Segments

12 Months Ended

Dec. 31, 2019

19.

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, property management, project management and valuation. Global Workplace Solutions provides a broad suite of integrated, contractually-based outsourcing services to occupiers of real estate, including facilities management, project management and transaction services. Real Estate Investments includes: (i) investment management services provided globally; (ii) development services in the U.S. and U.K. and (iii) flexible office space solutions.

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

	Year Ended December 31,
		2019			2018		2017
Revenue
Advisory Services	$	9,069,468		$	8,440,002	$	7,379,725
Global Workspace Solutions		14,164,001			12,365,362		10,791,963
Real Estate Investments		660,622			534,724		457,099
Total revenue	$	23,894,091		$	21,340,088	$	18,628,787

Depreciation and Amortization
Advisory Services	$	304,766		$	280,921	$	243,791
Global Workspace Solutions		120,975			147,222		136,127
Real Estate Investments		13,483			23,845		26,196
Total depreciation and amortization	$	439,224		$	451,988	$	406,114

Equity Income (Loss) from Unconsolidated Subsidiaries
Advisory Services	$	6,894		$	16,017	$	20,740
Global Workspace Solutions		(1,423	)		115		—
Real Estate Investments		155,454			308,532		189,467
Total equity income from unconsolidated subsidiaries	$	160,925		$	324,664	$	210,207

Adjusted EBITDA
Advisory Services	$	1,465,792		$	1,303,251	$	1,174,943
Global Workspace Solutions		424,026			345,560		334,377
Real Estate Investments		173,965			256,357		207,454
Total Adjusted EBITDA	$	2,063,783		$	1,905,168	$	1,716,774

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 expense (reversal) 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):

	Year Ended December 31,
		2019		2018			2017

Net income attributable to CBRE Group, Inc.	$	1,282,357	$	1,063,219		$	697,109
Add:
Depreciation and amortization		439,224		451,988			406,114
Intangible asset impairment		89,787		—			—
Interest expense, net of interest income		85,754		98,685			126,961
Write-off of financing costs on extinguished debt		2,608		27,982			—
Provision for income taxes		69,895		313,058			467,757
EBITDA		1,969,625		1,954,932			1,697,941
Adjustments:
Costs associated with our reorganization, including cost-savings initiatives (1)		49,565		37,925			—
Integration and other costs related to acquisitions		15,292		9,124			27,351
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue		13,101		(5,261	)		(8,518	)
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period		9,301		—			—
Costs incurred related to legal entity restructuring		6,899		—			—
Costs incurred in connection with litigation settlement		—		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		—		(100,420	)		—
Adjusted EBITDA	$	2,063,783	$	1,905,168		$	1,716,774

(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):

	Year Ended December 31,
		2019		2018		2017

Revenue
United States	$	13,852,018	$	12,264,188	$	10,954,608
United Kingdom		2,972,704		2,586,890		2,242,973
All other countries		7,069,369		6,489,010		5,431,206
Total revenue	$	23,894,091	$	21,340,088	$	18,628,787