Segments

9 Months Ended

Sep. 30, 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				Nine Months Ended
	September 30,				September 30,
		2019	2018 (1)			2019	2018 (1)
Revenue
Advisory Services	$	2,240,712	$	2,059,359	$	6,254,072	$	5,717,899
Global Workplace Solutions		3,555,176		3,082,781		10,106,543		8,945,257
Real Estate Investments		129,213		118,814		414,069		383,184
Total revenue	$	5,925,101	$	5,260,954	$	16,774,684	$	15,046,340

Adjusted EBITDA
Advisory Services	$	345,482	$	295,902	$	942,860	$	801,646
Global Workplace Solutions		95,209		82,810		298,948		244,626
Real Estate Investments		13,939		84,696		131,346		204,250
Total Adjusted EBITDA	$	454,630	$	463,408	$	1,373,154	$	1,250,522

(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, certain carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, costs associated with our reorganization, including cost-savings initiatives, and other non-recurring costs.

Adjusted EBITDA is calculated as follows (dollars in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2019			2018			2019		2018
Net income attributable to CBRE Group, Inc.	$	256,599		$	290,469		$	644,739	$	669,424
Add:
Depreciation and amortization		111,560			113,484			323,862		335,048
Intangible asset impairment		—			—			89,037		—
Interest expense, net of interest income		21,846			25,420			67,638		76,053
Write-off of financing costs on extinguished debt		—			—			2,608		27,982
Provision for income taxes		63,468			94,963			169,867		211,446
EBITDA		453,473			524,336			1,297,751		1,319,953
Adjustments:
Integration and other costs related to acquisitions		4,517			6,100			13,554		6,100
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue		(3,360	)		3,960			12,284		(4,543	)
Costs associated with our reorganization, including cost-savings initiatives (1)		—			12,768			49,565		12,768
Costs incurred in connection with litigation settlement		—			8,868			—		8,868
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		—			(92,624	)		—		(92,624	)
Adjusted EBITDA	$	454,630		$	463,408		$	1,373,154	$	1,250,522

(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				Nine Months Ended
	September 30,				September 30,
		2019		2018		2019		2018
Revenue
United States	$	3,442,570	$	3,063,616	$	9,851,477	$	8,646,018
United Kingdom		758,084		638,018		2,003,671		1,852,799
All other countries		1,724,447		1,559,320		4,919,536		4,547,523
Total revenue	$	5,925,101	$	5,260,954	$	16,774,684	$	15,046,340