The acquisition of Flywheel Digital for approximately $845 million enhances Omnicom's digital commerce offerings. This acquisition is expected to contribute to future revenue growth and strengthen the company's position in the digital commerce space.

Omnicom entered into a merger agreement with Interpublic Group of Companies (IPG). The merger is subject to customary closing conditions, including regulatory and stockholder approvals.

Organic revenue growth was primarily driven by Media & Advertising and Precision Marketing disciplines. This indicates strong demand for these core service offerings and highlights Omnicom's ability to capitalize on market trends.

Operating expenses included $57.8 million in repositioning costs, primarily related to severance. These strategic initiatives are designed to increase efficiencies in international operations and consolidate production services.

Omnicom's client-centric approach, which involves organizing services around client needs and utilizing virtual client networks, continues to be a key driver of business growth. This approach facilitates collaboration and integration across service platforms.

Omnicom is actively exploring the use of generative AI to improve service delivery and enhance productivity. The company is committed to responsible AI practices and is evaluating related risks and challenges.

The proposed merger with IPG is subject to regulatory approvals and integration risks. Failure to complete the merger or integrate the businesses successfully could negatively impact Omnicom's business and results of operations.

Omnicom relies extensively on information technology systems and faces cybersecurity risks. Security breaches and unauthorized access to data could adversely affect the business, results of operations, and reputation.

Adverse economic conditions, including geopolitical events and inflation, could lead to reductions in client spending on marketing and communications services. This could negatively impact Omnicom's revenue and profitability.

The company operates in a highly competitive industry and competes against other global, national and regional advertising, marketing and communications services companies, as well as technology, social media and professional services companies.

Key competitive considerations for retaining existing clients and winning new clients include the ability to develop solutions that meet client needs in a rapidly changing environment, the quality and effectiveness of our services and our ability to serve clients efficiently, particularly large multinational clients, on a broad geographic basis.

Clients periodically review and change their marketing and communications requirements and relationships. If we are unable to remain competitive or retain key clients, our business, results of operations and financial condition may be adversely affected.

The company undertook repositioning actions in the first and second quarters of 2023 to reduce real estate requirements, rebalance our workforce, and consolidate operations in certain markets. These actions resulted in real estate operating lease impairment charges, severance and other exit costs of $191.5 million.

Given our size and breadth, we manage our business by monitoring several financial indicators. The key performance indicators that we focus on are revenue growth and variability of operating expenses.

Operating expenses for 2024 include the impact of repositioning costs, primarily related to severance, recorded in the second quarter of 2024 for $57.8 million in connection with our strategic initiatives to increase efficiencies in our international operations and the start of the consolidation of our production services

We continually evaluate the use of AI in our business processes, and in 2023, we entered into strategic partnerships with leading AI technology companies, enabling enhanced product and service capabilities in generative AI.

We rely on our own and third-party service providers' information technology systems and infrastructure to connect with our clients, people and others, and to collect, store, transfer, process and use business, personal and financial data.

We face cybersecurity risks that threaten the confidentiality, integrity and availability of our information technology systems or data stored on such systems. Additionally, hardware, software applications or services that we develop or procure from third parties may contain defects in design or manufacture or other problems that could compromise the confidentiality, integrity or availability of our information technology systems or data stored on such systems.

On August 2, 2024, Omnicom issued $600 million 5.30% Senior Notes due 2034. The net proceeds from the issuance, along with available cash, were used to fund the repayment of our $750 million 3.65% Senior Notes on November 1, 2024.

The company continues to repurchase shares. During the three months ended December 31, 2024, we withheld 85,005 shares of common stock from employees to satisfy estimated statutory income tax obligations related to the vesting of restricted stock awards and exercises of stock options.

Capital expenditures were (140.6) million. These remained consistent with the previous year, indicating a steady investment in infrastructure.

Our environmental sustainability initiatives focus on emissions reductions through efficiency of office space, energy usage, travel and vendor engagement. In connection with our environmental sustainability efforts, we are a signatory to the UN Global Compact, a principle-based framework to encourage businesses and firms worldwide to adopt sustainable and socially responsible policies.

Human capital management strategies are developed collectively by senior management, including the management teams of our networks, practice areas, and agencies, and are overseen by our Board of Directors.

Various regulatory bodies have proposed or enacted climate-related reporting requirements and similar proposals, including the SEC's climate-related reporting proposal and California's climate-related disclosure laws. We are monitoring the requirements in all the jurisdictions we operate and evaluating the impacts of those requirements and related reporting timelines.

Adverse global economic conditions pose a risk that our clients may reduce, postpone or cancel spending on marketing and communications services, which would reduce the demand for our services.

Revenue is typically lower in the first and third quarters and higher in the second and fourth quarters, reflecting client spending patterns during the year and additional project work that usually occurs in the fourth quarter.

Our clients operate in virtually every sector of the global economy. In many cases, multiple agencies, practice areas or networks serve different brands, product groups or both within the same client.