 $ 460.3 (Increase) decrease in work in process and other current assets (354.4 ) (277.5 ) Increase (decrease) in accounts payable (1,803.2 ) (785.9 ) Increase (decrease) in customer advances, taxes payable and other current liabilities (459.3 ) (490.5 ) Change in other assets and liabilities, net 11.5 (34.9 ) $ (1,431.8 ) $ (1,128.5 ) Income taxes paid $ 276.4 $ 339.0 Interest paid $ 115.4 $ 111.2 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
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. In December 2016, two of our subsidiaries received subpoenas from the U.S. Department of Justice Antitrust Division concerning its ongoing investigation of video production and post-production practices in the advertising industry. The Company is fully cooperating with the investigation. While the ultimate effect of the investigation is inherently uncertain, we do not at this time believe that the investigation will have a material adverse effect on our results of operations or financial position. However, the ultimate resolution of these matters could be different from our current assessment and the differences could be material. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity | Equity Changes in accumulated other comprehensive income (loss), net of income taxes, for the six months ended June 30, 2018 and 2017 were (in millions): 2018 Cash Flow Hedge Available-for-Sale Securities Defined Benefit Pension Plans and Postemployment Arrangements Foreign Currency Translation Total January 1 $ (26.3 ) $ (0.3 ) $ (88.4 ) $ (848.0 ) $ (963.0 ) Other comprehensive income (loss) before reclassifications — — — (212.3 ) (212.3 ) Reclassification from accumulated other comprehensive income (loss) 2.0 0.3 5.7 — 8.0 June 30 $ (24.3 ) $ — $ (82.7 ) $ (1,060.3 ) $ (1,167.3 ) 2017 January 1 $ (29.5 ) $ (0.8 ) $ (90.6 ) $ (1,235.1 ) $ (1,356.0 ) Other comprehensive income (loss) before reclassifications — 0.3 — 237.9 238.2 Reclassification from accumulated other comprehensive income (loss) 1.6 — 4.2 — 5.8 June 30 $ (27.9 ) $ (0.5 ) $ (86.4 ) $ (997.2 ) $ (1,112.0 ) |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value [Abstract] | |
Fair Value | Fair Value Financial assets and liabilities measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017 were (in millions): 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 1,913.3 $ 1,913.3 Short-term investments 5.4 5.4 Investment in equity securities 1.6 1.6 Foreign currency derivative instruments $ 0.2 0.2 Liabilities: Interest rate and foreign currency derivative instruments $ 79.3 $ 79.3 Contingent purchase price obligations $ 235.3 235.3 2017 Assets: Cash and cash equivalents $ 3,796.0 $ 3,796.0 Short-term investments 0.4 0.4 Investment in equity securities 1.4 1.4 Foreign currency derivative instruments $ 1.0 1.0 Liabilities: Interest rate and foreign currency derivative instruments $ 39.5 $ 39.5 Contingent purchase price obligations $ 215.6 215.6 Changes in contingent purchase price obligations for the six months ended June 30, 2018 and 2017 were (in millions): 2018 2017 January 1 $ 215.6 $ 386.1 Acquisitions 79.7 22.2 Revaluation and interest 4.9 (0.4 ) Payments (51.3 ) (146.4 ) Foreign currency translation (13.6 ) 6.7 June 30 $ 235.3 $ 268.2 The carrying amount and fair value of our financial assets and liabilities at June 30, 2018 and December 31, 2017 were (in millions): 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 1,913.3 $ 1,913.3 $ 3,796.0 $ 3,796.0 Short-term investments 5.4 5.4 0.4 0.4 Investment in equity securities 1.6 1.6 1.4 1.4 Foreign currency derivative instruments 0.2 0.2 1.0 1.0 Investment in equity securities without readily determinable fair value 11.9 11.9 14.4 14.4 Liabilities: Short-term debt $ 20.8 $ 20.8 $ 11.8 $ 11.8 Interest rate and foreign currency derivative instruments 79.3 79.3 39.5 39.5 Contingent purchase price obligations 235.3 235.3 215.6 215.6 Long-term debt, including current portion 4,866.8 4,865.1 4,912.9 5,056.9 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 | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated events subsequent to the balance sheet date and determined there have not been any events that have occurred that would require adjustment to or disclosure in the consolidated financial statements. |
Presentation of Financial Sta21
Presentation of Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Presentation of Financial Statements [Abstract] | |
Impact of Adoption of ASC 606 | The impact of the adoption of ASC 606 on revenue, operating expenses and operating profit for the three and six months ended June 30, 2018 was (in millions): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Adjustments Amounts without the Adoption of ASC 606 As Reported Adjustments Amounts without the Adoption of ASC 606 Revenue $ 3,859.6 $ 49.0 $ 3,908.6 $ 7,489.2 $ 91.4 $ 7,580.6 Operating Expenses 3,277.3 41.5 3,318.8 6,485.3 77.4 6,562.7 Operating Profit 582.3 7.5 589.8 1,003.9 14.0 1,017.9 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Revenue in our principal geographic markets for the three and six months ended June 30, 2018 and 2017 was (in millions): Three Months Ended June 30, Six Months Ended June 30, 2018 2018 Excluding Impact of Adoption of ASC 606 2017 2018 2018 2017 Americas: North America $ 2,097.4 $ 2,144.6 $ 2,175.6 $ 4,083.1 $ 4,167.3 $ 4,314.9 Latin America 115.1 115.2 121.2 223.5 223.3 227.8 EMEA: Europe 1,142.6 1,145.2 1,012.5 2,212.7 2,220.8 1,900.2 Middle East and Africa 70.2 70.2 75.5 143.6 143.6 154.4 Asia Pacific 434.3 433.4 405.3 826.3 825.6 780.3 $ 3,859.6 $ 3,908.6 $ 3,790.1 $ 7,489.2 $ 7,580.6 $ 7,377.6 Revenue by discipline for the three and six months ended June 30, 2018 and 2017 was (in millions): Three Months Ended June 30, Six Months Ended June 30, 2018 2018 Excluding Impact of Adoption of ASC 606 2017 2018 2018 2017 Advertising $ 2,067.6 $ 2,073.8 $ 2,027.2 $ 3,968.9 $ 3,982.7 $ 3,956.2 CRM Consumer Experience 660.0 704.1 654.7 1,294.9 1,372.3 1,268.3 CRM Execution & Support 498.7 497.2 517.3 1,007.2 1,007.1 1,006.6 Public Relations 362.7 362.9 350.3 709.1 709.3 685.4 Healthcare 270.6 270.6 240.6 509.1 509.2 461.1 $ 3,859.6 $ 3,908.6 $ 3,790.1 $ 7,489.2 $ 7,580.6 $ 7,377.6 |
Contract Assets and Liabilities | Contract assets (work in process) and contract liabilities (customer advances) at June 30, 2018 , December 31, 2017 and June 30, 2017 were (in millions): June 30, 2018 December 31, 2017 June 30, 2017 Contract assets (Work in process): Unbilled fees and costs $ 709.2 $ 546.3 $ 752.7 Media, production and other costs 644.3 564.3 648.9 $ 1,353.5 $ 1,110.6 $ 1,401.6 Contract liabilities (Customer advances) $ 1,147.1 $ 1,266.7 $ 1,141.1 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Net Income per Share [Abstract] | |
Computations of Basic and Diluted Net Income per Share | The computations of basic and diluted net income per share for the three and six months ended June 30, 2018 and 2017 were (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net Income Available for Common Shares: Net income - Omnicom Group Inc. $ 364.2 $ 328.6 $ 628.3 $ 570.4 Net income allocated to participating securities (0.1 ) (0.5 ) (0.1 ) (1.0 ) $ 364.1 $ 328.1 $ 628.2 $ 569.4 Weighted Average Shares: Basic 226.8 232.1 228.5 233.3 Dilutive stock options and restricted shares 1.3 1.9 1.3 1.9 Diluted 228.1 234.0 229.8 235.2 Anti-dilutive stock options and restricted shares 1.0 1.0 1.0 1.0 Net Income per Share - Omnicom Group Inc.: Basic $ 1.61 $ 1.41 $ 2.75 $ 2.44 Diluted $ 1.60 $ 1.40 $ 2.73 $ 2.42 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and intangible assets at June 30, 2018 and December 31, 2017 were (in millions): 2018 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Goodwill $ 9,961.8 $ (519.2 ) $ 9,442.6 $ 9,871.8 $ (534.3 ) $ 9,337.5 Intangible assets: Purchased and internally developed software $ 369.2 $ (312.0 ) $ 57.2 $ 368.2 $ (303.0 ) $ 65.2 Customer related and other 735.6 (415.1 ) 320.5 880.1 (576.9 ) 303.2 $ 1,104.8 $ (727.1 ) $ 377.7 $ 1,248.3 $ (879.9 ) $ 368.4 |
Changes in Goodwill | Changes in goodwill for the six months ended June 30, 2018 and 2017 were (in millions): 2018 2017 January 1 $ 9,337.5 $ 8,976.1 Acquisitions 164.9 15.8 Noncontrolling interests in acquired businesses 55.7 14.5 Contingent purchase price of acquired businesses 57.5 8.5 Foreign currency translation and other (173.0 ) 167.1 June 30 $ 9,442.6 $ 9,182.0 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt [Abstract] | |
Available and Unused Credit Lines | Available and unused credit lines at June 30, 2018 and December 31, 2017 were (in millions): 2018 2017 Credit Facility $ 2,500.0 $ 2,500.0 Uncommitted credit lines 1,220.8 1,181.0 Available and unused credit lines $ 3,720.8 $ 3,681.0 |
Long-Term Debt | Long-term debt at June 30, 2018 and December 31, 2017 was (in millions): 2018 2017 6.25% Senior Notes due 2019 $ 500.0 $ 500.0 4.45% Senior Notes due 2020 1,000.0 1,000.0 3.625% Senior Notes due 2022 1,250.0 1,250.0 3.65% Senior Notes due 2024 750.0 750.0 3.60% Senior Notes due 2026 1,400.0 1,400.0 4,900.0 4,900.0 Unamortized premium (discount), net 5.6 6.2 Unamortized debt issuance costs (18.3 ) (20.3 ) Unamortized deferred gain from settlement of interest rate swaps 57.2 66.4 Fair value adjustment attributed to outstanding interest rate swaps (77.7 ) (39.4 ) 4,866.8 4,912.9 Current portion — — Long-term debt $ 4,866.8 $ 4,912.9 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Revenue and Long-Lived Assets and Goodwill by Geographic Region | Revenue and long-lived assets and goodwill by geographic region at and for the three and six months ended June 30, 2018 and 2017 were (in millions): Americas EMEA Asia Pacific 2018 Revenue - Three months ended $ 2,212.5 $ 1,212.8 $ 434.3 Revenue - Six months ended 4,306.6 2,356.3 826.3 Long-lived assets and goodwill 6,825.4 2,757.9 556.5 2017 Revenue - Three months ended $ 2,296.8 $ 1,088.0 $ 405.3 Revenue - Six months ended 4,542.7 2,054.6 780.3 Long-lived assets and goodwill 6,654.2 2,678.0 537.5 |
Pension and Other Postemploym27
Pension and Other Postemployment Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Pension Plans [Member] | |
Components of Net Periodic Benefit Expense | Defined Benefit Pension Plans The components of net periodic benefit expense for the six months ended June 30, 2018 and 2017 were (in millions): 2018 2017 Service cost $ 4.0 $ 5.3 Interest cost 3.6 3.5 Expected return on plan assets (1.4 ) (1.4 ) Amortization of prior service cost 2.2 2.4 Amortization of actuarial losses 3.3 3.1 $ 11.7 $ 12.9 |
Postemployment Arrangements [Member] | |
Components of Net Periodic Benefit Expense | Postemployment Arrangements The components of net periodic benefit expense for the six months ended June 30, 2018 and 2017 were (in millions): 2018 2017 Service cost $ 2.4 $ 2.2 Interest cost 1.8 1.8 Amortization of prior service cost 1.7 1.8 Amortization of actuarial losses 0.9 0.5 $ 6.8 $ 6.3 |
Supplemental Cash Flow Data (Ta
Supplemental Cash Flow Data (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Data [Abstract] | |
Use of operating capital | The use of operating capital for the six months ended June 30, 2018 and 2017 was (in millions): 2018 2017 (Increase) decrease in accounts receivable $ 1,173.6 $ 460.3 (Increase) decrease in work in process and other current assets (354.4 ) (277.5 ) Increase (decrease) in accounts payable (1,803.2 ) (785.9 ) Increase (decrease) in customer advances, taxes payable and other current liabilities (459.3 ) (490.5 ) Change in other assets and liabilities, net 11.5 (34.9 ) $ (1,431.8 ) $ (1,128.5 ) Income taxes paid $ 276.4 $ 339.0 Interest paid $ 115.4 $ 111.2 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss), net of income taxes, for the six months ended June 30, 2018 and 2017 were (in millions): 2018 Cash Flow Hedge Available-for-Sale Securities Defined Benefit Pension Plans and Postemployment Arrangements Foreign Currency Translation Total January 1 $ (26.3 ) $ (0.3 ) $ (88.4 ) $ (848.0 ) $ (963.0 ) Other comprehensive income (loss) before reclassifications — — — (212.3 ) (212.3 ) Reclassification from accumulated other comprehensive income (loss) 2.0 0.3 5.7 — 8.0 June 30 $ (24.3 ) $ — $ (82.7 ) $ (1,060.3 ) $ (1,167.3 ) 2017 January 1 $ (29.5 ) $ (0.8 ) $ (90.6 ) $ (1,235.1 ) $ (1,356.0 ) Other comprehensive income (loss) before reclassifications — 0.3 — 237.9 238.2 Reclassification from accumulated other comprehensive income (loss) 1.6 — 4.2 — 5.8 June 30 $ (27.9 ) $ (0.5 ) $ (86.4 ) $ (997.2 ) $ (1,112.0 ) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and December 31, 2017 were (in millions): 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 1,913.3 $ 1,913.3 Short-term investments 5.4 5.4 Investment in equity securities 1.6 1.6 Foreign currency derivative instruments $ 0.2 0.2 Liabilities: Interest rate and foreign currency derivative instruments $ 79.3 $ 79.3 Contingent purchase price obligations $ 235.3 235.3 2017 Assets: Cash and cash equivalents $ 3,796.0 $ 3,796.0 Short-term investments 0.4 0.4 Investment in equity securities 1.4 1.4 Foreign currency derivative instruments $ 1.0 1.0 Liabilities: Interest rate and foreign currency derivative instruments $ 39.5 $ 39.5 Contingent purchase price obligations $ 215.6 215.6 |
Changes in Contingent Purchase Price Obligations | Changes in contingent purchase price obligations for the six months ended June 30, 2018 and 2017 were (in millions): 2018 2017 January 1 $ 215.6 $ 386.1 Acquisitions 79.7 22.2 Revaluation and interest 4.9 (0.4 ) Payments (51.3 ) (146.4 ) Foreign currency translation (13.6 ) 6.7 June 30 $ 235.3 $ 268.2 |
Carrying Amount and Fair Value of Financial Assets and Liabilities | The carrying amount and fair value of our financial assets and liabilities at June 30, 2018 and December 31, 2017 were (in millions): 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 1,913.3 $ 1,913.3 $ 3,796.0 $ 3,796.0 Short-term investments 5.4 5.4 0.4 0.4 Investment in equity securities 1.6 1.6 1.4 1.4 Foreign currency derivative instruments 0.2 0.2 1.0 1.0 Investment in equity securities without readily determinable fair value 11.9 11.9 14.4 14.4 Liabilities: Short-term debt $ 20.8 $ 20.8 $ 11.8 $ 11.8 Interest rate and foreign currency derivative instruments 79.3 79.3 39.5 39.5 Contingent purchase price obligations 235.3 235.3 215.6 215.6 Long-term debt, including current portion 4,866.8 4,865.1 4,912.9 5,056.9 |
Presentation of Financial Sta31
Presentation of Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accounting Changes [Line Items] | |||||
Revenue | $ 3,859.6 | $ 3,790.1 | $ 7,489.2 | $ 7,377.6 | |
Operating Expenses | 3,277.3 | 3,218.6 | 6,485.3 | 6,390.4 | |
Operating Income (Loss) | 582.3 | 571.5 | 1,003.9 | 987.2 | |
Interest Expense | 66.4 | $ 62.8 | 128.6 | 121.9 | |
Accounting Standards Update 2017-07 [Member] | |||||
Accounting Changes [Line Items] | |||||
Interest Expense | 12.3 | $ 11.7 | |||
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member] | |||||
Accounting Changes [Line Items] | |||||
Cumulative catch-up adjustment to opening retained earnings | $ 19.5 | ||||
Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member] | |||||
Accounting Changes [Line Items] | |||||
Cumulative catch-up adjustment to opening retained earnings | $ 4.1 | ||||
Adjustments | |||||
Accounting Changes [Line Items] | |||||
Revenue | 49 | 91.4 | |||
Operating Expenses | 41.5 | 77.4 | |||
Operating Income (Loss) | 7.5 | 14 | |||
Amounts without the Adoption of ASC 606 | |||||
Accounting Changes [Line Items] | |||||
Revenue | 3,908.6 | 7,580.6 | |||
Operating Expenses | 3,318.8 | 6,562.7 | |||
Operating Income (Loss) | $ 589.8 | $ 1,017.9 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 3,859.6 | $ 3,790.1 | $ 7,489.2 | $ 7,377.6 | |
Unbilled fees and costs | 709.2 | 752.7 | 709.2 | 752.7 | $ 546.3 |
Media, production and other costs | 644.3 | 648.9 | 644.3 | 648.9 | 564.3 |
Contract assets (Work in process): | 1,353.5 | 1,401.6 | 1,353.5 | 1,401.6 | 1,110.6 |
Contract liabilities (Customer advances) | 1,147.1 | 1,141.1 | 1,147.1 | 1,141.1 | $ 1,266.7 |
North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,097.4 | 2,175.6 | 4,083.1 | 4,314.9 | |
Latin America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 115.1 | 121.2 | 223.5 | 227.8 | |
Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,142.6 | 1,012.5 | 2,212.7 | 1,900.2 | |
Middle East and Africa | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 70.2 | 75.5 | 143.6 | 154.4 | |
Asia Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 434.3 | 405.3 | 826.3 | 780.3 | |
Advertising | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,067.6 | 2,027.2 | 3,968.9 | 3,956.2 | |
CRM Consumer Experience | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 660 | 654.7 | 1,294.9 | 1,268.3 | |
CRM Execution & Support | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 498.7 | 517.3 | 1,007.2 | 1,006.6 | |
Public Relations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 362.7 | 350.3 | 709.1 | 685.4 | |
Healthcare | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 270.6 | $ 240.6 | 509.1 | $ 461.1 | |
Amounts without the Adoption of ASC 606 | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 3,908.6 | 7,580.6 | |||
Amounts without the Adoption of ASC 606 | North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,144.6 | 4,167.3 | |||
Amounts without the Adoption of ASC 606 | Latin America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 115.2 | 223.3 | |||
Amounts without the Adoption of ASC 606 | Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,145.2 | 2,220.8 | |||
Amounts without the Adoption of ASC 606 | Middle East and Africa | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 70.2 | 143.6 | |||
Amounts without the Adoption of ASC 606 | Asia Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 433.4 | 825.6 | |||
Amounts without the Adoption of ASC 606 | Advertising | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,073.8 | 3,982.7 | |||
Amounts without the Adoption of ASC 606 | CRM Consumer Experience | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 704.1 | 1,372.3 | |||
Amounts without the Adoption of ASC 606 | CRM Execution & Support | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 497.2 | 1,007.1 | |||
Amounts without the Adoption of ASC 606 | Public Relations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 362.9 | 709.3 | |||
Amounts without the Adoption of ASC 606 | Healthcare | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 270.6 | $ 509.2 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Income Available for Common Shares: | ||||
Net income - Omnicom Group Inc. | $ 364.2 | $ 328.6 | $ 628.3 | $ 570.4 |
Net income allocated to participating securities | (0.1) | (0.5) | (0.1) | (1) |
Net income available for common shares | $ 364.1 | $ 328.1 | $ 628.2 | $ 569.4 |
Weighted Average Shares: | ||||
Basic | 226.8 | 232.1 | 228.5 | 233.3 |
Dilutive stock options and restricted shares | 1.3 | 1.9 | 1.3 | 1.9 |
Diluted | 228.1 | 234 | 229.8 | 235.2 |
Anti-dilutive stock options and restricted shares | 1 | 1 | 1 | 1 |
Net Income per Share - Omnicom Group Inc.: | ||||
Basic | $ 1.61 | $ 1.41 | $ 2.75 | $ 2.44 |
Diluted | $ 1.60 | $ 1.40 | $ 2.73 | $ 2.42 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, Gross Carrying Value | $ 9,961.8 | $ 9,871.8 | ||
Goodwill, Accumulated Amortization | (519.2) | (534.3) | ||
Goodwill, Net Carrying Value | $ 9,337.5 | $ 8,976.1 | 9,442.6 | 9,337.5 |
Intangible assets: | ||||
Intangible assets:, Gross Carrying Value | 1,104.8 | 1,248.3 | ||
Intangible assets:, Accumulated Amortization | (727.1) | (879.9) | ||
Intangible assets:, Net Carrying Value | 377.7 | 368.4 | ||
Changes in Goodwill | ||||
Goodwill, January 1 | 9,337.5 | 8,976.1 | ||
Goodwill, Acquisitions | 164.9 | 15.8 | ||
Goodwill, Noncontrolling interests in acquired businesses | 55.7 | 14.5 | ||
Goodwill, Contingent purchase price of acquired businesses | 57.5 | 8.5 | ||
Goodwill, Foreign currency translation and other | (173) | 167.1 | ||
Goodwill, June 30 | $ 9,442.6 | $ 9,182 | ||
Purchased and internally developed software | ||||
Intangible assets: | ||||
Intangible assets:, Gross Carrying Value | 369.2 | 368.2 | ||
Intangible assets:, Accumulated Amortization | (312) | (303) | ||
Intangible assets:, Net Carrying Value | 57.2 | 65.2 | ||
Customer related and other | ||||
Intangible assets: | ||||
Intangible assets:, Gross Carrying Value | 735.6 | 880.1 | ||
Intangible assets:, Accumulated Amortization | (415.1) | (576.9) | ||
Intangible assets:, Net Carrying Value | $ 320.5 | $ 303.2 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Credit Facilities [Abstract] | ||
Available and unused credit lines | $ 3,720.8 | $ 3,681 |
Short-Term Borrowings [Abstract] | ||
Short-term debt | 20.8 | 11.8 |
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | 4,900 | 4,900 |
Unamortized premium (discount), net | 5.6 | 6.2 |
Unamortized debt issuance costs | (18.3) | (20.3) |
Unamortized deferred gain from settlement of interest rate swaps | 57.2 | 66.4 |
Fair value adjustment attributed to outstanding interest rate swaps | (77.7) | (39.4) |
Long-term debt, total | 4,866.8 | 4,912.9 |
Long-term debt, current portion | 0 | 0 |
Long-Term Debt | 4,866.8 | 4,912.9 |
Interest Rate Swaps on 2024 Notes [Member] | ||
Long-Term Debt [Abstract] | ||
Interest rate swaps, liability, at fair value | 36.3 | |
Interest rate swaps, notional amount | 750 | |
Interest Rate Swaps on 2026 Notes [Member] | ||
Long-Term Debt [Abstract] | ||
Interest rate swaps, liability, at fair value | 41.4 | |
Interest rate swaps, notional amount | 500 | |
Credit Facility | ||
Credit Facilities [Abstract] | ||
Credit Facility, maximum borrowing capacity | $ 2,500 | |
Credit Facility, expiration date | Jul. 31, 2021 | |
Available and unused credit lines | $ 2,500 | 2,500 |
Credit Facility, covenant terms | The Credit Facility contains financial covenants that require us to maintain a Leverage Ratio of consolidated indebtedness to consolidated EBITDA of no more than 3 times for the most recently ended 12-month period (EBITDA is defined as earnings before interest, taxes, depreciation and amortization) and an Interest Coverage Ratio of consolidated EBITDA to interest expense of at least 5 times for the most recently ended 12-month period. | |
Credit Facility, covenant compliance | At June 30, 2018 we were in compliance with these covenants as our Leverage Ratio was 2.1 times and our Interest Coverage Ratio was 10.3 times. | |
Commercial Paper [Member] | ||
Credit Facilities [Abstract] | ||
Credit Facility, maximum borrowing capacity | $ 2,000 | |
Uncommitted credit lines | ||
Credit Facilities [Abstract] | ||
Available and unused credit lines | 1,220.8 | 1,181 |
6.25% Senior Notes due 2019 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 500 | 500 |
Long-term debt, interest rate | 6.25% | |
Long-term debt, maturity date | Jul. 15, 2019 | |
4.45% Senior Notes due 2020 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 1,000 | 1,000 |
Long-term debt, interest rate | 4.45% | |
Long-term debt, maturity date | Aug. 15, 2020 | |
3.625% Senior Notes due 2022 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 1,250 | 1,250 |
Long-term debt, interest rate | 3.625% | |
Long-term debt, maturity date | May 1, 2022 | |
3.65% Senior Notes due 2024 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 750 | 750 |
Long-term debt, interest rate | 3.65% | |
Long-term debt, maturity date | Nov. 1, 2024 | |
3.60% Senior Notes due 2026 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 1,400 | $ 1,400 |
Long-term debt, interest rate | 3.60% | |
Long-term debt, maturity date | Apr. 15, 2026 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||||
Revenue | $ 3,859.6 | $ 3,790.1 | $ 7,489.2 | $ 7,377.6 |
Americas | ||||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||||
Revenue | 2,212.5 | 2,296.8 | 4,306.6 | 4,542.7 |
Long-lived assets and goodwill | 6,825.4 | 6,654.2 | 6,825.4 | 6,654.2 |
United States | ||||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||||
Revenue | 1,990.8 | 2,060.9 | 3,871.9 | 4,072.7 |
EMEA | ||||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||||
Revenue | 1,212.8 | 1,088 | 2,356.3 | 2,054.6 |
Long-lived assets and goodwill | 2,757.9 | 2,678 | 2,757.9 | 2,678 |
Asia Pacific | ||||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||||
Revenue | 434.3 | 405.3 | 826.3 | 780.3 |
Long-lived assets and goodwill | $ 556.5 | $ 537.5 | $ 556.5 | $ 537.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Abstract] | ||
Effective tax rate | 25.20% | 30.80% |
Income tax expense reduction, resolution of foreign tax claims and reduction of income tax applied against overall foreign earnings | $ 25 | |
Unrecognized tax benefits | 166.3 | |
Unrecognized tax benefits that would impact effective tax rate | $ 149 |
Pension and Other Postemploym38
Pension and Other Postemployment Benefits (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Pension Plans [Member] | ||
Components of Net Periodic Benefit Expense | ||
Service cost | $ 4 | $ 5.3 |
Interest cost | 3.6 | 3.5 |
Expected return on plan assets | (1.4) | (1.4) |
Amortization of prior service cost | 2.2 | 2.4 |
Amortization of actuarial losses | 3.3 | 3.1 |
Net periodic benefit expense | 11.7 | 12.9 |
Employer contributions | 1.1 | 0.7 |
Postemployment Arrangements [Member] | ||
Components of Net Periodic Benefit Expense | ||
Service cost | 2.4 | 2.2 |
Interest cost | 1.8 | 1.8 |
Amortization of prior service cost | 1.7 | 1.8 |
Amortization of actuarial losses | 0.9 | 0.5 |
Net periodic benefit expense | $ 6.8 | $ 6.3 |
Supplemental Cash Flow Data (De
Supplemental Cash Flow Data (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Change in Operating Capital [Abstract] | ||
(Increase) decrease in accounts receivable | $ 1,173.6 | $ 460.3 |
(Increase) decrease in work in process and other current assets | (354.4) | (277.5) |
Increase (decrease) in accounts payable | (1,803.2) | (785.9) |
Increase (decrease) in customer advances, taxes payable and other current liabilities | (459.3) | (490.5) |
Change in other assets and liabilities, net | 11.5 | (34.9) |
Use of operating capital | (1,431.8) | (1,128.5) |
Income taxes paid | 276.4 | 339 |
Interest paid | $ 115.4 | $ 111.2 |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | $ (963) | $ (1,356) |
Other comprehensive income (loss) before reclassifications | (212.3) | 238.2 |
Reclassification from accumulated other comprehensive income (loss) | 8 | 5.8 |
June 30 | (1,167.3) | (1,112) |
Cash Flow Hedge | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (26.3) | (29.5) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss) | 2 | 1.6 |
June 30 | (24.3) | (27.9) |
Available-for-Sale Securities | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (0.3) | (0.8) |
Other comprehensive income (loss) before reclassifications | 0 | 0.3 |
Reclassification from accumulated other comprehensive income (loss) | 0.3 | 0 |
June 30 | 0 | (0.5) |
Defined Benefit Pension Plans and Postemployment Arrangements | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (88.4) | (90.6) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss) | 5.7 | 4.2 |
June 30 | (82.7) | (86.4) |
Foreign Currency Translation | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (848) | (1,235.1) |
Other comprehensive income (loss) before reclassifications | (212.3) | 237.9 |
Reclassification from accumulated other comprehensive income (loss) | 0 | 0 |
June 30 | $ (1,060.3) | $ (997.2) |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Assets: | |||
Cash and cash equivalents | $ 1,913.3 | $ 3,796 | |
Short-term investments | 5.4 | 0.4 | |
Investment in equity securities | 1.6 | 1.4 | |
Foreign currency derivative instruments | 0.2 | 1 | |
Investment in equity securities without readily determinable fair value | 11.9 | 14.4 | |
Liabilities: | |||
Short-term debt | 20.8 | 11.8 | |
Interest rate and foreign currency derivative instruments | 79.3 | 39.5 | |
Contingent purchase price obligations | 235.3 | 215.6 | |
Long-term debt, including current portion | 4,865.1 | 5,056.9 | |
Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | 1,913.3 | 3,796 | |
Short-term investments | 5.4 | 0.4 | |
Investment in equity securities | 1.6 | 1.4 | |
Foreign currency derivative instruments | 0.2 | 1 | |
Investment in equity securities without readily determinable fair value | 11.9 | 14.4 | |
Liabilities: | |||
Short-term debt | 20.8 | 11.8 | |
Interest rate and foreign currency derivative instruments | 79.3 | 39.5 | |
Contingent purchase price obligations | 235.3 | 215.6 | |
Long-term debt, including current portion | 4,866.8 | 4,912.9 | |
Contingent purchase price obligations | |||
Changes in Contingent Purchase Price Obligations [Roll Forward] | |||
January 1 | 215.6 | $ 386.1 | |
Acquisitions | 79.7 | 22.2 | |
Revaluation and interest | 4.9 | (0.4) | |
Payments | (51.3) | (146.4) | |
Foreign currency translation | (13.6) | 6.7 | |
June 30 | 235.3 | $ 268.2 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Cash and cash equivalents | 1,913.3 | 3,796 | |
Short-term investments | 5.4 | 0.4 | |
Investment in equity securities | 1.6 | 1.4 | |
Foreign currency derivative instruments | 0.2 | 1 | |
Liabilities: | |||
Interest rate and foreign currency derivative instruments | 79.3 | 39.5 | |
Contingent purchase price obligations | 235.3 | 215.6 | |
Fair Value, Measurements, Recurring [Member] | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 1,913.3 | 3,796 | |
Short-term investments | 5.4 | 0.4 | |
Investment in equity securities | 1.6 | 1.4 | |
Fair Value, Measurements, Recurring [Member] | Level 2 | |||
Assets: | |||
Foreign currency derivative instruments | 0.2 | 1 | |
Liabilities: | |||
Interest rate and foreign currency derivative instruments | 79.3 | 39.5 | |
Fair Value, Measurements, Recurring [Member] | Level 3 | |||
Liabilities: | |||
Contingent purchase price obligations | $ 235.3 | $ 215.6 |