Segments

3 Months Ended

Mar. 31, 2019

14.

Segments

On August 17, 2018, we announced a new organizational structure that became effective on January 1, 2019. Under the new structure, we 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.

Advisory Services provides a comprehensive range of services globally, including property leasing, property sales, mortgage services, valuation, property management and project management. Global Workplace Solutions provides a broad suite of integrated, contractually-based services to occupiers of real estate, including facilities management, project management, transaction management and management consulting. Real Estate Investments includes: (i) investment management services provided globally; (ii) development services in the U.S. and (iii) a new service designed to help institutional property owners meet the demand for flexible office space solutions.

Summarized financial information by segment is as follows (dollars in thousands):

	Three Months Ended March 31,
		2019	2018 (1)
Revenue
Advisory Services	$	1,834,402	$	1,699,434
Global Workplace Solutions		3,165,915		2,827,503
Real Estate Investments		135,193		147,015
Total revenue	$	5,135,510	$	4,673,952

Adjusted EBITDA
Advisory Services	$	263,850	$	215,432
Global Workplace Solutions		99,679		82,735
Real Estate Investments		86,503		49,640
Total Adjusted EBITDA	$	450,032	$	347,807

(1)	Results for 2018 have been presented in conformity with the new structure.

Adjusted EBITDA is the measure reported to the chief operating decision maker (CODM) 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 and intangible asset impairments. 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):

	Three Months Ended March 31,
		2019		2018
Net income attributable to CBRE Group, Inc.	$	164,409	$	150,288
Add:
Depreciation and amortization		105,823		108,165
Intangible asset impairment		89,037		—
Interest expense		22,726		28,858
Write-off of financing costs on extinguished debt		2,608		27,982
Provision for income taxes		43,878		46,164
Less:
Interest income		1,534		3,621
EBITDA		426,947		357,836
Adjustments:
Costs associated with our reorganization, including cost-savings initiatives (1)		15,749		—
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue		7,336		(10,029	)
Adjusted EBITDA	$	450,032	$	347,807

(1)	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.

Our CODM is not provided with total asset information by segment and accordingly, does not measure or allocate total assets on a segment basis. As a result, we have not disclosed any asset information by segment.

Geographic Information

Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands):

	Three Months Ended March 31,
		2019		2018
Revenue
United States	$	3,036,707	$	2,674,217
United Kingdom		588,581		580,516
All other countries		1,510,222		1,419,219
Total revenue	$	5,135,510	$	4,673,952