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Segment Reporting
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Our 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, direct service costs and occupancy and other costs which include rent and occupancy costs, technology costs and overhead expenses. Therefore, given these similarities, we aggregate our six operating segments, which are our agency networks, into one reporting segment. The chief operating decision maker, or CODM, reviews segment operating income for each network and allocates resources accordingly. The CODM includes Omnicom’s chief executive officer, chief financial officer and chief operating officer.
Segment operating results include allocations of costs, including information technology, and other shared services costs, that are allocated using metrics designed to correlate the allocation with consumption.
Segment revenue, segment operating expenses and segment operating income of our operating segments:
Year Ended December 31,
202420232022
Revenue$15,689.1 $14,692.2 $14,289.1
Segment Operating Expenses:
Salary and service costs:
Salary and related costs$7,441.4 $7,212.8 $7,197.9
Third-party service costs3,348.6 2,917.9 2,585.5
Third-party incidental costs642.5 570.5 542.5
Total salary and service costs11,432.5 10,701.2 10,325.9
Occupancy and other costs1,274.4 1,168.8 1,168.6
   Segment cost of services12,706.9 11,870.0 11,494.5
Selling, general and administrative expenses408.1 393.7 378.5
Depreciation and amortization241.7 211.1 219.4
Total segment operating expenses13,356.7 12,474.8 12,092.4
Segment Operating Income$2,332.4 $2,217.4 $2,196.7
Reconciliation of segment operating income to operating income and income before income taxes and income from equity method investments:
Year Ended December 31,
202420232022
Segment Operating Income$2,332.4 $2,217.4 $2,196.7 
Real estate and other repositioning costs57.8 191.5 — 
Changes arising from the effects of the war in Ukraine — 113.4 
Gain on disposition of subsidiary (78.8)— 
Operating Income$2,274.6 $2,104.7 $2,083.3 
Interest Expense247.9 218.5 208.6 
Interest Income100.9 106.7 70.7 
Income Before Income Taxes and Income From Equity Method Investments$2,127.6 $1,992.9 $1,945.4 
We reconcile segment operating income to income before income taxes and income from equity method investments as income tax expense is reviewed at the consolidated level and the segment managers are not held accountable for performance of net income.
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:
AmericasEMEAAsia-Pacific
December 31, 2024
Revenue$9,083.9 $4,758.2 $1,847.0 
Long-lived assets and goodwill8,166.6 3,693.9 685.2 
December 31, 2023
Revenue$8,337.8 $4,576.5 $1,777.9 
Long-lived assets and goodwill7,749.5 3,523.3 730.8 
December 31, 2022
Revenue$8,185.0 $4,357.2 $1,746.9 
Long-lived assets and goodwill7,727.0 3,315.2 757.2