Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 15, 2021 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 1-10551 | |
Entity Registrant Name | OMNICOM GROUP INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-1514814 | |
Entity Address, Address Line One | 280 Park Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 415-3600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 215,080,771 | |
Entity Central Index Key | 0000029989 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Amendment Flag | false | |
Common Stock, $0.15 Par Value | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.15 Par Value | |
Trading Symbol | OMC | |
Security Exchange Name | NYSE | |
0.800% Senior Notes due 2027 | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 0.800% Senior Notes due 2027 | |
Trading Symbol | OMC/27 | |
Security Exchange Name | NYSE | |
1.400% Senior Notes due 2031 | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 1.400% Senior Notes due 2031 | |
Trading Symbol | OMC/31 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 4,897.3 | $ 5,600.5 |
Accounts receivable, net of allowance for doubtful accounts of $27.2 and $30.4 | 6,633.2 | 7,813.4 |
Work in process | 1,138.7 | 1,101.2 |
Other current assets | 1,062.9 | 1,075 |
Total Current Assets | 13,732.1 | 15,590.1 |
Property and Equipment at cost, less accumulated depreciation of $1,155.7 and $1,156.7 | 564.2 | 585.2 |
Operating Lease Right-Of-Use Assets | 1,176.5 | 1,223.4 |
Equity Method Investments | 79.7 | 85.3 |
Goodwill | 9,541.5 | 9,609.7 |
Intangible Assets, net of accumulated amortization of $824.2 and $817.2 | 280.8 | 298.5 |
Other Assets | 239.5 | 255 |
TOTAL ASSETS | 25,614.3 | 27,647.2 |
Current Liabilities: | ||
Accounts payable | 9,465.8 | 11,513 |
Customer advances | 1,278 | 1,361.3 |
Short-term debt | 5.9 | 3.9 |
Taxes payable | 276.3 | 244.5 |
Other current liabilities | 2,445.9 | 2,402.4 |
Total Current Liabilities | 13,471.9 | 15,525.1 |
Long-Term Liabilities | 989.4 | 970.7 |
Long-Term Liability - Operating Leases | 1,062.7 | 1,114 |
Long-Term Debt | 5,754.4 | 5,807.3 |
Deferred Tax Liabilities | 434.4 | 443.5 |
Commitments and Contingent Liabilities (Note 11) | ||
Temporary Equity - Redeemable Noncontrolling Interests | 209.8 | 209.7 |
Shareholders’ Equity: | ||
Preferred stock | 0 | 0 |
Common stock | 44.6 | 44.6 |
Additional paid-in capital | 769.7 | 747.8 |
Retained earnings | 8,327.5 | 8,190.6 |
Accumulated other comprehensive income (loss) | (1,246.2) | (1,213.8) |
Treasury stock, at cost | (4,684.4) | (4,684.8) |
Total Shareholders’ Equity | 3,211.2 | 3,084.4 |
Noncontrolling interests | 480.5 | 492.5 |
Total Equity | 3,691.7 | 3,576.9 |
TOTAL LIABILITIES AND EQUITY | $ 25,614.3 | $ 27,647.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets (Parenthetical) [Abstract] | ||
Allowance for doubtful accounts | $ 27.2 | $ 30.4 |
Accumulated depreciation | 1,155.7 | 1,156.7 |
Intangible assets, accumulated amortization | $ 824.2 | $ 817.2 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 3,426.9 | $ 3,406.9 |
Salary and service costs | 2,545 | 2,533.3 |
Occupancy and other costs | 291.6 | 309.6 |
Cost of services | 2,836.6 | 2,842.9 |
Selling, general and administrative expenses | 71.6 | 86.8 |
Depreciation and amortization | 53.3 | 57 |
Operating Expenses | 2,961.5 | 2,986.7 |
Operating Profit | 465.4 | 420.2 |
Interest Expense | 53.8 | 58.5 |
Interest Income | 6.3 | 12.7 |
Income Before Income Taxes and Income (Loss) From Equity Method Investments | 417.9 | 374.4 |
Income Tax Expense | 111.9 | 97.4 |
Income (Loss) From Equity Method Investments | 0 | (5.3) |
Net Income | 306 | 271.7 |
Net Income Attributed To Noncontrolling Interests | 18.2 | 13.6 |
Net Income - Omnicom Group Inc. | $ 287.8 | $ 258.1 |
Net Income Per Share - Omnicom Group Inc.: | ||
Basic | $ 1.33 | $ 1.19 |
Diluted | $ 1.33 | $ 1.19 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 306 | $ 271.7 |
Cash flow hedge: | ||
Amortization of loss included in interest expense | 1.4 | 1.3 |
Income tax effect | (0.4) | (0.4) |
Other comprehensive income (loss), Cash flow hedge | 1 | 0.9 |
Defined benefit pension plans and postemployment arrangements: | ||
Amortization of prior service cost | 1.2 | 1.3 |
Amortization of actuarial losses | 3.3 | 1.9 |
Income tax effect | (1.8) | (1) |
Other comprehensive income (loss), Defined benefit pension plans and postemployment arrangements | 2.7 | 2.2 |
Foreign currency translation adjustment | (46.9) | (371.1) |
Other Comprehensive Income (Loss) | (43.2) | (368) |
Comprehensive Income (Loss) | 262.8 | (96.3) |
Comprehensive Income (Loss) Attributed To Noncontrolling Interests | 7.4 | (23.7) |
Comprehensive Income (Loss) - Omnicom Group Inc. | $ 255.4 | $ (72.6) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Shareholders’ Equity | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2019 | $ 760.9 | $ 7,806.3 | $ (1,197.6) | $ (4,560.3) | $ 519.8 | |||
Net Income | $ 271.7 | 258.1 | 13.6 | |||||
Other comprehensive income (loss) | (368) | (330.7) | (37.3) | |||||
Dividends to noncontrolling interests | (10.4) | |||||||
Acquisition of noncontrolling interests | (7.7) | (8.7) | ||||||
Change in temporary equity | (8.2) | |||||||
Common stock dividends declared | (139.9) | |||||||
Share-based compensation | 18.7 | |||||||
Stock issued, share-based compensation | (7.9) | 11.3 | ||||||
Common stock repurchased | (200) | |||||||
Ending Balance at Mar. 31, 2020 | $ 2,924.6 | $ 44.6 | 755.8 | 7,924.5 | (1,528.3) | (4,749) | $ 2,447.6 | 477 |
Dividends Declared Per Common Share | $ 0.65 | |||||||
Common Stock, shares issued | 297.2 | |||||||
Beginning Balance at Dec. 31, 2020 | $ 3,576.9 | 747.8 | 8,190.6 | (1,213.8) | (4,684.8) | 492.5 | ||
Net Income | 306 | 287.8 | 18.2 | |||||
Other comprehensive income (loss) | (43.2) | (32.4) | (10.8) | |||||
Dividends to noncontrolling interests | (13.6) | |||||||
Acquisition of noncontrolling interests | 1 | (5.8) | ||||||
Change in temporary equity | (2.8) | |||||||
Common stock dividends declared | (150.9) | |||||||
Share-based compensation | 20.8 | |||||||
Stock issued, share-based compensation | 2.9 | 1.1 | ||||||
Common stock repurchased | (0.7) | |||||||
Ending Balance at Mar. 31, 2021 | $ 3,691.7 | $ 44.6 | $ 769.7 | $ 8,327.5 | $ (1,246.2) | $ (4,684.4) | $ 3,211.2 | $ 480.5 |
Dividends Declared Per Common Share | $ 0.70 | |||||||
Common Stock, shares issued | 297.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 306 | $ 271.7 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization of right-of-use assets | 33.4 | 36.2 |
Amortization of intangible assets | 19.9 | 20.8 |
Amortization of net deferred gain on interest rate swaps | (1.3) | (4.1) |
Share-based compensation | 20.8 | 18.7 |
Other, net | 3.8 | 18.7 |
Use of operating capital | (843.5) | (1,349.2) |
Net Cash Used In Operating Activities | (460.9) | (987.2) |
Cash Flows from Investing Activities: | ||
Capital expenditures | (12.4) | (26.4) |
Proceeds from disposition of subsidiaries and sale of investments | 1.6 | 2.1 |
Net Cash Used In Investing Activities | (10.8) | (24.3) |
Cash Flows from Financing Activities: | ||
Proceeds from borrowings | 0 | 594 |
Repayment of debt | 0 | (600) |
Change in short-term debt | 2.2 | 1.7 |
Dividends paid to common shareholders | (140.1) | (141.7) |
Repurchases of common stock | (0.7) | (200) |
Proceeds from stock plans | 3.4 | 1.4 |
Acquisition of additional noncontrolling interests | (2.2) | (10.4) |
Dividends paid to noncontrolling interest shareholders | (13.6) | (10.4) |
Payment of contingent purchase price obligations | (6.9) | (1.4) |
Other, net | (17.8) | (24.4) |
Net Cash Used In Financing Activities | (175.7) | (391.2) |
Effect of foreign exchange rate changes on cash and cash equivalents | (55.8) | (210.5) |
Net Decrease in Cash and Cash Equivalents | (703.2) | (1,613.2) |
Cash and Cash Equivalents at the Beginning of Period | 5,600.5 | 4,305.7 |
Cash and Cash Equivalents at the End of Period | $ 4,897.3 | $ 2,692.5 |
Presentation of Financial State
Presentation of Financial Statements | 3 Months Ended |
Mar. 31, 2021 | |
Presentation of Financial Statements [Abstract] | |
Presentation of Financial Statements | Presentation of Financial Statements The terms “Omnicom,” “the Company,” “we,” “our” and “us” each refer to Omnicom Group Inc. and its subsidiaries, unless the context indicates otherwise. The accompanying unaudited consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP or GAAP, for interim financial information and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosure have been condensed or omitted. In our opinion, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation, in all material respects, of the information contained herein. These unaudited consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020, or 2020 10-K. Results for the interim periods are not necessarily indicative of results that may be expected for the year. Risks and Uncertainties - Ongoing Impact of the COVID-19 Pandemic on our Business We continued to experience the negative effect on the global economy from the COVID-19 pandemic in the first quarter of 2021. As the COVID-19 pandemic did not negatively impact our major markets until late in the first quarter of 2020, the negative effects on our revenue continued until we completely cycled through the end of the first quarter of 2021. Although the impact was mixed by geography and discipline, revenue for the three months ended March 31, 2021 increased $20.0 million, or 0.6%, compared to the three months ended March 31, 2020. The increase in revenue primarily reflects the strengthening of certain foreign currencies, primarily the Euro and the British Pound, against the U.S. Dollar, substantially offset by a decrease in client spending attributable to the COVID-19 pandemic (see Note 2). As long as the COVID-19 pandemic remains a public health threat, global economic conditions will continue to be volatile depending on several factors, including new information concerning the severity of the pandemic, government actions to mitigate the effects of the pandemic in the near-term, and the resulting impact on our clients' spending plans. We expect global economic performance and the performance of our businesses to vary by geography and discipline until the impact of the COVID-19 pandemic on the global economy subsidies. We will continue to assess the impact of the COVID-19 pandemic on our business and will respond accordingly. Accounting Changes On January 1, 2021, we adopted FASB ASU 2019-12, Income Taxes (Topic 740), or ASU 2019-12, which, among other things, amended the rules for recognizing deferred taxes for investments, performing intra-period tax allocations and calculating income taxes in interim periods and reduced complexity in certain areas, including the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating taxes to members of a consolidated group. The adoption of ASU 2019-12 did not have a material effect on our results of operations and financial position. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue [Abstract] | |
Revenue | Revenue Nature of our services We provide an extensive range of advertising, marketing and corporate communications services through various client-centric networks that are organized to meet specific client objectives. Our branded networks and agencies operate in all major markets and provide services in the following fundamental disciplines: advertising, customer relationship management, or CRM, public relations, and healthcare. Advertising includes creative services, as well as strategic media planning and buying and data analytics services. Public relations services include corporate communications, crisis management, public affairs and media and media relations services. Healthcare includes advertising and media services to global healthcare clients. In an effort to better capture the expanding scope of our services, effective January 1, 2021, we realigned the classification of certain services primarily within our CRM Consumer Experience discipline. As a result, our CRM discipline has been reclassified into four categories: CRM Precision Marketing, which includes our precision marketing and digital/direct marketing agencies; CRM Commerce and Brand Consulting that is primarily comprised of Omnicom Commerce Group, including our shopper marketing businesses, and our Brand Consulting agencies; CRM Experiential, which includes our experiential marketing agencies and events businesses; and CRM Execution & Support, which includes field marketing, merchandising and point of sale, as well as other specialized marketing and custom communications services. At the core of all our services is the ability to create or develop a client’s marketing or corporate communications message into content that can be delivered to a target audience across different communications mediums. Reclassifications have been made to the prior period revenue by discipline information to conform to current period presentation. Revenue by discipline was (in millions): Three Months Ended March 31, 2021 2020 Advertising $ 2,003.7 $ 1,933.3 CRM Precision Marketing 269.5 232.0 CRM Commerce and Brand Consulting 214.5 220.9 CRM Experiential 88.4 131.3 CRM Execution & Support 246.6 273.7 Public Relations 317.5 333.7 Healthcare 286.7 282.0 $ 3,426.9 $ 3,406.9 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 (see Note 1). Revenue in our principal geographic markets was (in millions): Three Months Ended March 31, 2021 2020 Americas: North America $ 1,972.5 $ 1,997.3 Latin America 63.2 71.4 EMEA: Europe 941.0 923.4 Middle East and Africa 50.2 55.5 Asia-Pacific 400.0 359.3 $ 3,426.9 $ 3,406.9 The Americas is comprised of North America, which includes the United States, Canada and Puerto Rico, and Latin America, which includes South America and Mexico. EMEA is comprised of Europe, the Middle East and Africa. Asia-Pacific includes Australia, Greater China, India, Japan, Korea, New Zealand, Singapore and other Asian countries. Revenue in the United States for the three months ended March 31, 2021 and 2020 was $1,868.1 million and $1,894.2 million, respectively. Contract assets and liabilities Work in process includes contract assets, unbilled fees and costs, and media and production costs. Contract liabilities primarily consist of customer advances. Work in process and contract liabilities were (in millions): March 31, 2021 December 31, 2020 March 31, 2020 Work in process: Contract assets and unbilled fees and costs $ 626.0 $ 501.1 $ 783.7 Media and production costs 512.7 600.1 529.5 $ 1,138.7 $ 1,101.2 $ 1,313.2 Contract liabilities: Customer advances $ 1,278.0 $ 1,361.3 $ 1,075.7 Work in process represents accrued costs incurred on behalf of customers, including media and production costs, and fees and other third-party costs that have not yet been billed. Media and production costs are billed during the production process in accordance with the terms of the client contract. Contract assets primarily include incentive fees, which are not material and will be billed to clients in accordance with the terms of the client contract. Substantially all unbilled fees and costs will be billed within the next 30 days. The contract liability primarily represents advance billings to customers in accordance with the terms of the client contracts, primarily for the reimbursement of third-party costs that are generally incurred in the near term. No impairment losses to the contract assets were recorded in the three months ended March 31, 2021 and 2020. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2021 | |
Net Income per Share [Abstract] | |
Net Income per Share | Net Income per Share The computations of basic and diluted net income per share were (in millions, except per share amounts): Three Months Ended March 31, 2021 2020 Net Income - Omnicom Group Inc. $ 287.8 $ 258.1 Weighted Average Shares: Basic 215.6 216.6 Dilutive stock options and restricted shares 1.2 0.9 Diluted 216.8 217.5 Anti-dilutive stock options and restricted shares 0.7 0.9 Net Income per Share - Omnicom Group Inc.: Basic $ 1.33 $ 1.19 Diluted $ 1.33 $ 1.19 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets were (in millions): March 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Goodwill $ 10,068.3 $ (526.8) $ 9,541.5 $ 10,141.6 $ (531.9) $ 9,609.7 Intangible assets: Purchased and internally developed software $ 378.8 $ (309.4) $ 69.4 $ 377.6 $ (307.0) $ 70.6 Customer related and other 726.2 (514.8) 211.4 738.1 (510.2) 227.9 $ 1,105.0 $ (824.2) $ 280.8 $ 1,115.7 $ (817.2) $ 298.5 Changes in goodwill were (in millions): Three Months Ended March 31, 2021 2020 January 1 $ 9,609.7 $ 9,440.5 Acquisitions — 1.7 Dispositions — (0.1) Foreign currency translation (68.2) (243.5) March 31 $ 9,541.5 $ 9,198.6 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt [Abstract] | |
Debt | Debt Credit Facilities We maintain a $2.5 billion multi-currency revolving credit facility, or Credit Facility, that matures on February 14, 2025. We have uncommitted credit lines aggregating $1.0 billion and the ability to issue up to $2 billion of commercial paper. These facilities provide additional liquidity sources for operating capital and general corporate purposes. Our $400 million 364-day revolving credit facility, or 364 Day Credit Facility, that we entered into to mitigate any potential impact on our liquidity from the COVID-19 pandemic expired on April 2, 2021 without being drawn. At March 31, 2021, there were no outstanding commercial paper issuances or borrowings under the Credit Facility, the 364 Day Credit Facility or the uncommitted credit lines. The Credit Facility contains and,prior to its expiration, the 364 Day Credit Facility contained, a financial covenant that requires us to maintain a Leverage Ratio of consolidated indebtedness to consolidated EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash charges) of no more than 3.5 times for the most recently ended 12-month period. We amended the Credit Facility and the 364 Day Credit Facility in October 2020 to increase the maximum Leverage Ratio to 4.0 times through December 31, 2021 for the Credit Agreement and to 4.0 times through the maturity of the 364 Day Credit Facility. At March 31, 2021, we were in compliance with these covenants as our Leverage Ratio was 2.8 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 March 31, 2021 and December 31, 2020 of $5.9 million and $3.9 million, respectively, represented bank overdrafts and short-term borrowings primarily of our international subsidiaries. Due to the short-term nature of this debt, carrying value approximates fair value. Long-Term Debt Long-term debt was (in millions): March 31, 2021 December 31, 2020 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 €500 Million 0.80% Senior Notes due 2027 585.9 611.5 2.45% Senior Notes due 2030 600.0 600.0 4.20% Senior Notes due 2030 600.0 600.0 €500 Million 1.40% Senior Notes due 2031 585.9 611.5 5,771.8 5,823.0 Unamortized premium (discount), net (5.2) (5.1) Unamortized debt issuance costs (25.6) (27.0) Unamortized deferred gain from settlement of interest rate swaps 13.4 16.4 Long-term debt $ 5,754.4 $ 5,807.3 The 2.45% Senior Notes and the 4.20% Senior Notes are senior unsecured obligations of Omnicom that rank equal in right of payment with all existing and future unsecured senior indebtedness. Omnicom and its wholly owned finance subsidiary, Omnicom Capital Inc., or OCI, are co-obligors under the senior notes due 2022, 2024 and 2026. These notes are a joint and several liability of Omnicom and OCI, and Omnicom unconditionally guarantees OCI’s obligations with respect to the notes. OCI provides funding for our operations by incurring debt and lending the proceeds to our operating subsidiaries. OCI’s assets primarily consist of cash and cash equivalents and intercompany loans made to our operating subsidiaries, and the related interest receivable. There are no restrictions on the ability of OCI or Omnicom to obtain funds from our subsidiaries through dividends, loans or advances. Such notes are senior unsecured obligations that rank equal in right of payment with all existing and future unsecured senior indebtedness. Omnicom and OCI have, jointly and severally, fully and unconditionally guaranteed the obligations of Omnicom Finance Holdings plc, or OFHP, a U.K.-based wholly owned subsidiary of Omnicom, with respect to the Euro denominated notes due 2027 and 2031. OFHP’s assets consist of its investments in several wholly owned finance companies that function as treasury centers that provide funding for various operating companies in Europe, Brazil, Australia and other countries in the Asia-Pacific region. The finance companies’ assets consist of cash and cash equivalents and intercompany loans that they make or have made to the operating companies in their respective regions and the related interest receivable. There are no restrictions on the ability of Omnicom, OCI or OFHP to obtain funds from their subsidiaries through dividends, loans or advances. The Euro denominated notes and the related guarantees are senior unsecured obligations that rank equal in right of payment with all existing and future unsecured senior indebtedness of OFHP and each of Omnicom and OCI, respectively. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2021 | |
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 or practice areas. Our networks, virtual client networks and agencies increasingly share clients and provide clients with integrated services. The main economic components of each agency are employee compensation and related costs and direct service costs and occupancy and other costs which include rent and occupancy costs, technology costs and other overhead expenses. Therefore, given these similarities, we aggregate our operating segments, which are our 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 were (in millions): Americas EMEA Asia-Pacific March 31, 2021 Revenue $ 2,035.7 $ 991.2 $ 400.0 Long-lived assets and goodwill 7,562.7 3,074.7 644.8 March 31, 2020 Revenue $ 2,068.7 $ 978.9 $ 359.3 Long-lived assets and goodwill 7,685.0 2,893.6 607.6 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the three months ended March 31, 2021 increased period-over-period to 26.8% from 26.0%. The effective tax rate for the first quarter of 2020 reflects the recognition of certain domestic tax credits. At March 31, 2021, our unrecognized tax benefits were $181.2 million. Of this amount, approximately $172.2 million would affect our effective tax rate upon resolution of the uncertain tax positions. |
Pension and Other Postemploymen
Pension and Other Postemployment Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Pension and Other Postemployment Benefits [Abstract] | |
Pension and Other Postemployment Benefits | Pension and Other Postemployment Benefits Defined Benefit Pension Plans The components of net periodic benefit expense were (in millions): Three Months Ended March 31, 2021 2020 Service cost $ 1.4 $ 2.0 Interest cost 0.8 1.3 Expected return on plan assets (0.2) (0.3) Amortization of prior service cost 0.2 0.2 Amortization of actuarial losses 2.3 1.4 $ 4.5 $ 4.6 We contributed $0.2 million and $0.1 million to our defined benefit pension plans in the three months ended March 31, 2021 and 2020, respectively. Postemployment Arrangements The components of net periodic benefit expense were (in millions): Three Months Ended March 31, 2021 2020 Service cost $ 1.2 $ 1.2 Interest cost 0.5 0.9 Amortization of prior service cost 1.0 1.1 Amortization of actuarial losses 1.0 0.5 $ 3.7 $ 3.7 |
COVID-19 Repositioning Costs
COVID-19 Repositioning Costs | 3 Months Ended |
Mar. 31, 2021 | |
COVID-19 Repositioning Costs [Abstract] | |
COVID-19 Repositioning Costs | COVID-19 Repositioning Costs In the second quarter of 2020, in response to the COVID-19 pandemic, we incurred repositioning costs to align our cost structure and reduce our workforce and facility requirements. At March 31, 2021 the remaining liability for the COVID-19 repositioning costs was (in millions): January 1, 2021 $ 83.8 Payments (15.7) March 31, 2021 $ 68.1 We expect that substantially all the remaining liability will be paid by the end of 2021. |
Supplemental Cash Flow Data
Supplemental Cash Flow Data | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Data [Abstract] | |
Supplemental Cash Flow Data | Supplemental Cash Flow Data The change in operating capital was (in millions): Three Months Ended March 31, 2021 2020 (Increase) decrease in accounts receivable $ 1,095.5 $ 876.6 (Increase) decrease in work in process and other current assets (55.3) (115.0) Increase (decrease) in accounts payable (1,953.8) (2,084.9) Increase (decrease) in customer advances, taxes payable and other current liabilities 63.0 (14.1) Change in other assets and liabilities, net 7.1 (11.8) Increase (decrease) $ (843.5) $ (1,349.2) Income taxes paid $ 42.7 $ 50.5 Interest paid $ 5.3 $ 31.2 Supplemental non-cash information related to leases was (in millions): Three Months Ended March 31, 2021 2020 Net increase in lease liability: Operating leases $ 38.7 $ 72.0 Finance leases $ 11.7 $ 8.5 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent LiabilitiesIn the ordinary course of business, we are involved in various legal proceedings. We do not presently expect that these proceedings will have a material adverse effect on our results of operations or financial position. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), net of income taxes were (in millions): Cash Defined Benefit Pension Plans and Postemployment Arrangements Foreign Total Three Months Ended March 31, 2021 January 1 $ (20.1) $ (123.2) $ (1,070.5) $ (1,213.8) Other comprehensive income (loss) before reclassifications — — (36.1) (36.1) Reclassification from accumulated other comprehensive income (loss) 1.0 2.7 — 3.7 March 31 $ (19.1) $ (120.5) $ (1,106.6) $ (1,246.2) Three Months Ended March 31, 2020 January 1 $ (24.0) $ (112.1) $ (1,061.5) $ (1,197.6) Other comprehensive income (loss) before reclassifications — — (333.8) (333.8) Reclassification from accumulated other comprehensive income (loss) 0.9 2.2 — 3.1 March 31 $ (23.1) $ (109.9) $ (1,395.3) $ (1,528.3) |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value [Abstract] | |
Fair Value | Fair Value Financial assets and liabilities measured at fair value on a recurring basis were (in millions): March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 4,897.3 $ 4,897.3 Marketable equity investments 1.4 1.4 Foreign currency derivatives $ 0.5 0.5 Liabilities: Foreign currency derivatives $ 0.5 $ 0.5 Contingent purchase price obligations $ 67.7 67.7 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 5,600.5 $ 5,600.5 Marketable equity investments 1.6 1.6 Foreign currency derivative instruments $ 0.6 0.6 Liabilities: Foreign currency derivatives 0.3 0.3 Contingent purchase price obligations $ 71.9 71.9 Changes in contingent purchase price obligations were (in millions): Three Months Ended March 31, 2021 2020 January 1 $ 71.9 $ 107.7 Acquisitions 1.3 8.1 Revaluation and interest 0.4 0.6 Payments (5.4) — Foreign currency translation (0.5) (2.8) March 31 $ 67.7 $ 113.6 The carrying amount and fair value of our financial assets and liabilities were (in millions): March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Assets: Cash and cash equivalents $ 4,897.3 $ 4,897.3 $ 5,600.5 $ 5,600.5 Marketable equity securities 1.4 1.4 1.6 1.6 Non-marketable equity securities 6.9 6.9 8.9 8.9 Foreign currency derivatives 0.5 0.5 0.6 0.6 Liabilities: Short-term debt $ 5.9 $ 5.9 $ 3.9 $ 3.9 Foreign currency derivatives 0.5 0.5 0.3 0.3 Contingent purchase price obligations 67.7 67.7 71.9 71.9 Long-term debt, including current portion 5,754.4 6,143.1 5,807.3 6,380.6 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated events subsequent to the balance sheet date and determined that there have not been any events that have occurred that would require additional adjustments to or disclosures in these consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |
Work in Process and Contract Liabilities | Work in process and contract liabilities were (in millions): March 31, 2021 December 31, 2020 March 31, 2020 Work in process: Contract assets and unbilled fees and costs $ 626.0 $ 501.1 $ 783.7 Media and production costs 512.7 600.1 529.5 $ 1,138.7 $ 1,101.2 $ 1,313.2 Contract liabilities: Customer advances $ 1,278.0 $ 1,361.3 $ 1,075.7 |
Geographic Markets [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Revenue in our principal geographic markets was (in millions): Three Months Ended March 31, 2021 2020 Americas: North America $ 1,972.5 $ 1,997.3 Latin America 63.2 71.4 EMEA: Europe 941.0 923.4 Middle East and Africa 50.2 55.5 Asia-Pacific 400.0 359.3 $ 3,426.9 $ 3,406.9 |
Discipline [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Revenue by discipline was (in millions): Three Months Ended March 31, 2021 2020 Advertising $ 2,003.7 $ 1,933.3 CRM Precision Marketing 269.5 232.0 CRM Commerce and Brand Consulting 214.5 220.9 CRM Experiential 88.4 131.3 CRM Execution & Support 246.6 273.7 Public Relations 317.5 333.7 Healthcare 286.7 282.0 $ 3,426.9 $ 3,406.9 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Net Income per Share [Abstract] | |
Computations of Basic and Diluted Net Income per Share | The computations of basic and diluted net income per share were (in millions, except per share amounts): Three Months Ended March 31, 2021 2020 Net Income - Omnicom Group Inc. $ 287.8 $ 258.1 Weighted Average Shares: Basic 215.6 216.6 Dilutive stock options and restricted shares 1.2 0.9 Diluted 216.8 217.5 Anti-dilutive stock options and restricted shares 0.7 0.9 Net Income per Share - Omnicom Group Inc.: Basic $ 1.33 $ 1.19 Diluted $ 1.33 $ 1.19 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and intangible assets were (in millions): March 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Goodwill $ 10,068.3 $ (526.8) $ 9,541.5 $ 10,141.6 $ (531.9) $ 9,609.7 Intangible assets: Purchased and internally developed software $ 378.8 $ (309.4) $ 69.4 $ 377.6 $ (307.0) $ 70.6 Customer related and other 726.2 (514.8) 211.4 738.1 (510.2) 227.9 $ 1,105.0 $ (824.2) $ 280.8 $ 1,115.7 $ (817.2) $ 298.5 |
Changes in Goodwill | Changes in goodwill were (in millions): Three Months Ended March 31, 2021 2020 January 1 $ 9,609.7 $ 9,440.5 Acquisitions — 1.7 Dispositions — (0.1) Foreign currency translation (68.2) (243.5) March 31 $ 9,541.5 $ 9,198.6 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt [Abstract] | |
Long-Term Debt | Long-term debt was (in millions): March 31, 2021 December 31, 2020 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 €500 Million 0.80% Senior Notes due 2027 585.9 611.5 2.45% Senior Notes due 2030 600.0 600.0 4.20% Senior Notes due 2030 600.0 600.0 €500 Million 1.40% Senior Notes due 2031 585.9 611.5 5,771.8 5,823.0 Unamortized premium (discount), net (5.2) (5.1) Unamortized debt issuance costs (25.6) (27.0) Unamortized deferred gain from settlement of interest rate swaps 13.4 16.4 Long-term debt $ 5,754.4 $ 5,807.3 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue and Long-Lived Assets and Goodwill by Geographic Region | Revenue and long-lived assets and goodwill by geographic region were (in millions): Americas EMEA Asia-Pacific March 31, 2021 Revenue $ 2,035.7 $ 991.2 $ 400.0 Long-lived assets and goodwill 7,562.7 3,074.7 644.8 March 31, 2020 Revenue $ 2,068.7 $ 978.9 $ 359.3 Long-lived assets and goodwill 7,685.0 2,893.6 607.6 |
Pension and Other Postemploym_2
Pension and Other Postemployment Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Pension Plans [Member] | |
Components of Net Periodic Benefit Expense | Defined Benefit Pension Plans The components of net periodic benefit expense were (in millions): Three Months Ended March 31, 2021 2020 Service cost $ 1.4 $ 2.0 Interest cost 0.8 1.3 Expected return on plan assets (0.2) (0.3) Amortization of prior service cost 0.2 0.2 Amortization of actuarial losses 2.3 1.4 $ 4.5 $ 4.6 |
Postemployment Arrangements [Member] | |
Components of Net Periodic Benefit Expense | Postemployment Arrangements The components of net periodic benefit expense were (in millions): Three Months Ended March 31, 2021 2020 Service cost $ 1.2 $ 1.2 Interest cost 0.5 0.9 Amortization of prior service cost 1.0 1.1 Amortization of actuarial losses 1.0 0.5 $ 3.7 $ 3.7 |
COVID-19 Repositioning Costs (T
COVID-19 Repositioning Costs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
COVID-19 Repositioning Costs [Abstract] | |
COVID-19 Repositioning Liabilities | At March 31, 2021 the remaining liability for the COVID-19 repositioning costs was (in millions): January 1, 2021 $ 83.8 Payments (15.7) March 31, 2021 $ 68.1 |
Supplemental Cash Flow Data (Ta
Supplemental Cash Flow Data (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Data [Abstract] | |
Change in Operating Capital | The change in operating capital was (in millions): Three Months Ended March 31, 2021 2020 (Increase) decrease in accounts receivable $ 1,095.5 $ 876.6 (Increase) decrease in work in process and other current assets (55.3) (115.0) Increase (decrease) in accounts payable (1,953.8) (2,084.9) Increase (decrease) in customer advances, taxes payable and other current liabilities 63.0 (14.1) Change in other assets and liabilities, net 7.1 (11.8) Increase (decrease) $ (843.5) $ (1,349.2) Income taxes paid $ 42.7 $ 50.5 Interest paid $ 5.3 $ 31.2 |
Supplemental Non-Cash Information Related to Leases | Supplemental non-cash information related to leases was (in millions): Three Months Ended March 31, 2021 2020 Net increase in lease liability: Operating leases $ 38.7 $ 72.0 Finance leases $ 11.7 $ 8.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss), net of income taxes were (in millions): Cash Defined Benefit Pension Plans and Postemployment Arrangements Foreign Total Three Months Ended March 31, 2021 January 1 $ (20.1) $ (123.2) $ (1,070.5) $ (1,213.8) Other comprehensive income (loss) before reclassifications — — (36.1) (36.1) Reclassification from accumulated other comprehensive income (loss) 1.0 2.7 — 3.7 March 31 $ (19.1) $ (120.5) $ (1,106.6) $ (1,246.2) Three Months Ended March 31, 2020 January 1 $ (24.0) $ (112.1) $ (1,061.5) $ (1,197.6) Other comprehensive income (loss) before reclassifications — — (333.8) (333.8) Reclassification from accumulated other comprehensive income (loss) 0.9 2.2 — 3.1 March 31 $ (23.1) $ (109.9) $ (1,395.3) $ (1,528.3) |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis were (in millions): March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 4,897.3 $ 4,897.3 Marketable equity investments 1.4 1.4 Foreign currency derivatives $ 0.5 0.5 Liabilities: Foreign currency derivatives $ 0.5 $ 0.5 Contingent purchase price obligations $ 67.7 67.7 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 5,600.5 $ 5,600.5 Marketable equity investments 1.6 1.6 Foreign currency derivative instruments $ 0.6 0.6 Liabilities: Foreign currency derivatives 0.3 0.3 Contingent purchase price obligations $ 71.9 71.9 |
Changes in Contingent Purchase Price Obligations | Changes in contingent purchase price obligations were (in millions): Three Months Ended March 31, 2021 2020 January 1 $ 71.9 $ 107.7 Acquisitions 1.3 8.1 Revaluation and interest 0.4 0.6 Payments (5.4) — Foreign currency translation (0.5) (2.8) March 31 $ 67.7 $ 113.6 |
Carrying Amount and Fair Value of Financial Assets and Liabilities | The carrying amount and fair value of our financial assets and liabilities were (in millions): March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Assets: Cash and cash equivalents $ 4,897.3 $ 4,897.3 $ 5,600.5 $ 5,600.5 Marketable equity securities 1.4 1.4 1.6 1.6 Non-marketable equity securities 6.9 6.9 8.9 8.9 Foreign currency derivatives 0.5 0.5 0.6 0.6 Liabilities: Short-term debt $ 5.9 $ 5.9 $ 3.9 $ 3.9 Foreign currency derivatives 0.5 0.5 0.3 0.3 Contingent purchase price obligations 67.7 67.7 71.9 71.9 Long-term debt, including current portion 5,754.4 6,143.1 5,807.3 6,380.6 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 3,426.9 | $ 3,406.9 | |
Contract assets and unbilled fees and costs | 626 | 783.7 | $ 501.1 |
Media and production costs | 512.7 | 529.5 | 600.1 |
Work in process: | 1,138.7 | 1,313.2 | 1,101.2 |
Customer advances | 1,278 | 1,075.7 | $ 1,361.3 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,972.5 | 1,997.3 | |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,868.1 | 1,894.2 | |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 63.2 | 71.4 | |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 941 | 923.4 | |
Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 50.2 | 55.5 | |
Asia-Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 400 | 359.3 | |
Advertising | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,003.7 | 1,933.3 | |
CRM Precision Marketing | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 269.5 | 232 | |
CRM Commerce and Brand Consulting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 214.5 | 220.9 | |
CRM Experiential | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 88.4 | 131.3 | |
CRM Execution & Support | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 246.6 | 273.7 | |
Public Relations | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 317.5 | 333.7 | |
Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 286.7 | $ 282 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Income per Share [Abstract] | ||
Net Income - Omnicom Group Inc. | $ 287.8 | $ 258.1 |
Weighted Average Shares: | ||
Basic | 215.6 | 216.6 |
Dilutive stock options and restricted shares | 1.2 | 0.9 |
Diluted | 216.8 | 217.5 |
Anti-dilutive stock options and restricted shares | 0.7 | 0.9 |
Net Income per Share - Omnicom Group Inc.: | ||
Basic | $ 1.33 | $ 1.19 |
Diluted | $ 1.33 | $ 1.19 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, Gross Carrying Value | $ 10,068.3 | $ 10,141.6 | ||
Goodwill, Accumulated Amortization | (526.8) | (531.9) | ||
Goodwill, Net Carrying Value | $ 9,541.5 | $ 9,198.6 | 9,541.5 | 9,609.7 |
Intangible assets: | ||||
Intangible assets:, Gross Carrying Value | 1,105 | 1,115.7 | ||
Intangible assets:, Accumulated Amortization | (824.2) | (817.2) | ||
Intangible assets:, Net Carrying Value | 280.8 | 298.5 | ||
Changes in Goodwill | ||||
Goodwill, January 1 | 9,609.7 | 9,440.5 | ||
Goodwill, Acquisitions | 0 | 1.7 | ||
Goodwill, Dispositions | 0 | (0.1) | ||
Goodwill, Foreign currency translation | (68.2) | (243.5) | ||
Goodwill, March 31 | $ 9,541.5 | $ 9,198.6 | ||
Purchased and internally developed software | ||||
Intangible assets: | ||||
Intangible assets:, Gross Carrying Value | 378.8 | 377.6 | ||
Intangible assets:, Accumulated Amortization | (309.4) | (307) | ||
Intangible assets:, Net Carrying Value | 69.4 | 70.6 | ||
Customer related and other | ||||
Intangible assets: | ||||
Intangible assets:, Gross Carrying Value | 726.2 | 738.1 | ||
Intangible assets:, Accumulated Amortization | (514.8) | (510.2) | ||
Intangible assets:, Net Carrying Value | $ 211.4 | $ 227.9 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Short-Term Borrowings [Abstract] | ||
Short-term debt | $ 5.9 | $ 3.9 |
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | 5,771.8 | 5,823 |
Unamortized premium (discount), net | (5.2) | (5.1) |
Unamortized debt issuance costs | (25.6) | (27) |
Unamortized deferred gain from settlement of interest rate swaps | 13.4 | 16.4 |
Long-term debt | 5,754.4 | 5,807.3 |
Credit Facility [Member] | ||
Credit Facilities [Abstract] | ||
Credit Facilities, maximum borrowing capacity | $ 2,500 | |
Credit Facilities, expiration date | Feb. 14, 2025 | |
Credit Facilities, amount outstanding | $ 0 | |
Credit Facilities, covenant terms | The Credit Facility contains and,prior to its expiration, the 364 Day Credit Facility contained, a financial covenant that requires us to maintain a Leverage Ratio of consolidated indebtedness to consolidated EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash charges) of no more than 3.5 times for the most recently ended 12-month period. We amended the Credit Facility and the 364 Day Credit Facility in October 2020 to increase the maximum Leverage Ratio to 4.0 times through December 31, 2021 for the Credit Agreement and to 4.0 times through the maturity of the 364 Day Credit Facility. | |
Credit Facilities, covenant compliance | At March 31, 2021, we were in compliance with these covenants as our Leverage Ratio was 2.8 times. | |
Commercial Paper [Member] | ||
Credit Facilities [Abstract] | ||
Credit Facilities, current borrowing capacity | $ 2,000 | |
Credit Facilities, amount outstanding | 0 | |
364 Day Credit Facility [Member] | ||
Credit Facilities [Abstract] | ||
Credit Facilities, maximum borrowing capacity | $ 400 | |
Credit Facilities, expiration date | Apr. 2, 2021 | |
Credit Facilities, amount outstanding | $ 0 | |
Credit Facilities, covenant terms | The Credit Facility contains and,prior to its expiration, the 364 Day Credit Facility contained, a financial covenant that requires us to maintain a Leverage Ratio of consolidated indebtedness to consolidated EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash charges) of no more than 3.5 times for the most recently ended 12-month period. We amended the Credit Facility and the 364 Day Credit Facility in October 2020 to increase the maximum Leverage Ratio to 4.0 times through December 31, 2021 for the Credit Agreement and to 4.0 times through the maturity of the 364 Day Credit Facility. | |
Credit Facilities, covenant compliance | At March 31, 2021, we were in compliance with these covenants as our Leverage Ratio was 2.8 times. | |
Uncommitted credit lines [Member] | ||
Credit Facilities [Abstract] | ||
Credit Facilities, current borrowing capacity | $ 1,000 | |
Credit Facilities, amount outstanding | 0 | |
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% | |
3.65% Senior Notes due 2024 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 750 | 750 |
Long-term debt, interest rate | 3.65% | |
3.60% Senior Notes due 2026 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 1,400 | 1,400 |
Long-term debt, interest rate | 3.60% | |
€500 Million 0.80% Senior Notes due 2027 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 585.9 | 611.5 |
Long-term debt, interest rate | 0.80% | |
2.45% Senior Notes due 2030 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 600 | 600 |
Long-term debt, interest rate | 2.45% | |
4.20% Senior Notes due 2030 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 600 | 600 |
Long-term debt, interest rate | 4.20% | |
€500 Million 1.40% Senior Notes due 2031 | ||
Long-Term Debt [Abstract] | ||
Long-term debt, carrying amount | $ 585.9 | $ 611.5 |
Long-term debt, interest rate | 1.40% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||
Revenue | $ 3,426.9 | $ 3,406.9 |
Americas | ||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||
Revenue | 2,035.7 | 2,068.7 |
Long-lived assets and goodwill | 7,562.7 | 7,685 |
EMEA | ||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||
Revenue | 991.2 | 978.9 |
Long-lived assets and goodwill | 3,074.7 | 2,893.6 |
Asia-Pacific | ||
Revenue and Long-Lived Assets and Goodwill by Geographic Region | ||
Revenue | 400 | 359.3 |
Long-lived assets and goodwill | $ 644.8 | $ 607.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes [Abstract] | ||
Effective tax rate | 26.80% | 26.00% |
Unrecognized tax benefits | $ 181.2 | |
Unrecognized tax benefits that would impact effective tax rate | $ 172.2 |
Pension and Other Postemploym_3
Pension and Other Postemployment Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Pension Plans [Member] | ||
Components of Net Periodic Benefit Expense | ||
Service cost | $ 1.4 | $ 2 |
Interest cost | 0.8 | 1.3 |
Expected return on plan assets | (0.2) | (0.3) |
Amortization of prior service cost | 0.2 | 0.2 |
Amortization of actuarial losses | 2.3 | 1.4 |
Net periodic benefit expense | 4.5 | 4.6 |
Employer contributions | 0.2 | 0.1 |
Postemployment Arrangements [Member] | ||
Components of Net Periodic Benefit Expense | ||
Service cost | 1.2 | 1.2 |
Interest cost | 0.5 | 0.9 |
Amortization of prior service cost | 1 | 1.1 |
Amortization of actuarial losses | 1 | 0.5 |
Net periodic benefit expense | $ 3.7 | $ 3.7 |
COVID-19 Repositioning Costs (D
COVID-19 Repositioning Costs (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Repositioning Liabilities [Roll Forward] | |
Repositioning Liabilities, January 1, 2021 | $ 83.8 |
Repositioning Liabilities, Payments | (15.7) |
Repositioning Liabilities, March 31, 2021 | $ 68.1 |
Supplemental Cash Flow Data (De
Supplemental Cash Flow Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Change in Operating Capital [Abstract] | ||
(Increase) decrease in accounts receivable | $ 1,095.5 | $ 876.6 |
(Increase) decrease in work in process and other current assets | (55.3) | (115) |
Increase (decrease) in accounts payable | (1,953.8) | (2,084.9) |
Increase (decrease) in customer advances, taxes payable and other current liabilities | 63 | (14.1) |
Change in other assets and liabilities, net | 7.1 | (11.8) |
Use of operating capital | (843.5) | (1,349.2) |
Income taxes paid | 42.7 | 50.5 |
Interest paid | 5.3 | 31.2 |
Operating leases, Net increase in lease liability | 38.7 | 72 |
Finance leases, Net increase in lease liability | $ 11.7 | $ 8.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | $ (1,213.8) | $ (1,197.6) |
Other comprehensive income (loss) before reclassifications | (36.1) | (333.8) |
Reclassification from accumulated other comprehensive income (loss) | 3.7 | 3.1 |
March 31 | (1,246.2) | (1,528.3) |
Cash Flow Hedge | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (20.1) | (24) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss) | 1 | 0.9 |
March 31 | (19.1) | (23.1) |
Defined Benefit Pension Plans and Postemployment Arrangements | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (123.2) | (112.1) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassification from accumulated other comprehensive income (loss) | 2.7 | 2.2 |
March 31 | (120.5) | (109.9) |
Foreign Currency Translation | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
January 1 | (1,070.5) | (1,061.5) |
Other comprehensive income (loss) before reclassifications | (36.1) | (333.8) |
Reclassification from accumulated other comprehensive income (loss) | 0 | 0 |
March 31 | $ (1,106.6) | $ (1,395.3) |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | $ 4,897.3 | $ 5,600.5 | |
Marketable equity securities | 1.4 | 1.6 | |
Non-marketable equity securities | 6.9 | 8.9 | |
Foreign currency derivatives | 0.5 | 0.6 | |
Liabilities: | |||
Short-term debt | 5.9 | 3.9 | |
Foreign currency derivatives | 0.5 | 0.3 | |
Contingent purchase price obligations | 67.7 | 71.9 | |
Long-term debt, including current portion | 5,754.4 | 5,807.3 | |
Fair Value | |||
Assets: | |||
Cash and cash equivalents | 4,897.3 | 5,600.5 | |
Marketable equity securities | 1.4 | 1.6 | |
Non-marketable equity securities | 6.9 | 8.9 | |
Foreign currency derivatives | 0.5 | 0.6 | |
Liabilities: | |||
Short-term debt | 5.9 | 3.9 | |
Foreign currency derivatives | 0.5 | 0.3 | |
Contingent purchase price obligations | 67.7 | 71.9 | |
Long-term debt, including current portion | 6,143.1 | 6,380.6 | |
Contingent purchase price obligations | |||
Changes in Contingent Purchase Price Obligations [Roll Forward] | |||
January 1 | 71.9 | $ 107.7 | |
Acquisitions | 1.3 | 8.1 | |
Revaluation and interest | 0.4 | 0.6 | |
Payments | (5.4) | 0 | |
Foreign currency translation | (0.5) | (2.8) | |
March 31 | 67.7 | $ 113.6 | |
Fair Value, Recurring [Member] | |||
Assets: | |||
Cash and cash equivalents | 4,897.3 | 5,600.5 | |
Marketable equity securities | 1.4 | 1.6 | |
Foreign currency derivatives | 0.5 | 0.6 | |
Liabilities: | |||
Foreign currency derivatives | 0.5 | 0.3 | |
Contingent purchase price obligations | 67.7 | 71.9 | |
Fair Value, Recurring [Member] | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 4,897.3 | 5,600.5 | |
Marketable equity securities | 1.4 | 1.6 | |
Fair Value, Recurring [Member] | Level 2 | |||
Assets: | |||
Foreign currency derivatives | 0.5 | 0.6 | |
Liabilities: | |||
Foreign currency derivatives | 0.5 | 0.3 | |
Fair Value, Recurring [Member] | Level 3 | |||
Liabilities: | |||
Contingent purchase price obligations | $ 67.7 | $ 71.9 |