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New York
|
13-1514814
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
|
|
437 Madison Avenue, New York, New York
|
10022
|
(Address of principal executive offices)
|
(Zip Code)
|
Yes
|
þ
|
|
No
|
¨
|
|
Yes
|
þ
|
|
No
|
¨
|
|
Large accelerated filer
|
þ
|
|
Accelerated filer
|
¨
|
|
|
|
|
|
Non-accelerated filer
|
¨
|
|
Smaller reporting company
|
¨
|
Yes
|
¨
|
|
No
|
þ
|
|
|
|
|
Page
|
PART I.
|
|
FINANCIAL INFORMATION
|
|
Item 1.
|
|
|
|
|
|
Condensed Consolidated Balance Sheets - September 30, 2012 and December 31, 2011
|
|
|
|
Condensed Consolidated Statements of Income - Three and Nine Months Ended September 30, 2012 and 2011
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2012 and 2011
|
|
|
|
Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2012 and 2011
|
|
|
|
||
Item 2.
|
|
||
Item 3.
|
|
||
Item 4.
|
|
||
|
|
|
|
PART II.
|
|
OTHER INFORMATION
|
|
Item 1.
|
|
||
Item 1A.
|
|
||
Item 2.
|
|
||
Item 6.
|
|
||
|
|
|
|
SIGNATURES
|
|
|
|
September 30, 2012
|
|
December 31, 2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,956.3
|
|
|
$
|
1,781.2
|
|
Short-term investments, at cost
|
16.5
|
|
|
23.8
|
|
||
Accounts receivable, net of allowance for doubtful accounts
|
|
|
|
||||
of $37.8 and $40.6
|
6,260.2
|
|
|
6,632.0
|
|
||
Work in process
|
700.2
|
|
|
640.3
|
|
||
Other current assets
|
1,463.9
|
|
|
1,344.2
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Total Current Assets
|
10,397.1
|
|
|
10,421.5
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Property, Plant and Equipment
|
|
|
|
||||
at cost, less accumulated depreciation of $1,235.4 and $1,186.1
|
700.0
|
|
|
682.9
|
|
||
Investments In Affiliates
|
192.5
|
|
|
184.2
|
|
||
Goodwill
|
8,728.6
|
|
|
8,456.3
|
|
||
Intangible Assets, net of accumulated amortization of $477.4 and $416.9
|
446.8
|
|
|
468.4
|
|
||
Other Assets
|
333.0
|
|
|
292.1
|
|
||
|
|
|
|
||||
|
|
|
|
||||
TOTAL ASSETS
|
$
|
20,798.0
|
|
|
$
|
20,505.4
|
|
|
|
|
|
||||
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
7,430.2
|
|
|
$
|
8,060.0
|
|
Customer advances
|
1,191.5
|
|
|
1,225.3
|
|
||
Current portion of debt
|
0.4
|
|
|
0.7
|
|
||
Short-term borrowings
|
11.1
|
|
|
9.5
|
|
||
Taxes payable
|
128.5
|
|
|
237.0
|
|
||
Other current liabilities
|
1,940.5
|
|
|
2,138.5
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Total Current Liabilities
|
10,702.2
|
|
|
11,671.0
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Long-Term Notes Payable
|
3,791.2
|
|
|
2,523.5
|
|
||
Convertible Debt
|
659.4
|
|
|
659.4
|
|
||
Long-Term Liabilities
|
653.4
|
|
|
602.0
|
|
||
Long-Term Deferred Tax Liabilities
|
948.4
|
|
|
867.6
|
|
||
Commitments and Contingent Liabilities (See Note 11)
|
|
|
|
|
|||
Temporary Equity - Redeemable Noncontrolling Interests
|
196.7
|
|
|
202.1
|
|
||
Equity:
|
|
|
|
||||
Shareholders’ Equity:
|
|
|
|
||||
Preferred stock
|
—
|
|
|
—
|
|
||
Common stock
|
59.6
|
|
|
59.6
|
|
||
Additional paid-in capital
|
919.0
|
|
|
1,043.5
|
|
||
Retained earnings
|
8,168.1
|
|
|
7,724.1
|
|
||
Accumulated other comprehensive income (loss)
|
(120.7
|
)
|
|
(191.7
|
)
|
||
Treasury stock, at cost
|
(5,667.4
|
)
|
|
(5,131.2
|
)
|
||
|
|
|
|
||||
|
|
|
|
||||
Total Shareholders’ Equity
|
3,358.6
|
|
|
3,504.3
|
|
||
Noncontrolling interests
|
488.1
|
|
|
475.5
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Total Equity
|
3,846.7
|
|
|
3,979.8
|
|
||
|
|
|
|
||||
|
|
|
|
||||
TOTAL LIABILITIES AND EQUITY
|
$
|
20,798.0
|
|
|
$
|
20,505.4
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
3,406.6
|
|
|
$
|
3,380.9
|
|
|
$
|
10,274.8
|
|
|
$
|
10,019.6
|
|
Operating Expenses
|
3,019.3
|
|
|
3,007.5
|
|
|
9,018.6
|
|
|
8,835.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Operating Income
|
387.3
|
|
|
373.4
|
|
|
1,256.2
|
|
|
1,183.7
|
|
||||
Interest Expense
|
47.8
|
|
|
39.8
|
|
|
130.3
|
|
|
118.6
|
|
||||
Interest Income
|
7.5
|
|
|
7.9
|
|
|
26.0
|
|
|
26.8
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Income Before Income Taxes and Income From
|
|
|
|
|
|
|
|
||||||||
Equity Method Investments
|
347.0
|
|
|
341.5
|
|
|
1,151.9
|
|
|
1,091.9
|
|
||||
Income Tax Expense
|
118.7
|
|
|
117.1
|
|
|
389.9
|
|
|
349.0
|
|
||||
Income From Equity Method Investments
|
5.3
|
|
|
4.5
|
|
|
11.9
|
|
|
10.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Income
|
233.6
|
|
|
228.9
|
|
|
773.9
|
|
|
753.2
|
|
||||
Less: Net Income Attributed To Noncontrolling Interests
|
29.7
|
|
|
25.2
|
|
|
82.7
|
|
|
72.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Income - Omnicom Group Inc.
|
$
|
203.9
|
|
|
$
|
203.7
|
|
|
$
|
691.2
|
|
|
$
|
680.7
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Income Per Share - Omnicom Group Inc.:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.75
|
|
|
$
|
0.73
|
|
|
$
|
2.51
|
|
|
$
|
2.41
|
|
Diluted
|
$
|
0.74
|
|
|
$
|
0.72
|
|
|
$
|
2.49
|
|
|
$
|
2.37
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Dividends Declared Per Common Share
|
$
|
0.30
|
|
|
$
|
0.25
|
|
|
$
|
0.90
|
|
|
$
|
0.75
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
233.6
|
|
|
$
|
228.9
|
|
|
$
|
773.9
|
|
|
$
|
753.2
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Foreign currency transactions and translation adjustments, net of income taxes of $53.2 and ($136.7) for the three months and $36.9 and ($38.5) for the nine months ended September 30, 2012 and 2011, respectively
|
103.2
|
|
|
(265.1
|
)
|
|
71.3
|
|
|
(74.4
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Defined benefit plans adjustment, net of income taxes of $0.9 and $0.6 for the three months and $2.5 and $1.8 for the nine months ended September 30, 2012 and 2011, respectively
|
1.3
|
|
|
0.9
|
|
|
3.7
|
|
|
2.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Other Comprehensive Income
|
104.5
|
|
|
(264.2
|
)
|
|
75.0
|
|
|
(71.7
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive Income
|
338.1
|
|
|
(35.3
|
)
|
|
848.9
|
|
|
681.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Less: Comprehensive Income attributed to
noncontrolling interests
|
38.7
|
|
|
(0.5
|
)
|
|
86.7
|
|
|
59.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive Income - Omnicom Group Inc.
|
$
|
299.4
|
|
|
$
|
(34.8
|
)
|
|
$
|
762.2
|
|
|
$
|
622.4
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
|
|
||||
|
|
|
|
||||
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income
|
$
|
773.9
|
|
|
$
|
753.2
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
135.4
|
|
|
135.9
|
|
||
Amortization of intangible assets
|
75.2
|
|
|
67.7
|
|
||
Amortization of deferred gain from termination of interest rate swaps
|
(5.5
|
)
|
|
(0.9
|
)
|
||
Income from equity method investments, net of dividends received
|
(1.6
|
)
|
|
3.8
|
|
||
Remeasurement gain, equity interest in Clemenger Group
|
—
|
|
|
(123.4
|
)
|
||
Provision for doubtful accounts
|
5.3
|
|
|
4.0
|
|
||
Share-based compensation
|
63.1
|
|
|
52.7
|
|
||
Excess tax benefit from share-based compensation
|
(79.8
|
)
|
|
(27.4
|
)
|
||
Proceeds from discontinuation of interest rate swaps
|
—
|
|
|
38.8
|
|
||
Change in operating capital
|
(665.9
|
)
|
|
(903.9
|
)
|
||
|
|
|
|
||||
|
|
|
|
||||
Net Cash Provided By Operating Activities
|
300.1
|
|
|
0.5
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Cash Flows from Investing Activities:
|
|
|
|
||||
Payments to acquire property, plant and equipment
|
(158.7
|
)
|
|
(114.2
|
)
|
||
Payments to acquire businesses and interests in affiliates, net of cash acquired
|
(117.3
|
)
|
|
(314.8
|
)
|
||
Payments to acquire investments
|
—
|
|
|
(11.6
|
)
|
||
Proceeds from sales of investments
|
8.4
|
|
|
27.9
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Net Cash Used In Investing Activities
|
(267.6
|
)
|
|
(412.7
|
)
|
||
|
|
|
|
||||
|
|
|
|
||||
Cash Flows from Financing Activities:
|
|
|
|
||||
Proceeds from (repayments of) short-term debt
|
1.4
|
|
|
(35.7
|
)
|
||
Proceeds from borrowings
|
1,273.2
|
|
|
0.3
|
|
||
Repayments of convertible debt
|
—
|
|
|
(0.1
|
)
|
||
Payments of dividends
|
(235.4
|
)
|
|
(199.0
|
)
|
||
Payments for repurchase of common stock
|
(1,001.6
|
)
|
|
(717.9
|
)
|
||
Proceeds from stock plans
|
207.6
|
|
|
104.7
|
|
||
Payments for acquisition of additional noncontrolling interests
|
(19.2
|
)
|
|
(28.0
|
)
|
||
Payments of dividends to noncontrolling interest shareholders
|
(78.9
|
)
|
|
(69.8
|
)
|
||
Payments of contingent purchase price obligations
|
(30.6
|
)
|
|
(8.9
|
)
|
||
Excess tax benefit on share-based compensation
|
79.8
|
|
|
27.4
|
|
||
Other, net
|
(86.9
|
)
|
|
(17.7
|
)
|
||
|
|
|
|
||||
|
|
|
|
||||
Net Cash Provided By (Used In) Financing Activities
|
109.4
|
|
|
(944.7
|
)
|
||
|
|
|
|
||||
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
33.2
|
|
|
(31.2
|
)
|
||
|
|
|
|
||||
|
|
|
|
||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
175.1
|
|
|
(1,388.1
|
)
|
||
|
|
|
|
||||
Cash and Cash Equivalents at the Beginning of the Period
|
1,781.2
|
|
|
2,288.7
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Cash and Cash Equivalents at the End of the Period
|
$
|
1,956.3
|
|
|
$
|
900.6
|
|
|
|
|
|
1.
|
Presentation of Financial Statements
|
2.
|
New Accounting Standards
|
3.
|
Net Income per Common Share
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Income Available for Common Shares:
|
|
|
|
|
|
|
|
||||||||
Net income - Omnicom Group Inc.
|
$
|
203.9
|
|
|
$
|
203.7
|
|
|
$
|
691.2
|
|
|
$
|
680.7
|
|
Net income allocated to participating securities
|
(4.5
|
)
|
|
(2.3
|
)
|
|
(15.4
|
)
|
|
(7.3
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income available for common shares
|
$
|
199.4
|
|
|
$
|
201.4
|
|
|
$
|
675.8
|
|
|
$
|
673.4
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares:
|
|
|
|
|
|
|
|
||||||||
Basic
|
266.6
|
|
|
277.1
|
|
|
269.6
|
|
|
279.8
|
|
||||
Dilutive stock options and restricted shares
|
1.9
|
|
|
4.3
|
|
|
1.9
|
|
|
4.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted
|
268.5
|
|
|
281.4
|
|
|
271.5
|
|
|
284.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive stock options and restricted shares
|
0.2
|
|
|
2.1
|
|
|
0.2
|
|
|
1.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Income per Common Share - Omnicom Group Inc.:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.75
|
|
|
$
|
0.73
|
|
|
$
|
2.51
|
|
|
$
|
2.41
|
|
Diluted
|
$
|
0.74
|
|
|
$
|
0.72
|
|
|
$
|
2.49
|
|
|
$
|
2.37
|
|
4.
|
Debt
|
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Credit Agreement
|
$
|
2,500.0
|
|
|
$
|
2,500.0
|
|
Uncommitted lines of credit
|
878.2
|
|
|
758.3
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Available and unused lines of credit
|
$
|
3,378.2
|
|
|
$
|
3,258.3
|
|
|
|
|
|
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
5.90% Senior Notes due April 15, 2016
|
$
|
1,000.0
|
|
|
$
|
1,000.0
|
|
6.25% Senior Notes due July 15, 2019
|
500.0
|
|
|
500.0
|
|
||
4.45% Senior Notes due August 15, 2020
|
1,000.0
|
|
|
1,000.0
|
|
||
3.625% Senior Notes due May 1, 2022
|
1,250.0
|
|
|
—
|
|
||
Other notes and loans
|
0.4
|
|
|
1.3
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
3,750.4
|
|
|
2,501.3
|
|
||
Unamortized premium (discount) on Senior Notes, net
|
16.2
|
|
|
(7.6
|
)
|
||
Deferred gain from termination of interest rate swaps on Senior Notes due 2016
|
25.0
|
|
|
30.5
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
3,791.6
|
|
|
2,524.2
|
|
||
Less current portion
|
0.4
|
|
|
0.7
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Long-term notes payable
|
$
|
3,791.2
|
|
|
$
|
2,523.5
|
|
|
|
|
|
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Convertible Notes - due July 31, 2032
|
$
|
252.7
|
|
|
$
|
252.7
|
|
Convertible Notes - due June 15, 2033
|
0.1
|
|
|
0.1
|
|
||
Convertible Notes - due July 1, 2038
|
406.6
|
|
|
406.6
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
659.4
|
|
|
659.4
|
|
||
Less current portion
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Convertible debt
|
$
|
659.4
|
|
|
$
|
659.4
|
|
|
|
|
|
5.
|
Intangible Assets
|
|
2012
|
|
2011
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gross
Carrying
Value
|
|
Accumulated
Amortization
|
|
Net
Carrying
Value
|
|
Gross
Carrying
Value
|
|
Accumulated
Amortization
|
|
Net
Carrying
Value
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Intangible assets subject to
impairment tests:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill
|
$
|
9,304.0
|
|
|
$
|
575.4
|
|
|
$
|
8,728.6
|
|
|
$
|
9,026.6
|
|
|
$
|
570.3
|
|
|
$
|
8,456.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other identifiable intangible
assets subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchased and internally developed software
|
$
|
280.3
|
|
|
$
|
217.5
|
|
|
$
|
62.8
|
|
|
$
|
270.0
|
|
|
$
|
210.3
|
|
|
$
|
59.7
|
|
Customer related and other
|
643.9
|
|
|
259.9
|
|
|
384.0
|
|
|
615.3
|
|
|
206.6
|
|
|
408.7
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
$
|
924.2
|
|
|
$
|
477.4
|
|
|
$
|
446.8
|
|
|
$
|
885.3
|
|
|
$
|
416.9
|
|
|
$
|
468.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Balance January 1
|
$
|
8,456.3
|
|
|
$
|
7,809.1
|
|
Acquisitions
|
225.6
|
|
|
640.8
|
|
||
Dispositions
|
(2.5
|
)
|
|
(10.0
|
)
|
||
Foreign currency translation
|
49.2
|
|
|
(42.4
|
)
|
||
|
|
|
|
||||
|
|
|
|
||||
Balance September 30
|
$
|
8,728.6
|
|
|
$
|
8,397.5
|
|
|
|
|
|
6.
|
Segment Reporting
|
|
|
Americas
|
|
EMEA
|
|
Asia /
Australia
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
2012
|
|
|
|
|
|
|
||||||
|
Revenue - Three months ended
|
$
|
2,003.1
|
|
|
$
|
1,007.2
|
|
|
$
|
396.3
|
|
|
Revenue - Nine months ended
|
6,073.8
|
|
|
3,072.8
|
|
|
1,128.2
|
|
|||
|
Long-lived assets and goodwill
|
6,088.5
|
|
|
2,738.1
|
|
|
602.0
|
|
|||
2011
|
|
|
|
|
|
|
||||||
|
Revenue - Three months ended
|
$
|
1,934.1
|
|
|
$
|
1,092.8
|
|
|
$
|
354.0
|
|
|
Revenue - Nine months ended
|
5,815.9
|
|
|
3,243.6
|
|
|
960.1
|
|
|||
|
Long-lived assets and goodwill
|
5,953.4
|
|
|
2,625.5
|
|
|
450.7
|
|
7.
|
Pension and Other Postemployment Benefits
|
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Service cost
|
$
|
4.6
|
|
|
$
|
4.1
|
|
Interest cost
|
4.6
|
|
|
3.8
|
|
||
Expected return on plan assets
|
(1.9
|
)
|
|
(1.8
|
)
|
||
Amortization of prior service cost
|
2.4
|
|
|
2.4
|
|
||
Amortization of actuarial (gains) losses
|
1.1
|
|
|
0.4
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
$
|
10.8
|
|
|
$
|
8.9
|
|
|
|
|
|
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Service cost
|
$
|
3.0
|
|
|
$
|
2.9
|
|
Interest cost
|
3.5
|
|
|
3.5
|
|
||
Amortization of prior service cost
|
1.5
|
|
|
1.6
|
|
||
Amortization of actuarial (gains) losses
|
0.6
|
|
|
0.5
|
|
||
|
|
|
|
|
|
||
|
|
|
|
||||
|
$
|
8.6
|
|
|
$
|
8.5
|
|
|
|
|
|
8.
|
Operating Expenses
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Salary and service costs
|
$
|
2,515.8
|
|
|
$
|
2,504.7
|
|
|
$
|
7,491.5
|
|
|
$
|
7,395.8
|
|
Office and general expenses
|
503.5
|
|
|
502.8
|
|
|
1,527.1
|
|
|
1,440.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Operating expenses
|
$
|
3,019.3
|
|
|
$
|
3,007.5
|
|
|
$
|
9,018.6
|
|
|
$
|
8,835.9
|
|
|
|
|
|
|
|
|
|
9.
|
Supplemental Cash Flow Data
|
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Decrease in accounts receivable
|
$
|
438.1
|
|
|
$
|
85.1
|
|
Increase in work in process and other current assets
|
(205.6
|
)
|
|
(208.2
|
)
|
||
Decrease in accounts payable
|
(697.4
|
)
|
|
(780.7
|
)
|
||
Decrease in customer advances and other current liabilities
|
(314.5
|
)
|
|
(266.4
|
)
|
||
Change in other assets and liabilities, net
|
113.5
|
|
|
266.3
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Change in operating capital
|
$
|
(665.9
|
)
|
|
$
|
(903.9
|
)
|
|
|
|
|
||||
|
|
|
|
||||
Income taxes paid
|
$
|
287.5
|
|
|
$
|
246.9
|
|
|
|
|
|
||||
Interest paid
|
$
|
114.8
|
|
|
$
|
101.5
|
|
10.
|
Income Taxes
|
11.
|
Commitments and Contingent Liabilities
|
12.
|
Fair Value
|
September 30, 2012
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Balance Sheet Classification
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
1,956.3
|
|
|
|
|
|
|
$
|
1,956.3
|
|
|
|
||
Short-term investments
|
16.5
|
|
|
|
|
|
|
16.5
|
|
|
|
||||
Forward foreign exchange contracts
|
|
|
$
|
0.7
|
|
|
|
|
0.7
|
|
|
Other Current Assets
|
|||
Available-for-sale securities
|
3.9
|
|
|
|
|
|
|
3.9
|
|
|
Other Assets
|
||||
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Balance Sheet Classification
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
1,781.2
|
|
|
|
|
|
|
$
|
1,781.2
|
|
|
|
||
Short-term investments
|
23.8
|
|
|
|
|
|
|
23.8
|
|
|
|
||||
Available-for-sale securities
|
3.8
|
|
|
|
|
|
|
3.8
|
|
|
Other Assets
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Forward foreign exchange contracts
|
|
|
$
|
0.1
|
|
|
|
|
$
|
0.1
|
|
|
Other Current Liabilities
|
|
2012
|
|
2011
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
1,956.3
|
|
|
$
|
1,956.3
|
|
|
$
|
1,781.2
|
|
|
$
|
1,781.2
|
|
Short-term investments
|
16.5
|
|
|
16.5
|
|
|
23.8
|
|
|
23.8
|
|
||||
Forward foreign exchange contracts
|
0.7
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
||||
Available-for-sale securities
|
3.9
|
|
|
3.9
|
|
|
3.8
|
|
|
3.8
|
|
||||
Cost method investments
|
24.2
|
|
|
24.2
|
|
|
23.6
|
|
|
23.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Short-term borrowings
|
$
|
11.1
|
|
|
$
|
11.1
|
|
|
$
|
9.5
|
|
|
$
|
9.5
|
|
Forward foreign exchange contracts
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||
Debt
|
4,451.0
|
|
|
4,907.0
|
|
|
3,183.6
|
|
|
3,370.5
|
|
13.
|
Subsequent Events
|
|
(In millions)
|
||||||
|
|
|
|
||||
|
|
|
|
||||
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Revenue
|
$
|
3,406.6
|
|
|
$
|
3,380.9
|
|
Operating Expenses:
|
|
|
|
||||
Salary and service costs
|
2,515.8
|
|
|
2,504.7
|
|
||
Office and general expenses
|
503.5
|
|
|
502.8
|
|
||
|
|
|
|
||||
Total Operating Expenses
|
3,019.3
|
|
|
3,007.5
|
|
||
Add back: Amortization of intangible assets
|
27.3
|
|
|
23.7
|
|
||
|
|
|
|
||||
|
2,992.0
|
|
|
2,983.8
|
|
||
Earnings before interest, taxes and
amortization of intangible assets (“EBITA”)
|
414.6
|
|
|
397.1
|
|
||
EBITA Margin - %
|
12.2
|
%
|
|
11.7
|
%
|
||
Deduct: Amortization of intangible assets
|
27.3
|
|
|
23.7
|
|
||
|
|
|
|
||||
Operating Income
|
387.3
|
|
|
373.4
|
|
||
Operating Margin - %
|
11.4
|
%
|
|
11.0
|
%
|
||
Interest Expense
|
47.8
|
|
|
39.8
|
|
||
Interest Income
|
7.5
|
|
|
7.9
|
|
||
Income Before Income Taxes and
Income From Equity Method Investments
|
347.0
|
|
|
341.5
|
|
||
Income Tax Expense
|
118.7
|
|
|
117.1
|
|
||
Income From Equity Method Investments
|
5.3
|
|
|
4.5
|
|
||
|
|
|
|
||||
Net Income
|
233.6
|
|
|
228.9
|
|
||
Less: Net Income Attributed To Noncontrolling Interests
|
29.7
|
|
|
25.2
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Net Income - Omnicom Group Inc.
|
$
|
203.9
|
|
|
$
|
203.7
|
|
|
|
|
|
|
Total
|
|
Domestic
|
|
International
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Quarter ended September 30, 2011
|
$
|
3,380.9
|
|
|
|
|
$
|
1,703.2
|
|
|
|
|
$
|
1,677.7
|
|
|
|
|||
Components of revenue change:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Foreign exchange impact
|
(115.3
|
)
|
|
(3.4
|
)%
|
|
—
|
|
|
—
|
%
|
|
(115.3
|
)
|
|
(6.9
|
)%
|
|||
Acquisitions, net of dispositions
|
23.5
|
|
|
0.7
|
%
|
|
1.5
|
|
|
0.1
|
%
|
|
22.0
|
|
|
1.3
|
%
|
|||
Organic growth
|
117.5
|
|
|
3.5
|
%
|
|
53.4
|
|
|
3.1
|
%
|
|
64.1
|
|
|
3.8
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Quarter ended September 30, 2012
|
$
|
3,406.6
|
|
|
0.8
|
%
|
|
$
|
1,758.1
|
|
|
3.2
|
%
|
|
$
|
1,648.5
|
|
|
(1.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
The foreign exchange impact is calculated by first converting the current period’s local currency revenue using the average exchange rates from the equivalent prior period to arrive at a constant currency revenue (in this case
$3,521.9 million
for the Total column in the table). The foreign exchange impact equals the difference between the current period revenue in U.S. dollars and the current period revenue in constant currency (in this case
$3,406.6 million
less
$3,521.9 million
for the Total column in the table).
|
•
|
The acquisition component is calculated by aggregating the applicable prior period revenue of the acquired businesses, less revenue of any business included in the prior period revenue that was disposed of subsequent to the period.
|
•
|
Organic growth is calculated by subtracting both the foreign exchange and acquisition revenue components from total revenue growth.
|
•
|
The percentage change is calculated by dividing the individual component amount by the prior period revenue base of that component (in the case
$3,380.9 million
for the Total column in the table).
|
|
Revenue
|
|
% Change
|
|
% Organic Growth
|
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
United States
|
$
|
1,758.1
|
|
|
3.2
|
%
|
|
3.1
|
%
|
Euro Markets
|
528.1
|
|
|
(14.4
|
)%
|
|
(1.8
|
)%
|
|
United Kingdom
|
314.3
|
|
|
(0.1
|
)%
|
|
(0.1
|
)%
|
|
Other
|
806.1
|
|
|
8.0
|
%
|
|
10.2
|
%
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
$
|
3,406.6
|
|
|
0.8
|
%
|
|
3.5
|
%
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
2012
|
|
2011
|
|
2012 vs 2011
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$
|
|
% of
Revenue
|
|
$
|
|
% of
Revenue
|
|
$
|
|
%
Change
|
|
% Organic Growth
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advertising
|
$
|
1,587.0
|
|
|
46.6
|
%
|
|
$
|
1,549.2
|
|
|
45.8
|
%
|
|
$
|
37.8
|
|
|
2.4
|
%
|
|
5.7
|
%
|
CRM
|
1,264.6
|
|
|
37.1
|
%
|
|
1,276.2
|
|
|
37.8
|
%
|
|
(11.6
|
)
|
|
(0.9
|
)%
|
|
2.4
|
%
|
|||
Public relations
|
313.8
|
|
|
9.2
|
%
|
|
312.1
|
|
|
9.2
|
%
|
|
1.7
|
|
|
0.5
|
%
|
|
(0.3
|
)%
|
|||
Specialty communications
|
241.2
|
|
|
7.1
|
%
|
|
243.4
|
|
|
7.2
|
%
|
|
(2.2
|
)
|
|
(0.9
|
)%
|
|
(0.3
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$
|
3,406.6
|
|
|
|
|
$
|
3,380.9
|
|
|
|
|
$
|
25.7
|
|
|
0.8
|
%
|
|
3.5
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industry
|
|
2012
|
|
2011
|
||
|
|
|
|
|
||
|
|
|
|
|
||
Food and Beverage
|
|
13.4
|
%
|
|
13.5
|
%
|
Consumer Products
|
|
9.3
|
%
|
|
9.1
|
%
|
Pharmaceuticals and Health Care
|
|
9.6
|
%
|
|
10.0
|
%
|
Financial Services
|
|
8.5
|
%
|
|
8.7
|
%
|
Technology
|
|
9.4
|
%
|
|
9.0
|
%
|
Auto
|
|
8.7
|
%
|
|
7.7
|
%
|
Travel and Entertainment
|
|
6.1
|
%
|
|
6.4
|
%
|
Telecommunications
|
|
6.5
|
%
|
|
7.3
|
%
|
Retail
|
|
6.9
|
%
|
|
6.4
|
%
|
Other
|
|
21.6
|
%
|
|
21.9
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
|
2012
|
|
2011
|
|
2012 vs 2011
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
$
|
|
%
of
Revenue
|
|
% of
Total
Operating
Expenses
|
|
$
|
|
%
of
Revenue
|
|
% of
Total
Operating
Expenses
|
|
$
Change
|
|
%
Change
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue
|
$
|
3,406.6
|
|
|
|
|
|
|
$
|
3,380.9
|
|
|
|
|
|
|
$
|
25.7
|
|
|
0.8
|
%
|
||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salary and service costs
|
2,515.8
|
|
|
73.9
|
%
|
|
83.3
|
%
|
|
2,504.7
|
|
|
74.1
|
%
|
|
83.3
|
%
|
|
11.1
|
|
|
0.4
|
%
|
|||
Office and general expenses
|
503.5
|
|
|
14.8
|
%
|
|
16.7
|
%
|
|
502.8
|
|
|
14.9
|
%
|
|
16.7
|
%
|
|
0.7
|
|
|
0.1
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Expenses
|
3,019.3
|
|
|
88.6
|
%
|
|
|
|
3,007.5
|
|
|
89.0
|
%
|
|
|
|
11.8
|
|
|
0.4
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Income
|
$
|
387.3
|
|
|
11.4
|
%
|
|
|
|
$
|
373.4
|
|
|
11.0
|
%
|
|
|
|
$
|
13.9
|
|
|
3.7
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
||||||
|
|
|
|
||||
|
|
|
|
||||
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Revenue
|
$
|
10,274.8
|
|
|
$
|
10,019.6
|
|
Operating Expenses:
|
|
|
|
||||
Salary and service costs
|
7,491.5
|
|
|
7,395.8
|
|
||
Office and general expenses
|
1,527.1
|
|
|
1,440.1
|
|
||
|
|
|
|
||||
Total Operating Expenses
|
9,018.6
|
|
|
8,835.9
|
|
||
Add back: Amortization of intangible assets
|
75.2
|
|
|
67.7
|
|
||
|
|
|
|
||||
|
8,943.4
|
|
|
8,768.2
|
|
||
Earnings before interest, taxes and
amortization of intangible assets (“EBITA”)
|
1,331.4
|
|
|
1,251.4
|
|
||
EBITA Margin - %
|
13.0
|
%
|
|
12.5
|
%
|
||
Deduct: Amortization of intangible assets
|
75.2
|
|
|
67.7
|
|
||
|
|
|
|
||||
Operating Income
|
1,256.2
|
|
|
1,183.7
|
|
||
Operating Margin - %
|
12.2
|
%
|
|
11.8
|
%
|
||
Interest Expense
|
130.3
|
|
|
118.6
|
|
||
Interest Income
|
26.0
|
|
|
26.8
|
|
||
Income Before Income Taxes and
Income From Equity Method Investments
|
1,151.9
|
|
|
1,091.9
|
|
||
Income Tax Expense
|
389.9
|
|
|
349.0
|
|
||
Income From Equity Method Investments
|
11.9
|
|
|
10.3
|
|
||
|
|
|
|
||||
Net Income
|
773.9
|
|
|
753.2
|
|
||
Less: Net Income Attributed To Noncontrolling Interests
|
82.7
|
|
|
72.5
|
|
||
|
|
|
|
||||
|
|
|
|
||||
Net Income - Omnicom Group Inc.
|
$
|
691.2
|
|
|
$
|
680.7
|
|
|
|
|
|
|
Total
|
|
Domestic
|
|
International
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Nine months ended September 30, 2011
|
$
|
10,019.6
|
|
|
—
|
|
|
$
|
5,120.0
|
|
|
—
|
|
|
$
|
4,899.6
|
|
|
—
|
|
Components of revenue change:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Foreign exchange impact
|
(281.8
|
)
|
|
(2.8
|
)%
|
|
—
|
|
|
—
|
%
|
|
(281.8
|
)
|
|
(5.8
|
)%
|
|||
Acquisitions, net of dispositions
|
79.9
|
|
|
0.8
|
%
|
|
(5.3
|
)
|
|
(0.1
|
)%
|
|
85.2
|
|
|
1.7
|
%
|
|||
Organic growth
|
457.1
|
|
|
4.5
|
%
|
|
222.3
|
|
|
4.3
|
%
|
|
234.8
|
|
|
4.8
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Nine months ended September 30, 2012
|
$
|
10,274.8
|
|
|
2.5
|
%
|
|
$
|
5,337.0
|
|
|
4.2
|
%
|
|
$
|
4,937.8
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
The foreign exchange impact is calculated by first converting the current period’s local currency revenue using the average exchange rates from the equivalent prior period to arrive at a constant currency revenue (in this case
$10,556.6 million
for the Total column in the table). The foreign exchange impact equals the difference between the current period revenue in U.S. dollars and the current period revenue in constant currency (in this case
$10,274.8 million
less
$10,556.6 million
for the Total column in the table).
|
•
|
The acquisition component is calculated by aggregating the applicable prior period revenue of the acquired businesses, less revenue of any business included in the prior period revenue that was disposed of subsequent to the period.
|
•
|
Organic growth is calculated by subtracting both the foreign exchange and acquisition revenue components from total revenue growth.
|
•
|
The percentage change is calculated by dividing the individual component amount by the prior period revenue base of that component (in the case
$10,019.6 million
for the Total column in the table).
|
|
Revenue
|
|
% Change
|
|
% Organic Growth
|
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
United States
|
$
|
5,337.0
|
|
|
4.2
|
%
|
|
4.3
|
%
|
Euro Markets
|
1,652.3
|
|
|
(11.0
|
)%
|
|
(1.1
|
)%
|
|
United Kingdom
|
912.1
|
|
|
1.5
|
%
|
|
2.3
|
%
|
|
Other
|
2,373.4
|
|
|
10.7
|
%
|
|
10.9
|
%
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
$
|
10,274.8
|
|
|
2.5
|
%
|
|
4.5
|
%
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
2012
|
|
2011
|
|
2012 vs 2011
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$
|
|
% of
Revenue
|
|
$
|
|
% of
Revenue
|
|
$
|
|
%
Change
|
|
% Organic Growth
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advertising
|
$
|
4,827.9
|
|
|
47.0
|
%
|
|
$
|
4,615.4
|
|
|
46.1
|
%
|
|
$
|
212.5
|
|
|
4.6
|
%
|
|
7.1
|
%
|
CRM
|
3,753.8
|
|
|
36.5
|
%
|
|
3,710.7
|
|
|
37.0
|
%
|
|
43.1
|
|
|
1.2
|
%
|
|
3.8
|
%
|
|||
Public relations
|
942.9
|
|
|
9.2
|
%
|
|
915.6
|
|
|
9.1
|
%
|
|
27.3
|
|
|
3.0
|
%
|
|
1.6
|
%
|
|||
Specialty communications
|
750.2
|
|
|
7.3
|
%
|
|
777.9
|
|
|
7.8
|
%
|
|
(27.7
|
)
|
|
(3.6
|
)%
|
|
(3.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$
|
10,274.8
|
|
|
100.0
|
%
|
|
$
|
10,019.6
|
|
|
100.0
|
%
|
|
$
|
255.2
|
|
|
2.5
|
%
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industry
|
|
2012
|
|
2011
|
||
|
|
|
|
|
||
|
|
|
|
|
||
Food and Beverage
|
|
13.8
|
%
|
|
14.1
|
%
|
Consumer Products
|
|
9.3
|
%
|
|
9.1
|
%
|
Pharmaceuticals and Health Care
|
|
9.8
|
%
|
|
10.3
|
%
|
Financial Services
|
|
8.7
|
%
|
|
8.9
|
%
|
Technology
|
|
9.0
|
%
|
|
8.8
|
%
|
Auto
|
|
8.5
|
%
|
|
7.6
|
%
|
Travel and Entertainment
|
|
6.1
|
%
|
|
6.3
|
%
|
Telecommunications
|
|
6.5
|
%
|
|
7.1
|
%
|
Retail
|
|
7.0
|
%
|
|
6.5
|
%
|
Other
|
|
21.3
|
%
|
|
21.3
|
%
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
|
2012
|
|
2011
|
|
2012 vs 2011
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
$
|
|
%
of
Revenue
|
|
% of
Total
Operating
Expenses
|
|
$
|
|
%
of
Revenue
|
|
% of
Total
Operating
Expenses
|
|
$
Change
|
|
%
Change
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue
|
$
|
10,274.8
|
|
|
|
|
|
|
$
|
10,019.6
|
|
|
|
|
|
|
$
|
255.2
|
|
|
2.5
|
%
|
||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salary and service costs
|
7,491.5
|
|
|
72.9
|
%
|
|
83.1
|
%
|
|
7,395.8
|
|
|
73.8
|
%
|
|
83.7
|
%
|
|
95.7
|
|
|
1.3
|
%
|
|||
Office and general expenses
|
1,527.1
|
|
|
14.9
|
%
|
|
16.9
|
%
|
|
1,440.1
|
|
|
14.4
|
%
|
|
16.3
|
%
|
|
87.0
|
|
|
6.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Expenses
|
9,018.6
|
|
|
87.8
|
%
|
|
|
|
8,835.9
|
|
|
88.2
|
%
|
|
|
|
182.7
|
|
|
2.1
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Income
|
$
|
1,256.2
|
|
|
12.2
|
%
|
|
|
|
$
|
1,183.7
|
|
|
11.8
|
%
|
|
|
|
$
|
72.5
|
|
|
6.1
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
||||||
|
|
|
|
||||
|
|
|
|
||||
|
Repositioning
Actions
|
|
Remeasurement
Gain
|
||||
|
|
|
|
||||
|
|
|
|
||||
Salary and service costs
|
$
|
92.8
|
|
|
$
|
—
|
|
Office and general expenses
|
38.5
|
|
|
(123.4
|
)
|
||
|
|
|
|
||||
|
|
|
|
||||
|
$
|
131.3
|
|
|
$
|
(123.4
|
)
|
|
|
|
|
|
Increase (Decrease)
|
||||||
|
|
|
|
||||
|
|
|
|
||||
|
Income Before
Income
Taxes
|
|
Income
Tax
Expense
|
||||
|
|
|
|
||||
|
|
|
|
||||
Repositioning actions
|
$
|
(131.3
|
)
|
|
$
|
(39.5
|
)
|
Remeasurement gain
|
123.4
|
|
|
2.8
|
|
||
Accrual for uncertain tax positions
|
—
|
|
|
9.0
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
$
|
(7.9
|
)
|
|
$
|
(27.7
|
)
|
|
|
|
|
|
June 30,
|
||
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Long-Term Growth Rate
|
4%
|
|
4%
|
WACC
|
10.3% - 10.9%
|
|
10.5% - 11.2%
|
|
2012
|
|
2011
|
||||
|
|
|
|
||||
|
|
|
|
||||
Average amount outstanding during the quarter
|
$
|
238.3
|
|
|
$
|
750.3
|
|
Maximum amount outstanding during the quarter
|
$
|
577.9
|
|
|
$
|
1,084.0
|
|
Total issuances during the quarter
|
$
|
2,558.0
|
|
|
$
|
5,414.9
|
|
Average days outstanding
|
8.6
|
|
|
12.8
|
|
||
Weighted average interest rate
|
0.42
|
%
|
|
0.37
|
%
|
|
Debt
Carrying Value
|
|
Available
Credit
|
||||
|
|
|
|
||||
|
|
|
|
||||
Short-term borrowings (due in less than one year)
|
$
|
11.1
|
|
|
$
|
—
|
|
Outstanding Commercial Paper issuances
|
—
|
|
|
—
|
|
||
Borrowings under the Credit Agreement
|
—
|
|
|
2,500.0
|
|
||
5.90% Senior Notes due April 15, 2016
|
1,000.0
|
|
|
—
|
|
||
6.25% Senior Notes due July 15, 2019
|
500.0
|
|
|
—
|
|
||
4.45% Senior Notes due August 15, 2020
|
1,000.0
|
|
|
—
|
|
||
3.625% Senior Notes due May 1, 2022
|
1,250.0
|
|
|
|
|||
Convertible Notes due July 31, 2032
|
252.7
|
|
|
—
|
|
||
Convertible Notes due June 15, 2033
|
0.1
|
|
|
—
|
|
||
Convertible Notes due July 1, 2038
|
406.6
|
|
|
—
|
|
||
Other debt
|
0.4
|
|
|
—
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
4,420.9
|
|
|
|
|||
|
|
|
|
||||
Unamortized premium (discount) on Senior Notes, net
|
16.2
|
|
|
—
|
|
||
Deferred gain from termination of interest rate swaps on Senior Notes due 2016
|
25.0
|
|
|
—
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
$
|
4,462.1
|
|
|
$
|
2,500.0
|
|
|
|
|
|
Period
|
|
Total
Number of
Shares Purchased
|
|
Average
Price Paid
Per Share
|
|
Total Number
of Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
|
Maximum Number
of Shares that May
Yet Be Purchased Under
the Plans or Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 2012
|
|
454,254
|
|
|
$49.23
|
|
—
|
|
—
|
August 2012
|
|
422,640
|
|
|
$51.99
|
|
—
|
|
—
|
September 2012
|
|
2,831,615
|
|
|
$53.47
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,708,509
|
|
|
$52.78
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
3(ii)
|
By-laws of Omnicom Group Inc., as amended and restated on May 22, 2012 (Exhibit 3.2 to our Current Report on Form 8-K (File No. 1-10551) dated May 24, 2012 and incorporated herein by reference).
|
|
|
4.1
|
Sixth Supplemental Indenture, dated as of July 20, 2012, among Omnicom Group Inc., Omnicom Capital Inc. and Deutsche Bank Trust Company Americas, as trustee, to the Indenture, dated as of March 6, 2002, between Omnicom Group Inc. and JPMorgan Chase Bank, as trustee (Exhibit 4.1 to our Current Report on Form 8-K (File No. 1-10551) dated July 20, 2012 (“July 20, 2012 8-K”) and incorporated herein by reference).
|
|
|
4.2
|
Seventh Supplemental Indenture, dated as of July 20, 2012, among Omnicom Group Inc., Omnicom Capital Inc. and Deutsche Bank Trust Company Americas, as trustee, to the Indenture, dated as of June 10, 2003, between Omnicom Group Inc. and JPMorgan Chase Bank, as trustee (Exhibit 4.2 to the July 20, 2012 8-K and incorporated herein by reference).
|
|
|
4.3
|
Second Supplemental Indenture, dated as of July 20, 2012, among Omnicom Group Inc., Omnicom Capital Inc. and Deutsche Bank Trust Company Americas, as trustee, to the Indenture, dated as of March 29, 2006, among Omnicom Group Inc., Omnicom Capital Inc., Omnicom Finance Inc. and Deutsche Bank Trust Company Americas, as trustee (Exhibit 4.3 to the July 20, 2012 8-K and incorporated herein by reference).
|
|
|
4.4
|
Fourth Supplemental Indenture, dated as of July 20, 2012, among Omnicom Group Inc., Omnicom Capital Inc. and Deutsche Bank Trust Company Americas, as trustee, to the Indenture, dated as of July 1, 2009, among Omnicom Group Inc., Omnicom Capital Inc., Omnicom Finance Inc. and Deutsche Bank Trust Company Americas, as trustee (Exhibit 4.4 to the July 20, 2012 8-K and incorporated herein by reference).
|
|
|
4.5
|
Fifth Supplemental Indenture, dated as of August 9, 2012, among Omnicom Group Inc., Omnicom Capital Inc. and Deutsche Bank Trust Company Americas, as trustee, to the Indenture, dated as of July 1, 2009, among Omnicom Group Inc., Omnicom Capital Inc., Omnicom Finance Inc. and Deutsche Bank Trust Company Americas, as trustee, in connection with our issuance of $500 million of 3.625% Senior Notes due 2022 (Exhibit 4.1 to our Current Report on Form 8-K (File No. 1-10551) dated August 9, 2012 (“August 9, 2012 8-K”) and incorporated herein by reference).
|
|
|
4.6
|
Form of 3.625% Notes due 2022 (Exhibit 4.2 to the August 9, 2012 8-K and incorporated herein by reference).
|
|
|
12
|
Computation of Ratio of Earnings to Fixed Charges.
|
|
|
31.1
|
Certification of the Chief Executive Officer and President required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.
|
|
|
31.2
|
Certification of the Executive Vice President and Chief Financial Officer required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.
|
|
|
32
|
Certification of the Chief Executive Officer and President and the Executive Vice President and Chief Financial Officer required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. §1350.
|
|
|
101
|
Interactive Data File.
|
|
|
OMNICOM GROUP INC.
|
|
|
|
Dated:
|
October 18, 2012
|
/s/ Randall J. Weisenburger
|
|
|
|
|
|
|
|
|
Randall J. Weisenburger
Executive Vice President and Chief Financial Officer (Principal Financial Officer and Authorized Signatory)
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
No Customers Found
Suppliers
Supplier name | Ticker |
---|---|
Microsoft Corporation | MSFT |
The Walt Disney Company | DIS |
Comcast Corporation | CMCSA |
Fox Corporation | FOXA |
News Corporation | NWSA |
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|