XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Segments | 9 Months Ended
--- | ---
Sep. 30, 2016
Segment Reporting [Abstract] |
Segments |
10. | Segments
We report our operations through the following segments: (1) Americas; (2) Europe, Middle East and Africa (EMEA); (3) Asia Pacific; (4) Global Investment Management; and (5) Development Services. The Americas segment is our largest segment of operations and provides a comprehensive range of services throughout the U.S. and in the largest regions of Canada and key markets in Latin America. The primary services offered consist of the following: property sales, property leasing, mortgage services, appraisal and valuation, property management and occupier outsourcing services. Our EMEA and Asia Pacific segments generally provide services similar to the Americas business segment. The EMEA segment has operations primarily in Europe, while the Asia Pacific segment has operations in Asia, Australia and New Zealand. Our Global Investment Management business provides investment management services to clients seeking to generate returns and diversification through direct and indirect investments in real estate in North America, Europe and Asia Pacific. Our Development Services business consists of real estate development and investment activities primarily in the U.S. Summarized financial information by segment is as follows (dollars in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2016 |  |  | 2015 (1) |  |  | 2016 |  |  | 2015 (1) |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 1,770,369 |  |  | $ | 1,556,648 |  |  | $ | 5,129,684 |  |  | $ | 4,218,753 |
EMEA |  |  | 956,492 |  |  |  | 737,863 |  |  |  | 2,765,825 |  |  |  | 1,817,601 |
Asia Pacific |  |  | 358,320 |  |  |  | 285,337 |  |  |  | 1,023,162 |  |  |  | 755,531 |
Global Investment Management |  |  | 91,807 |  |  |  | 114,094 |  |  |  | 277,924 |  |  |  | 318,371 |
Development Services |  |  | 16,499 |  |  |  | 18,617 |  |  |  | 51,163 |  |  |  | 45,312 |
Total revenue |  | $ | 3,193,487 |  |  | $ | 2,712,559 |  |  | $ | 9,247,758 |  |  | $ | 7,155,568 |
EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 186,274 |  |  | $ | 197,379 |  |  | $ | 568,019 |  |  | $ | 581,397 |
EMEA |  |  | 49,774 |  |  |  | 56,666 |  |  |  | 101,690 |  |  |  | 114,328 |
Asia Pacific |  |  | 26,744 |  |  |  | 33,252 |  |  |  | 57,673 |  |  |  | 77,438 |
Global Investment Management |  |  | 6,054 |  |  |  | 29,397 |  |  |  | 53,577 |  |  |  | 80,390 |
Development Services |  |  | 15,709 |  |  |  | 9,883 |  |  |  | 66,109 |  |  |  | 16,172 |
Total EBITDA |  | $ | 284,555 |  |  | $ | 326,577 |  |  | $ | 847,068 |  |  | $ | 869,725 |
(1) | During 2016, we changed our methodology for allocating certain costs to our reporting segments, including stock compensation, currency hedging and certain intercompany transactions. Prior year amounts have been reclassified to conform with the current year presentation. Such changes had no impact on our consolidated results.
EBITDA represents earnings before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization. EBITDA is not a recognized measurement under GAAP and when analyzing our operating performance, investors should use EBITDA in addition to, and not as an alternative for, net income as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of EBITDA may not be comparable to similarly titled measures of other companies. We generally use EBITDA to evaluate operating performance and for other discretionary purposes, and we believe that this measure provides a more complete understanding of ongoing operations and enhances comparability of current results to prior periods. We further believe that investors may find EBITDA useful in evaluating our operating performance compared to that of other companies in our industry because EBITDA calculations generally eliminate the effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions, the effects of financings and income taxes and the accounting effects of capital spending. EBITDA may vary for different companies for reasons unrelated to overall operating performance. EBITDA is not intended to be a measure of free cash flow for our discretionary use because it does not consider certain cash requirements such as tax and debt service payments. EBITDA may also differ from the amount calculated under similarly titled definitions in our debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt and making certain restricted payments. Net interest expense and write-off of financing costs on extinguished debt have been expensed in the segment where incurred. Provision for income taxes has been allocated among our segments by using applicable U.S. and foreign effective tax rates. EBITDA for our segments is calculated as follows (dollars in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2016 |  |  | 2015 (1) |  |  | 2016 |  |  | 2015 (1) |
Americas |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to CBRE Group, Inc. |  | $ | 69,176 |  |  | $ | 92,008 |  |  | $ | 231,158 |  |  | $ | 286,796 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 62,545 |  |  |  | 47,209 |  |  |  | 186,342 |  |  |  | 134,750 |
Interest expense, net |  |  | 21,492 |  |  |  | 9,692 |  |  |  | 64,583 |  |  |  | 17,485 |
Write-off of financing costs on extinguished debt |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,685 |
Royalty and management service income |  |  | (3,138 | ) |  |  | (2,703 | ) |  |  | (23,295 | ) |  |  | (9,668 | )
Provision for income taxes |  |  | 36,199 |  |  |  | 51,173 |  |  |  | 109,231 |  |  |  | 149,349 |
EBITDA |  | $ | 186,274 |  |  | $ | 197,379 |  |  | $ | 568,019 |  |  | $ | 581,397 |
EMEA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to CBRE Group, Inc. |  | $ | 23,524 |  |  | $ | 24,535 |  |  | $ | 19,278 |  |  | $ | 24,921 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 19,385 |  |  |  | 15,175 |  |  |  | 50,647 |  |  |  | 44,574 |
Interest expense, net |  |  | 4,078 |  |  |  | 10,834 |  |  |  | 11,916 |  |  |  | 33,656 |
Royalty and management service (income) expense |  |  | (2,992 | ) |  |  | (1,452 | ) |  |  | 685 |  |  |  | (4,313 | )
Provision for income taxes |  |  | 5,779 |  |  |  | 7,574 |  |  |  | 19,164 |  |  |  | 15,490 |
EBITDA |  | $ | 49,774 |  |  | $ | 56,666 |  |  | $ | 101,690 |  |  | $ | 114,328 |
Asia Pacific |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to CBRE Group, Inc. |  | $ | 11,576 |  |  | $ | 16,665 |  |  | $ | 14,068 |  |  | $ | 29,643 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 4,479 |  |  |  | 3,728 |  |  |  | 12,957 |  |  |  | 11,357 |
Interest expense, net |  |  | 1,250 |  |  |  | 800 |  |  |  | 1,292 |  |  |  | 2,689 |
Royalty and management service expense |  |  | 5,277 |  |  |  | 3,581 |  |  |  | 19,629 |  |  |  | 11,342 |
Provision for income taxes |  |  | 4,162 |  |  |  | 8,478 |  |  |  | 9,727 |  |  |  | 22,407 |
EBITDA |  | $ | 26,744 |  |  | $ | 33,252 |  |  | $ | 57,673 |  |  | $ | 77,438 |
Global Investment Management |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) income attributable to CBRE Group, Inc. |  | $ | (7,830 | ) |  | $ | 10,717 |  |  | $ | 7,635 |  |  | $ | 18,546 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 5,673 |  |  |  | 8,423 |  |  |  | 18,110 |  |  |  | 23,095 |
Interest expense, net |  |  | 7,611 |  |  |  | 8,060 |  |  |  | 23,124 |  |  |  | 23,562 |
Royalty and management service expense |  |  | 853 |  |  |  | 574 |  |  |  | 2,981 |  |  |  | 2,639 |
(Benefit of) provision for income taxes |  |  | (253 | ) |  |  | 1,623 |  |  |  | 1,727 |  |  |  | 12,548 |
EBITDA |  | $ | 6,054 |  |  | $ | 29,397 |  |  | $ | 53,577 |  |  | $ | 80,390 |
Development Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to CBRE Group, Inc. |  | $ | 7,717 |  |  | $ | 5,198 |  |  | $ | 35,859 |  |  | $ | 7,183 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 643 |  |  |  | 512 |  |  |  | 1,931 |  |  |  | 1,722 |
Interest expense, net |  |  | 1,822 |  |  |  | 155 |  |  |  | 2,590 |  |  |  | 818 |
Provision for income taxes |  |  | 5,527 |  |  |  | 4,018 |  |  |  | 25,729 |  |  |  | 6,449 |
EBITDA |  | $ | 15,709 |  |  | $ | 9,883 |  |  | $ | 66,109 |  |  | $ | 16,172 |
(1) | During 2016, we changed our methodology for allocating certain costs to our reporting segments, including stock compensation, currency hedging and certain intercompany transactions. Prior year amounts have been reclassified to conform with the current year presentation. Such changes had no impact on our consolidated results.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration