David Karnovsky
JPMorgan Chase & Co, Research Division

All right. So I'm happy to have back at the conference this year, Omnicom. With us today, we have John Wren, Chairman and CEO; Phil Angelastro, EVP and CFO; and at the end, Paolo Yuvienco, CTO. Thanks so much for being here today, guys.

David Karnovsky
JPMorgan Chase & Co, Research Division

John, maybe I'll start with you. So you recently reported your first full quarter following the IPG acquisition. Maybe we could start there. Can you update us on where things stand with integration and how the merits of the deal look relative to your initial expectations?

John Wren
Chairman & CEO

Okay. Well, we're well on target with our synergies and what we promised. Most of the synergies we promised this year were real estate related initially and then labor. Real estate, probably $150 million. That was taken care of and immediately almost day 1. And the second part was labor. The labor started December 1 and goes through -- well, the first part of it goes through just about now. And that was duplication of management because we didn't need as much middle management as each company had, and we made a lot of changes and consolidations.

So that was positive. We sunsetted quite a number of brands to get to the final answer, probably about $150 million to $160 million of labor was done in the first quarter. You'll see a lot more of that