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Segments | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segments |
18. | Segments
We report our operations through the following segments: (1) Americas, (2) EMEA, (3) Asia Pacific, (4) Global Investment Management; and (5) Development Services. Summarized financial information by segment is as follows (dollars in thousands):
|  | Year Ended December 31, |
|  |  | 2018 |  |  |  | 2017 |  |  |  | 2016 |
|  |  |  |  |  | (As Adjusted) (1) |  |  | (As Adjusted) (1) (2) |
Revenue |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 13,131,906 |  |  | $ | 11,791,377 |  |  | $ | 11,069,965 |
EMEA |  |  | 5,465,923 |  |  |  | 4,396,825 |  |  |  | 4,128,906 |
Asia Pacific |  |  | 2,207,535 |  |  |  | 1,983,486 |  |  |  | 1,729,528 |
Global Investment Management |  |  | 434,405 |  |  |  | 377,644 |  |  |  | 369,800 |
Development Services |  |  | 100,319 |  |  |  | 79,455 |  |  |  | 70,909 |
Total revenue |  | $ | 21,340,088 |  |  | $ | 18,628,787 |  |  | $ | 17,369,108 |
Depreciation and Amortization |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 327,556 |  |  | $ | 289,338 |  |  | $ | 254,118 |
EMEA |  |  | 80,290 |  |  |  | 72,322 |  |  |  | 66,619 |
Asia Pacific |  |  | 20,297 |  |  |  | 18,258 |  |  |  | 17,810 |
Global Investment Management |  |  | 23,017 |  |  |  | 24,123 |  |  |  | 25,911 |
Development Services |  |  | 828 |  |  |  | 2,073 |  |  |  | 2,469 |
Total depreciation and amortization |  | $ | 451,988 |  |  | $ | 406,114 |  |  | $ | 366,927 |
|  | Year Ended December 31, |
|  |  | 2018 |  |  |  | 2017 |  |  |  | 2016 |
|  |  |  |  |  | (As Adjusted) (1) |  |  | (As Adjusted) (1) (2) |
Equity Income from Unconsolidated Subsidiaries |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 14,177 |  |  | $ | 18,789 |  |  | $ | 17,892 |
EMEA |  |  | 1,523 |  |  |  | 1,553 |  |  |  | 1,817 |
Asia Pacific |  |  | 433 |  |  |  | 397 |  |  |  | 223 |
Global Investment Management |  |  | 6,131 |  |  |  | 7,923 |  |  |  | 7,243 |
Development Services |  |  | 302,400 |  |  |  | 181,545 |  |  |  | 170,176 |
Total equity income from unconsolidated subsidiaries |  | $ | 324,664 |  |  | $ | 210,207 |  |  | $ | 197,351 |
Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 1,111,014 |  |  | $ | 1,011,643 |  |  | $ | 950,573 |
EMEA |  |  | 329,522 |  |  |  | 309,233 |  |  |  | 272,894 |
Asia Pacific |  |  | 197,684 |  |  |  | 180,043 |  |  |  | 142,299 |
Global Investment Management |  |  | 78,469 |  |  |  | 94,373 |  |  |  | 83,150 |
Development Services |  |  | 188,479 |  |  |  | 121,482 |  |  |  | 113,431 |
Total Adjusted EBITDA |  | $ | 1,905,168 |  |  | $ | 1,716,774 |  |  | $ | 1,562,347 |
(1) | We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 and 2016 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information
(2) | In 2017, we changed the presentation of the operating results of one of our emerging businesses among our regional services reporting segments. 2016 amounts were reclassified to conform with the 2017 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, 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 reorganization, including cost-savings initiatives, 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):
|  | Year Ended December 31, |
|  |  | 2018 |  |  |  | 2017 |  |  |  | 2016 |
|  |  |  |  |  | (As Adjusted) (1) |  |  | (As Adjusted) (1) |
Net income attributable to CBRE Group, Inc. |  | $ | 1,063,219 |  |  | $ | 697,109 |  |  | $ | 573,079 |
Add: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 451,988 |  |  |  | 406,114 |  |  |  | 366,927 |
Interest expense |  |  | 107,270 |  |  |  | 136,814 |  |  |  | 144,851 |
Write-off of financing costs on extinguished debt |  |  | 27,982 |  |  |  | — |  |  |  | — |
Provision for income taxes |  |  | 313,058 |  |  |  | 467,757 |  |  |  | 296,900 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 8,585 |  |  |  | 9,853 |  |  |  | 8,051 |
EBITDA |  |  | 1,954,932 |  |  |  | 1,697,941 |  |  |  | 1,373,706 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |
Costs associated with our reorganization, including cost-savings initiatives (2) |  |  | 37,925 |  |  |  | — |  |  |  | — |
Integration and other costs related to acquisitions |  |  | 9,124 |  |  |  | 27,351 |  |  |  | 125,743 |
Costs incurred in connection with litigation settlement |  |  | 8,868 |  |  |  | — |  |  |  | — |
Carried interest incentive compensation reversal to align with the timing of associated revenue |  |  | (5,261 | ) |  |  | (8,518 | ) |  |  | (15,558 | )
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 |  |  | (100,420 | ) |  |  | — |  |  |  | — |
Cost-elimination expenses (3) |  |  | — |  |  |  | — |  |  |  | 78,456 |
Adjusted EBITDA |  | $ | 1,905,168 |  |  | $ | 1,716,774 |  |  | $ | 1,562,347 |
(1) | We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 and 2016 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information.
(2) | Primarily represents severance costs related to headcount reductions in connection with our reorganization announced in the third quarter of 2018 that became effective January 1, 2019.
(3) | 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 year ended December 31, 2016 consisted of $73.6 million of severance costs related to headcount reductions in connection with the program and $4.9 million of third-party contract termination costs. The total amount for each period does have a cash impact.
|  | Year Ended December 31, |
|  |  | 2018 |  |  |  | 2017 |  |  |  | 2016 |
Capital Expenditures |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 131,055 |  |  | $ | 127,135 |  |  | $ | 134,046 |
EMEA |  |  | 63,947 |  |  |  | 28,716 |  |  |  | 35,452 |
Asia Pacific |  |  | 17,122 |  |  |  | 19,360 |  |  |  | 19,179 |
Global Investment Management |  |  | 15,348 |  |  |  | 2,776 |  |  |  | 2,273 |
Development Services |  |  | 331 |  |  |  | 55 |  |  |  | 255 |
Total capital expenditures |  | $ | 227,803 |  |  | $ | 178,042 |  |  | $ | 191,205 |
|  | December 31, |
|  |  | 2018 |  |  |  | 2017 |
|  |  |  |  |  | (As Adjusted) (1) |
Identifiable Assets |  |  |  |  |  |  |  |
Americas |  | $ | 7,432,532 |  |  | $ | 5,808,332 |
EMEA |  |  | 3,168,050 |  |  |  | 3,013,586 |
Asia Pacific |  |  | 978,331 |  |  |  | 894,066 |
Global Investment Management |  |  | 1,018,999 |  |  |  | 1,075,691 |
Development Services |  |  | 166,864 |  |  |  | 176,971 |
Corporate |  |  | 692,017 |  |  |  | 749,750 |
Total identifiable assets |  | $ | 13,456,793 |  |  | $ | 11,718,396 |
(1) | We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 and 2016 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information.
Identifiable assets by segment are those assets used in our operations in each segment. Corporate identifiable assets primarily include cash and cash equivalents available for general corporate use and net deferred tax assets.
|  | December 31, |
|  |  | 2018 |  |  |  | 2017 |
Investments in Unconsolidated Subsidiaries |  |  |  |  |  |  |  |
Americas |  | $ | 41,446 |  |  | $ | 39,105 |
EMEA |  |  | 864 |  |  |  | 852 |
Asia Pacific |  |  | 6,845 |  |  |  | 6,581 |
Global Investment Management |  |  | 77,926 |  |  |  | 83,430 |
Development Services |  |  | 89,093 |  |  |  | 108,033 |
Total investments in unconsolidated subsidiaries |  | $ | 216,174 |  |  | $ | 238,001 |
Geographic Information Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands):
|  | Year Ended December 31, |
|  |  | 2018 |  |  |  | 2017 |  |  |  | 2016 |
|  |  |  |  |  | (As Adjusted) (1) |  |  | (As Adjusted) (1) |
Revenue |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 12,264,188 |  |  | $ | 10,954,608 |  |  | $ | 10,434,782 |
United Kingdom |  |  | 2,586,890 |  |  |  | 2,242,973 |  |  |  | 2,150,428 |
All other countries |  |  | 6,489,010 |  |  |  | 5,431,206 |  |  |  | 4,783,898 |
Total revenue |  | $ | 21,340,088 |  |  | $ | 18,628,787 |  |  | $ | 17,369,108 |
(1) | We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 and 2016 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information.
The long-lived assets in the table below are comprised of net property and equipment (dollars in thousands).
|  | December 31, |
|  |  | 2018 |  |  |  | 2017 |
Property and Equipment, Net |  |  |  |  |  |  |  |
United States |  | $ | 512,110 |  |  | $ | 432,102 |
United Kingdom |  |  | 71,119 |  |  |  | 61,335 |
All other countries |  |  | 138,463 |  |  |  | 124,302 |
Total property and equipment, net |  | $ | 721,692 |  |  | $ | 617,739 |
On August 17, 2018, we announced a new organization structure that became 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: (1) Advisory Services, (2) Global Workplace Solutions and (3) Real Estate Investments. For 2018, we are reporting our financial results under our business segments as they existed throughout the year.

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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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