FacilitySource Acquisition (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Excess Purchase Price Over Estimated Fair Value of Net Assets Acquired

The following represents a summary of the excess purchase price over the estimated fair value of net assets acquired (dollars in thousands):

Estimated purchase price

265,465

Less: Estimated fair value of net assets acquired (see table below)

(69,719

)

Excess purchase price over estimated fair value of net assets

acquired

195,746

Summary of Aggregate Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the aggregate estimated fair values of the assets acquired and the liabilities assumed in the FacilitySource Acquisition (dollars in thousands):

Assets Acquired:
Cash and cash equivalents	$	2,627
Receivables, net		37,902
Prepaid expenses		477
Property and equipment		60,530
Other intangible assets		89,000
Other assets		114
Total assets acquired		190,650
Liabilities Assumed:
Accounts payable and accrued expenses		47,663
Compensation and employee benefits payable		1,800
Accrued bonus and profit sharing		5,036
Line of credit and term loan		26,295
Deferred tax liability		39,009
Other liabilities		1,128
Total liabilities assumed		120,931
Estimated Fair Value of Net Assets Acquired	$	69,719

Summary of Preliminary Estimate of Amortizable Intangible Assets and Depreciable Computer Software Acquired

The following is a summary of the preliminary estimate of the amortizable intangible assets and depreciable computer software acquired in connection with the FacilitySource Acquisition (dollars in thousands):

				At June 30, 2018
Asset Class	Weighted Average Amortization/ Depreciation Period	Amount Assigned at Acquisition Date		Accumulated Amortization and Depreciation		Net Carrying Value
Intangibles:
Trade names	20 years	$	50,400	$	105	$	50,295
Customer relationships	6.67 years		38,600		241		38,359
Total amortizable intangible assets acquired	14.22 years	$	89,000	$	346	$	88,654
Property and Equipment:
Computer software	10 years	$	57,650	$	240	$	57,410

Certain Adjustments to Unaudited Pro Forma Results

They include certain adjustments for increased depreciation and amortization expense related to acquired computer software and intangible assets as well as increased interest expense associated with borrowings under our revolving credit facility used to fund the acquisition, as follows (dollars in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Depreciation expense	$	1,201	$	1,235	$	2,642	$	2,469
Amortization expense		1,731		2,078		3,809		4,155
Interest expense		1,224		1,525		2,748		3,049

Summary of Pro Forma Results Prepared for Comparative Purposes

These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the FacilitySource Acquisition occurred on January 1, 2017 and may not be indicative of future operating results (dollars in thousands, except share data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Revenue	$	5,141,339	$	4,476,952	$	9,852,160	$	8,565,300
Operating income		218,988		220,565		424,689		418,015
Net income attributable to CBRE Group, Inc.		222,941		195,874		366,083		326,993
Basic income per share:
Net income per share attributable to CBRE Group, Inc.	$	0.66	$	0.58	$	1.08	$	0.97
Weighted average shares outstanding for basic income per share		339,081,556		336,975,149		338,986,354		336,941,681
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.	$	0.65	$	0.57	$	1.07	$	0.96
Weighted average shares outstanding for diluted income per share		343,471,513		340,882,603		343,031,189		340,214,246