10.	Guarantor and Nonguarantor Financial Statements

The following condensed consolidating financial information includes condensed consolidating balance sheets as of March 31, 2017 and December 31, 2016 and condensed consolidating statements of operations, condensed consolidating statements of comprehensive income and condensed consolidating statements of cash flows for the three months ended March 31, 2017 and 2016 of:

•

CBRE Group, Inc., as the parent; CBRE Services, as the subsidiary issuer; the guarantor subsidiaries; the nonguarantor subsidiaries;

•

Elimination entries necessary to consolidate CBRE Group, Inc., as the parent, with CBRE Services and its guarantor and nonguarantor subsidiaries; and

•

CBRE Group, Inc., on a consolidated basis.

Investments in consolidated subsidiaries are presented using the equity method of accounting. The principal elimination entries eliminate investments in consolidated subsidiaries and intercompany balances and transactions.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2017

(Dollars in thousands)

			CBRE		Guarantor		Nonguarantor					Consolidated
	Parent		Services		Subsidiaries		Subsidiaries		Eliminations			Total
ASSETS
Current Assets:
Cash and cash equivalents	$	7	$	8,678	$	40,252	$	484,344	$	−		$	533,281
Restricted cash		—		—		4,968		54,078		—			59,046
Receivables, net		—		—		996,102		1,503,013		—			2,499,115
Warehouse receivables (1)		—		—		350,501		334,632		—			685,133
Income taxes receivable		—		1,375		11,630		43,808		(1,375	)		55,438
Prepaid expenses		—		−		84,874		127,462		—			212,336
Other current assets		—		1,302		73,776		126,033		—			201,111
Total Current Assets		7		11,355		1,562,103		2,673,370		(1,375	)		4,245,460
Property and equipment, net		—		—		384,136		167,497		—			551,633
Goodwill		—		—		1,682,177		1,337,408		—			3,019,585
Other intangible assets, net		—		—		778,857		624,405		—			1,403,262
Investments in unconsolidated subsidiaries		—		—		196,497		45,989		—			242,486
Investments in consolidated subsidiaries		4,427,377		4,429,140		2,421,387		—		(11,277,904	)		—
Intercompany loan receivable		—		2,653,458		700,000		—		(3,353,458	)		—
Deferred tax assets, net		—		—		52,861		94,653		(52,861	)		94,653
Other assets, net		—		20,921		243,284		105,828		−			370,033
Total Assets	$	4,427,384	$	7,114,874	$	8,021,302	$	5,049,150	$	(14,685,598	)	$	9,927,112
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable and accrued expenses	$	—	$	7,275	$	381,816	$	931,493	$	—		$	1,320,584
Compensation and employee benefits payable		—		626		345,922		373,419		—			719,967
Accrued bonus and profit sharing		—		—		210,041		257,676		—			467,717
Income taxes payable		109		—		79,086		32,074		(1,375	)		109,894
Short-term borrowings:										—
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) (1)		—		—		344,831		326,622		—			671,453
Revolving credit facility		—		120,000		—		—		—			120,000
Other		—		—		16		—		—			16
Total short-term borrowings		—		120,000		344,847		326,622		—			791,469
Current maturities of long-term debt		—		-		—		12		—			12
Other current liabilities		—		1,833		41,942		19,762		—			63,537
Total Current Liabilities		109		129,734		1,403,654		1,941,058		(1,375	)		3,473,180
Long-Term Debt, net:
Long-term debt, net		—		2,549,256		—		2		—			2,549,258
Intercompany loan payable		1,215,330		—		1,886,440		251,688		(3,353,458	)		−
Total Long-Term Debt, net		1,215,330		2,549,256		1,886,440		251,690		(3,353,458	)		2,549,258
Deferred tax liabilities, net		—		—		—		131,003		(52,861	)		78,142
Non-current tax liabilities		—		—		38,673		2,097		—			40,770
Other liabilities		—		8,507		263,395		255,621		—			527,523
Total Liabilities		1,215,439		2,687,497		3,592,162		2,581,469		(3,407,694	)		6,668,873
Commitments and contingencies		—		—		—		—		—			—
Equity:
CBRE Group, Inc. Stockholders’ Equity		3,211,945		4,427,377		4,429,140		2,421,387		(11,277,904	)		3,211,945
Non-controlling interests		—		—		—		46,294		—			46,294
Total Equity		3,211,945		4,427,377		4,429,140		2,467,681		(11,277,904	)		3,258,239
Total Liabilities and Equity	$	4,427,384	$	7,114,874	$	8,021,302	$	5,049,150	$	(14,685,598	)	$	9,927,112

(1)

Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 4.875% senior notes, 5.25% senior notes and our 2015 Credit Agreement, a substantial majority of warehouse receivables funded under JP Morgan Chase Bank, N.A. (JP Morgan), Bank of America (BofA), TD Bank, N.A. (TD Bank), Fannie Mae ASAP and Capital One, N.A. (Capital One) lines of credit are pledged to JP Morgan, BofA, TD Bank, Fannie Mae and Capital One.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2016

(Dollars in thousands)

			CBRE		Guarantor		Nonguarantor					Consolidated
	Parent		Services		Subsidiaries		Subsidiaries		Eliminations			Total
ASSETS
Current Assets:
Cash and cash equivalents	$	7	$	16,889	$	264,121	$	481,559	$	−		$	762,576
Restricted cash		—		—		6,967		61,869		—			68,836
Receivables, net		—		—		943,028		1,662,574		—			2,605,602
Warehouse receivables (1)		—		—		687,454		588,593		—			1,276,047
Income taxes receivable		1,915		17,364		8,170		37,456		(19,279	)		45,626
Prepaid expenses		—		—		78,296		105,811		—			184,107
Other current assets		—		1,421		64,576		113,659		—			179,656
Total Current Assets		1,922		35,674		2,052,612		3,051,521		(19,279	)		5,122,450
Property and equipment, net		—		—		395,749		165,007		—			560,756
Goodwill		—		—		1,669,683		1,311,709		—			2,981,392
Other intangible assets, net		—		—		793,525		617,514		—			1,411,039
Investments in unconsolidated subsidiaries		—		—		189,455		42,783		—			232,238
Investments in consolidated subsidiaries		4,226,629		4,076,265		2,314,549		—		(10,617,443	)		—
Intercompany loan receivable		—		2,684,421		700,000		—		(3,384,421	)		—
Deferred tax assets, net		—		—		72,325		90,334		(57,335	)		105,324
Other assets, net		—		22,229		240,707		103,452		—			366,388
Total Assets	$	4,228,551	$	6,818,589	$	8,428,605	$	5,382,320	$	(14,078,478	)	$	10,779,587
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable and accrued expenses	$	—	$	30,049	$	409,470	$	1,006,919	$	—		$	1,446,438
Compensation and employee benefits payable		—		626		402,719		369,577		—			772,922
Accrued bonus and profit sharing		—		—		506,715		383,606		—			890,321
Income taxes payable		—		—		40,946		36,684		(19,279	)		58,351
Short-term borrowings:										—
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) (1)		—		—		680,473		574,180		—			1,254,653
Other		—		—		16		—		—			16
Total short-term borrowings		—		—		680,489		574,180		—			1,254,669
Current maturities of long-term debt		—		—		—		11		—			11
Other current liabilities		—		—		81,590		21,127		—			102,717
Total Current Liabilities		—		30,675		2,121,929		2,392,104		(19,279	)		4,525,429
Long-Term Debt, net:
Long-term debt, net		—		2,548,123		—		3		—			2,548,126
Intercompany loan payable		1,214,064		—		1,916,675		253,682		(3,384,421	)		—
Total Long-Term Debt, net		1,214,064		2,548,123		1,916,675		253,685		(3,384,421	)		2,548,126
Deferred tax liabilities, net		—		—		—		128,054		(57,335	)		70,719
Non-current tax liabilities		—		—		53,422		620		—			54,042
Other liabilities		—		13,162		260,314		250,550		—			524,026
Total Liabilities		1,214,064		2,591,960		4,352,340		3,025,013		(3,461,035	)		7,722,342
Commitments and contingencies		—		—		—		—		—			—
Equity:
CBRE Group, Inc. Stockholders’ Equity		3,014,487		4,226,629		4,076,265		2,314,549		(10,617,443	)		3,014,487
Non-controlling interests		—		—		—		42,758		—			42,758
Total Equity		3,014,487		4,226,629		4,076,265		2,357,307		(10,617,443	)		3,057,245
Total Liabilities and Equity	$	4,228,551	$	6,818,589	$	8,428,605	$	5,382,320	$	(14,078,478	)	$	10,779,587

(1)

Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 4.875% senior notes, 5.25% senior notes and our 2015 Credit Agreement, a substantial majority of warehouse receivables funded under BofA, Fannie Mae ASAP, JP Morgan, Capital One and TD Bank lines of credit are pledged to BofA, Fannie Mae, JP Morgan, Capital One and TD Bank.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2017

(Dollars in thousands)

				CBRE			Guarantor			Nonguarantor					Consolidated
	Parent			Services			Subsidiaries			Subsidiaries		Eliminations			Total
Revenue	$	—		$	—		$	1,563,066		$	1,418,138	$	−		$	2,981,204
Costs and expenses:
Cost of services		—			—			1,070,384			1,016,695		—			2,087,079
Operating, administrative and other		(284	)		349			315,756			290,410		—			606,231
Depreciation and amortization		—			—			56,730			37,307		—			94,037
Total costs and expenses		(284	)		349			1,442,870			1,344,412		—			2,787,347
Gain on disposition of real estate		—			—			226			1,159		—			1,385
Operating income (loss)		284			(349	)		120,422			74,885		—			195,242
Equity income from unconsolidated subsidiaries		—			—			14,370			648		—			15,018
Other income		—			—			414			3,701		—			4,115
Interest income		—			29,901			1,647			764		(29,901	)		2,411
Interest expense		—			33,146			22,148			8,617		(29,901	)		34,010
Royalty and management service (income) expense		—			—			(5,802	)		5,802		—			—
Income from consolidated subsidiaries		129,422			131,641			41,989			—		(303,052	)		—
Income before provision for (benefit of) income taxes		129,706			128,047			162,496			65,579		(303,052	)		182,776
Provision for (benefit of) income taxes		109			(1,375	)		30,855			21,684		—			51,273
Net income		129,597			129,422			131,641			43,895		(303,052	)		131,503
Less: Net income attributable to non-controlling interests		—			—			—			1,906		—			1,906
Net income attributable to CBRE Group, Inc.	$	129,597		$	129,422		$	131,641		$	41,989	$	(303,052	)	$	129,597

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2016

(Dollars in thousands)

				CBRE			Guarantor			Nonguarantor					Consolidated
	Parent			Services			Subsidiaries			Subsidiaries		Eliminations			Total
Revenue	$	—		$	—		$	1,497,499		$	1,349,235	$	—		$	2,846,734
Costs and expenses:
Cost of services		—			—			1,024,563			989,050		—			2,013,613
Operating, administrative and other		1,426			7,524			342,870			291,546		—			643,366
Depreciation and amortization		—			—			54,731			32,263		—			86,994
Total costs and expenses		1,426			7,524			1,422,164			1,312,859		—			2,743,973
Gain on disposition of real estate		—			—			3,659			1,160		—			4,819
Operating (loss) income		(1,426	)		(7,524	)		78,994			37,536		—			107,580
Equity income from unconsolidated subsidiaries		—			—			56,265			1,036		—			57,301
Other (loss) income		—			—			(432	)		3,647		—			3,215
Interest income		—			32,473			917			542		(32,473	)		1,459
Interest expense		—			33,627			24,583			9,053		(32,473	)		34,790
Royalty and management service (income) expense		—			—			(7,428	)		7,428		−			—
Income from consolidated subsidiaries		83,047			88,400			3,532			—		(174,979	)		—
Income before (benefit of) provision for income taxes		81,621			79,722			122,121			26,280		(174,979	)		134,765
(Benefit of) provision for income taxes		(546	)		(3,325	)		33,721			20,275		—			50,125
Net income		82,167			83,047			88,400			6,005		(174,979	)		84,640
Less: Net income attributable to non-controlling interests		—			—			—			2,473		—			2,473
Net income attributable to CBRE Group, Inc.	$	82,167		$	83,047		$	88,400		$	3,532	$	(174,979	)	$	82,167

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2017

(Dollars in thousands)

				CBRE		Guarantor			Nonguarantor					Consolidated
	Parent			Services		Subsidiaries			Subsidiaries		Eliminations			Total
Net income	$	129,597		$	129,422	$	131,641		$	43,895	$	(303,052	)	$	131,503
Other comprehensive (loss) income:
Foreign currency translation gain		—			—		—			51,089		—			51,089
Amounts reclassified from accumulated other comprehensive loss to interest expense, net		—			1,508		—			—		—			1,508
Unrealized gains on interest rate swaps, net		—			294		—			—		—			294
Unrealized holding gains on available for sale securities, net		—			—		829			94		—			923
Other, net		(5	)		—		(1	)		—		—			(6	)
Total other comprehensive (loss) income		(5	)		1,802		828			51,183		—			53,808
Comprehensive income		129,592			131,224		132,469			95,078		(303,052	)		185,311
Less: Comprehensive income attributable to non-controlling interests		—			—		—			1,927		—			1,927
Comprehensive income attributable to CBRE Group, Inc.	$	129,592		$	131,224	$	132,469		$	93,151	$	(303,052	)	$	183,384

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2016

(Dollars in thousands)

			CBRE			Guarantor			Nonguarantor					Consolidated
	Parent		Services			Subsidiaries			Subsidiaries		Eliminations			Total
Net income	$	82,167	$	83,047		$	88,400		$	6,005	$	(174,979	)	$	84,640
Other comprehensive (loss) income:
Foreign currency translation gain		—		—			—			16,594		—			16,594
Amounts reclassified from accumulated other comprehensive loss to interest expense, net		—		1,743			—			—		—			1,743
Unrealized losses on interest rate swaps, net		—		(2,909	)		—			—		—			(2,909	)
Unrealized holding (losses) gains on available for sale securities, net		—		—			(1,089	)		160		—			(929	)
Other, net		—		—			(57	)		−		—			(57	)
Total other comprehensive (loss) income		—		(1,166	)		(1,146	)		16,754		—			14,442
Comprehensive income		82,167		81,881			87,254			22,759		(174,979	)		99,082
Less: Comprehensive income attributable to non-controlling interests		—		—			—			2,595		—			2,595
Comprehensive income attributable to CBRE Group, Inc.	$	82,167	$	81,881		$	87,254		$	20,164	$	(174,979	)	$	96,487

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2017

(Dollars in thousands)

				CBRE			Guarantor			Nonguarantor			Consolidated
	Parent			Services			Subsidiaries			Subsidiaries			Total
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	17,610		$	(6,445	)	$	(326,667	)	$	(26,528	)	$	(342,030	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—			—			(17,095	)		(6,640	)		(23,735	)
Acquisition of businesses, including net assets acquired, intangibles and goodwill		—			—			(20,578	)		(626	)		(21,204	)
Contributions to unconsolidated subsidiaries		—			—			(11,086	)		(3,481	)		(14,567	)
Distributions from unconsolidated subsidiaries		—			—			15,796			199			15,995
Proceeds from the sale of servicing rights and other assets		—			—			6,009			5,356			11,365
Decrease in restricted cash		—			—			1,999			8,464			10,463
Purchase of available for sale securities		—			—			(7,289	)		—			(7,289	)
Proceeds from the sale of available for sale securities		—			—			7,220			—			7,220
Other investing activities, net		—			—			1,275			(48	)		1,227
Net cash (used in) provided by investing activities		—			—			(23,749	)		3,224			(20,525	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility		—			266,000			—			—			266,000
Repayment of revolving credit facility		—			(146,000	)		—			—			(146,000	)
Repayment of notes payable on real estate held for investment		—			-			—			(435	)		(435	)
Proceeds from notes payable on real estate held for sale and under development		—			—			—			1,711			1,711
Repayment of notes payable on real estate held for sale and under development		—			—			—			(2,744	)		(2,744	)
Units repurchased for payment of taxes on equity awards		(1,900	)		—			—			—			(1,900	)
Non-controlling interest contributions		—			—			—			1,574			1,574
Non-controlling interest distributions		—			—			—			(744	)		(744	)
(Increase) decrease in intercompany receivables, net		(16,020	)		(121,766	)		126,547			11,239			—
Other financing activities, net		310			—			—			(2	)		308
Net cash (used in) provided by financing activities		(17,610	)		(1,766	)		126,547			10,599			117,770
Effect of currency exchange rate changes on cash and cash equivalents		—			—			—			15,490			15,490
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		—			(8,211	)		(223,869	)		2,785			(229,295	)
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD		7			16,889			264,121			481,559			762,576
CASH AND CASH EQUIVALENTS, AT END OF PERIOD	$	7		$	8,678		$	40,252		$	484,344		$	533,281
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	—		$	51,987		$	—		$	40		$	52,027
Income taxes, net	$	—		$	—		$	5,176		$	32,157		$	37,333

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2016

(Dollars in thousands)

				CBRE			Guarantor			Nonguarantor			Consolidated
	Parent			Services			Subsidiaries			Subsidiaries			Total
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	38,715		$	(14,370	)	$	(350,009	)	$	(2,976	)	$	(328,640	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—			—			(23,730	)		(9,738	)		(33,468	)
Acquisition of GWS, including net assets acquired, intangibles and goodwill		—			—			(21,900	)		—			(21,900	)
Acquisition of businesses (other than GWS), including net assets acquired, intangibles and goodwill		—			—			(1,143	)		(2,155	)		(3,298	)
Contributions to unconsolidated subsidiaries		—			—			(10,832	)		(91	)		(10,923	)
Distributions from unconsolidated subsidiaries		—			—			54,420			1,151			55,571
Proceeds from the sale of servicing rights and other assets		—			—			3,739			1,864			5,603
Decrease in restricted cash		—			—			3,254			6,517			9,771
Purchase of available for sale securities		—			—			(7,716	)		—			(7,716	)
Proceeds from the sale of available for sale securities		—			—			9,969			—			9,969
Other investing activities, net		—			—			(2,303	)		—			(2,303	)
Net cash provided by (used in) investing activities		—			—			3,758			(2,452	)		1,306
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of senior term loans		—			(5,625	)		—			—			(5,625	)
Proceeds from revolving credit facility		—			565,000			—			—			565,000
Repayment of revolving credit facility		—			(285,000	)		—			—			(285,000	)
Proceeds from notes payable on real estate held for sale and under development		—			—			—			12,427			12,427
Repayment of notes payable on real estate held for sale and under development		—			—			—			(4,102	)		(4,102	)
Units repurchased for payment of taxes on equity awards		(4,252	)		—			—			−			(4,252	)
Non-controlling interest contributions		—			—			—			27			27
Non-controlling interest distributions		—			—			—			(1,138	)		(1,138	)
Payment of financing costs		—			(4,677	)		—			(110	)		(4,787	)
(Increase) decrease in intercompany receivables, net		(34,640	)		(260,391	)		251,072			43,959			—
Other financing activities, net		177			—			—			(413	)		(236	)
Net cash (used in) provided by financing activities		(38,715	)		9,307			251,072			50,650			272,314
Effect of currency exchange rate changes on cash and cash equivalents		—			—			—			3,846			3,846
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		—			(5,063	)		(95,179	)		49,068			(51,174	)
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD		5			8,479			147,410			384,509			540,403
CASH AND CASH EQUIVALENTS, AT END OF PERIOD	$	5		$	3,416		$	52,231		$	433,577		$	489,229
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	—		$	53,924		$	—		$	281		$	54,205
Income taxes, net	$	—		$	—		$	63,648		$	19,330		$	82,978