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Segments | 9 Months Ended
--- | ---
Sep. 30, 2018
Segment Reporting [Abstract] |
Segments |
13. | 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. Summarized financial information by segment is as follows (dollars in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  |  |  |  |  | (As Adjusted) (1) |  |  |  |  |  |  | (As Adjusted) (1) |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 3,280,722 |  |  | $ | 2,939,632 |  |  | $ | 9,271,373 |  |  | $ | 8,405,761 |
EMEA |  |  | 1,331,436 |  |  |  | 1,088,699 |  |  |  | 3,828,142 |  |  |  | 3,009,350 |
Asia Pacific |  |  | 529,982 |  |  |  | 502,032 |  |  |  | 1,563,641 |  |  |  | 1,392,277 |
Global Investment Management |  |  | 93,061 |  |  |  | 92,122 |  |  |  | 315,698 |  |  |  | 274,451 |
Development Services |  |  | 25,753 |  |  |  | 16,111 |  |  |  | 67,486 |  |  |  | 47,294 |
Total revenue |  | $ | 5,260,954 |  |  | $ | 4,638,596 |  |  | $ | 15,046,340 |  |  | $ | 13,129,133 |
Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 255,813 |  |  | $ | 239,061 |  |  | $ | 740,009 |  |  | $ | 697,997 |
EMEA |  |  | 78,671 |  |  |  | 72,145 |  |  |  | 182,136 |  |  |  | 177,893 |
Asia Pacific |  |  | 41,393 |  |  |  | 43,307 |  |  |  | 118,134 |  |  |  | 111,139 |
Global Investment Management |  |  | 10,555 |  |  |  | 23,202 |  |  |  | 56,148 |  |  |  | 72,971 |
Development Services |  |  | 76,976 |  |  |  | 37,524 |  |  |  | 154,095 |  |  |  | 87,102 |
Total Adjusted EBITDA |  | $ | 463,408 |  |  | $ | 415,239 |  |  | $ | 1,250,522 |  |  | $ | 1,147,102 |
(1) | We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information.
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, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization. Amounts shown for adjusted EBITDA further remove (from EBITDA) the impact of certain cash and non-cash items related to acquisitions, costs associated with our planned reorganization, certain carried interest incentive compensation reversal to align with the timing of associated revenue and other non-recurring costs. Adjusted EBITDA is calculated as follows (dollars in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  |  |  |  |  | (As Adjusted) (1) |  |  |  |  |  |  | (As Adjusted) (1) |
Net income attributable to CBRE Group, Inc. |  | $ | 290,469 |  |  | $ | 199,088 |  |  | $ | 669,424 |  |  | $ | 537,885 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 113,484 |  |  |  | 102,591 |  |  |  | 335,048 |  |  |  | 297,014 |
Interest expense |  |  | 26,651 |  |  |  | 34,483 |  |  |  | 82,394 |  |  |  | 103,923 |
Write-off of financing costs on extinguished debt |  |  | — |  |  |  | — |  |  |  | 27,982 |  |  |  | — |
Provision for income taxes |  |  | 94,963 |  |  |  | 77,072 |  |  |  | 211,446 |  |  |  | 200,778 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 1,231 |  |  |  | 3,129 |  |  |  | 6,341 |  |  |  | 6,967 |
EBITDA |  |  | 524,336 |  |  |  | 410,105 |  |  |  | 1,319,953 |  |  |  | 1,132,633 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired |  |  | (92,624 | ) |  |  | — |  |  |  | (92,624 | ) |  |  | — |
Reorganization costs (2) |  |  | 12,768 |  |  |  | — |  |  |  | 12,768 |  |  |  | — |
Costs incurred in connection with litigation settlement |  |  | 8,868 |  |  |  | — |  |  |  | 8,868 |  |  |  | — |
Integration and other costs related to acquisitions |  |  | 6,100 |  |  |  | — |  |  |  | 6,100 |  |  |  | 27,351 |
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue |  |  | 3,960 |  |  |  | 5,134 |  |  |  | (4,543 | ) |  |  | (12,882 | )
Adjusted EBITDA |  | $ | 463,408 |  |  | $ | 415,239 |  |  | $ | 1,250,522 |  |  | $ | 1,147,102 |
(1) | We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information.
(2) | Represents severance costs related to headcount reductions in connection with our planned reorganization announced in the third quarter of 2018 that will become effective January 1, 2019.
Geographic Information Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  |  |  |  |  | (As Adjusted) (1) |  |  |  |  |  |  | (As Adjusted) (1) |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,063,616 |  |  | $ | 2,699,197 |  |  | $ | 8,646,018 |  |  | $ | 7,816,048 |
United Kingdom |  |  | 638,018 |  |  |  | 561,356 |  |  |  | 1,852,799 |  |  |  | 1,552,499 |
All other countries |  |  | 1,559,320 |  |  |  | 1,378,043 |  |  |  | 4,547,523 |  |  |  | 3,760,586 |
Total revenue |  | $ | 5,260,954 |  |  | $ | 4,638,596 |  |  | $ | 15,046,340 |  |  | $ | 13,129,133 |
(1) | We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information.
On August 17, 2018, we announced a new organization structure that will become effective on January 1, 2019. Under the new structure, we will organize our operations around, and publicly report our financial results on, three global business segments: Advisory Services, Global Workplace Solutions and Real Estate Investments. For the remainder of 2018, we will continue to report our financial results under our existing business segments.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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