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FacilitySource Acquisition (Tables)

12 Months Ended

Dec. 31, 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

266,465

Add: Estimated fair value of net liabilities assumed (see table below)

8,632

Excess purchase price over estimated fair value of net assets

acquired

275,097

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		41,680
Other intangible assets		48,200
Other assets		114
Total assets acquired		131,000
Liabilities Assumed:
Accounts payable and accrued expenses		48,273
Accrued bonus and profit sharing		5,036
Compensation and employee benefits payable		1,472
Line of credit and term loan		26,295
Deferred tax liabilities, net		57,428
Other liabilities		1,128
Total liabilities assumed		139,632
Estimated Fair Value of Net Liabilities Assumed	$	(8,632	)

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):

				As of December 31, 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	$	37,200	$	1,007	$	36,193
Customer relationships	6.67 years		11,000		894		10,106
Total amortizable intangible assets acquired	16.96 years	$	48,200	$	1,901	$	46,299
Property and Equipment
Computer software	10 years	$	38,800	$	2,102	$	36,698

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):

	Year Ended December 31,
		2018		2017		2016
Depreciation expense	$	1,253	$	3,054	$	3,298
Amortization expense		1,019		2,190		2,190
Interest expense		2,748		6,098		6,098

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, 2016 and may not be indicative of future operating results (dollars in thousands, except share data):

	Year Ended December 31,
		2018		2017		2016
Revenue	$	21,437,014	$	18,778,312	$	17,472,602
Operating income		1,089,738		1,058,834		794,495
Net income attributable to CBRE Group, Inc.		1,061,916		680,392		555,332
Basic income per share:
Net income per share attributable to CBRE Group, Inc.	$	3.13	$	2.02	$	1.66
Weighted average shares outstanding for basic income per share		339,321,056		337,658,017		335,414,831
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.	$	3.09	$	2.00	$	1.64
Weighted average shares outstanding for diluted income per share		343,122,741		340,783,556		338,424,563