OMNICOM GROUP INC.OMC

OMNICOM GROUP INC. Segments Disclosure

10-KFiled Feb 20, 20263 min read
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 connected capabilities. 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 four 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. Beginning in December of 2025, we integrated the newly acquired IPG businesses into our existing four networks and the effect of one month of IPG’s operations were not significant to the networks operations. 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,
202520242023
Revenue$17,271.9 $15,689.1 $14,692.2
Segment Operating Expenses:
Salary and service costs:
Salary and related costs$7,777.9 $7,441.4 $7,212.8
Third-party service costs4,113.7 3,348.6 2,917.9
Third-party incidental costs752.4 642.5 570.5
Total salary and service costs12,644.0 11,432.5 10,701.2
Occupancy and other costs1,366.7 1,274.4 1,168.8
   Segment cost of services14,010.7 12,706.9 11,870.0
Selling, general and administrative expenses398.4 393.5 393.7
Depreciation and amortization276.7 241.7 211.1
Total segment operating expenses14,685.8 13,342.1 12,474.8
Segment Operating Income$2,586.1 $2,347.0 $2,217.4
Reconciliation of segment operating income to operating income and income before income taxes and income from equity method investments:
Year Ended December 31,
202520242023
Segment Operating Income$2,586.1 $2,347.0 $2,217.4 
Severance and repositioning costs1,247.0 57.8 191.5 
Acquisition-related costs
347.3 14.6 — 
Loss (gain) on assets held for sale and on disposition of subsidiary
547.1 — (78.8)
Operating Income$444.7 $2,274.6 $2,104.7 
Interest Expense263.4 247.9 218.5 
Interest Income96.9 100.9 106.7 
Income Before Income Taxes and Income From Equity Method Investments$278.2 $2,127.6 $1,992.9 
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, 2025
Revenue$10,132.4 $5,214.1 $1,925.4 
Long-lived assets and goodwill15,935.8 4,297.0 798.7 
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 

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 5, 2025
2023Feb 7, 2024
2022Feb 8, 2023
2021Feb 9, 2022
2020Feb 18, 2021
2019Feb 11, 2020
2018Feb 12, 2019
2017Feb 15, 2018
2016Feb 9, 2017
2015Feb 9, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew StandardsPay vs Performance