Segments (Tables)

12 Months Ended

Dec. 31, 2018

Summarized Financial Information by Segment

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 Calculation by Segment

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.

Schedule of Capital Expenditures by Segment

	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

Schedule of Identifiable Assets by Segment

	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.

Schedule of Investments in Unconsolidated Subsidiaries by Segment

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

Summary of 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