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)