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Segments | 6 Months Ended
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Jun. 30, 2017
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 |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2017 |  |  | 2016 (1) |  |  | 2017 |  |  | 2016 (1) |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 1,856,887 |  |  | $ | 1,780,389 |  |  | $ | 3,549,533 |  |  | $ | 3,368,264 |
EMEA |  |  | 954,734 |  |  |  | 953,918 |  |  |  | 1,798,922 |  |  |  | 1,794,265 |
Asia Pacific |  |  | 420,628 |  |  |  | 359,602 |  |  |  | 761,773 |  |  |  | 670,961 |
Global Investment Management |  |  | 92,763 |  |  |  | 95,737 |  |  |  | 182,329 |  |  |  | 186,117 |
Development Services |  |  | 17,203 |  |  |  | 17,891 |  |  |  | 30,862 |  |  |  | 34,664 |
Total revenue |  | $ | 3,342,215 |  |  | $ | 3,207,537 |  |  | $ | 6,323,419 |  |  | $ | 6,054,271 |
Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 230,409 |  |  | $ | 227,411 |  |  | $ | 450,809 |  |  | $ | 414,625 |
EMEA |  |  | 68,577 |  |  |  | 59,854 |  |  |  | 102,441 |  |  |  | 87,665 |
Asia Pacific |  |  | 43,200 |  |  |  | 28,235 |  |  |  | 63,481 |  |  |  | 41,103 |
Global Investment Management |  |  | 23,910 |  |  |  | 26,426 |  |  |  | 49,769 |  |  |  | 49,341 |
Development Services |  |  | 46,453 |  |  |  | 18,525 |  |  |  | 49,257 |  |  |  | 50,400 |
Total Adjusted EBITDA |  | $ | 412,549 |  |  | $ | 360,451 |  |  | $ | 715,757 |  |  | $ | 643,134 |
(1) | In 2017, we changed the presentation of the operating results of one of our emerging businesses among our regional services reporting segments. Prior year amounts have been reclassified to conform with the current-year presentation. This change had no impact on our consolidated results.
Adjusted EBITDA is the measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. EBITDA represents earnings before net interest expense, income taxes, depreciation and amortization. Amounts shown for adjusted EBITDA further remove (from EBITDA) the impact of certain cash and non-cash charges related to acquisitions, cost-elimination expenses and certain carried interest incentive compensation reversal to align with the timing of associated revenue. Adjusted EBITDA is calculated as follows (dollars in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2017 |  |  | 2016 (1) |  |  | 2017 |  |  | 2016 (1) |
Net income attributable to CBRE Group, Inc. |  | $ | 197,165 |  |  | $ | 121,668 |  |  | $ | 326,762 |  |  | $ | 203,835 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 100,386 |  |  |  | 90,268 |  |  |  | 194,423 |  |  |  | 177,262 |
Interest expense |  |  | 35,430 |  |  |  | 36,987 |  |  |  | 69,440 |  |  |  | 71,777 |
Provision for income taxes |  |  | 68,362 |  |  |  | 64,039 |  |  |  | 119,635 |  |  |  | 114,164 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 1,427 |  |  |  | 3,066 |  |  |  | 3,838 |  |  |  | 4,525 |
EBITDA |  |  | 399,916 |  |  |  | 309,896 |  |  |  | 706,422 |  |  |  | 562,513 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Integration and other costs related to acquisitions |  |  | 15,408 |  |  |  | 27,751 |  |  |  | 27,351 |  |  |  | 44,924 |
Cost-elimination expenses (2) |  |  | - |  |  |  | 27,176 |  |  |  | - |  |  |  | 39,579 |
Carried interest incentive compensation reversal to align with the timing of associated revenue |  |  | (2,775 | ) |  |  | (4,372 | ) |  |  | (18,016 | ) |  |  | (3,882 | )
Adjusted EBITDA |  | $ | 412,549 |  |  | $ | 360,451 |  |  | $ | 715,757 |  |  | $ | 643,134 |
(1) | In 2017, we changed the presentation of the operating results of one of our emerging businesses among our regional services reporting segments. Prior year amounts have been reclassified to conform with the current-year presentation. This change had no impact on our consolidated results.
(2) | Represents cost-elimination expenses relating to a program initiated in the fourth quarter of 2015 and completed in the third quarter of 2016 (our cost-elimination project) to reduce the company’s global cost structure after several years of significant revenue and related cost growth. Cost-elimination expenses incurred during the three and six months ended June 30, 2016 consisted of $25.1 million and $36.9 million, respectively, of severance costs related to headcount reductions in connection with the program and $2.1 million and $2.7 million, respectively, of third-party contract termination costs.

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- 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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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