FacilitySource Acquisition (Tables)

9 Months Ended

Sep. 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)

(47,118

)

Excess purchase price over estimated fair value of net assets

acquired

218,347

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		54,730
Other intangible assets		64,400
Other assets		114
Total assets acquired		160,250
Liabilities Assumed:
Accounts payable and accrued expenses		48,278
Compensation and employee benefits payable		1,472
Accrued bonus and profit sharing		5,036
Line of credit and term loan		26,295
Deferred tax liability		30,923
Other liabilities		1,128
Total liabilities assumed		113,132
Estimated Fair Value of Net Assets Acquired	$	47,118

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 September 30, 2018
Asset Class	Weighted Average Amortization/ Depreciation Period	Amount Assigned at Acquisition Date		Accumulated Amortization and Depreciation		Net Carrying Value
Intangibles:
Trade name	20 years	$	38,950	$	568	$	38,382
Customer relationships	6.67 years		25,450		780		24,670
Total amortizable intangible assets acquired	14.7 years	$	64,400	$	1,348	$	63,052
Property and Equipment:
Computer software	10 years	$	51,850	$	1,512	$	50,338

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				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Depreciation expense	$	—	$	1,090	$	2,377	$	3,269
Amortization expense		—		1,441		2,976		4,324
Interest expense		—		1,525		2,769		4,574

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				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Revenue	$	5,260,954	$	4,675,977	$	15,143,266	$	13,421,277
Operating income		194,155		231,975		623,771		651,553
Net income attributable to CBRE Group, Inc.		293,726		193,666		663,247		521,621
Basic income per share:
Net income per share attributable to CBRE Group, Inc.	$	0.87	$	0.57	$	1.96	$	1.55
Weighted average shares outstanding for basic income per share		339,477,316		337,948,324		339,151,807		337,280,914
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.	$	0.85	$	0.57	$	1.93	$	1.53
Weighted average shares outstanding for diluted income per share		343,733,947		341,186,431		343,267,240		340,502,432