XML 44 R31.htm IDEA: XBRL DOCUMENT
v3.20.2

Segments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2020
Segment Reporting [Abstract] |
Summarized Financial Information by Segment | Summarized financial information by segment is as follows (dollars in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  |  | 2020 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2019 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Advisory Services |  | $ | 1,754,165 |  |  | $ | 2,240,712 |  |  | $ | 5,238,618 |  |  | $ | 6,254,072 |
Global Workplace Solutions |  |  | 3,721,365 |  |  |  | 3,555,176 |  |  |  | 11,134,383 |  |  |  | 10,106,543 |
Real Estate Investments |  |  | 169,612 |  |  |  | 129,213 |  |  |  | 542,693 |  |  |  | 414,069 |
Total revenue |  | $ | 5,645,142 |  |  | $ | 5,925,101 |  |  | $ | 16,915,694 |  |  | $ | 16,774,684 |
Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Advisory Services |  | $ | 236,369 |  |  | $ | 345,482 |  |  | $ | 662,129 |  |  | $ | 942,860 |
Global Workplace Solutions |  |  | 140,523 |  |  |  | 95,209 |  |  |  | 355,768 |  |  |  | 298,948 |
Real Estate Investments |  |  | 64,872 |  |  |  | 13,939 |  |  |  | 121,522 |  |  |  | 131,346 |
Total Adjusted EBITDA |  | $ | 441,764 |  |  | $ | 454,630 |  |  | $ | 1,139,419 |  |  | $ | 1,373,154 |
Adjusted EBITDA Calculation by Segment | Adjusted EBITDA is calculated as follows (dollars in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  |  | 2020 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2019 |
Net income attributable to CBRE Group, Inc. |  | $ | 184,132 |  |  | $ | 256,599 |  |  | $ | 438,224 |  |  | $ | 644,739 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 127,725 |  |  |  | 111,560 |  |  |  | 357,903 |  |  |  | 323,862 |
Asset impairments |  |  | — |  |  |  | — |  |  |  | 75,171 |  |  |  | 89,037 |
Interest expense, net of interest income |  |  | 17,829 |  |  |  | 21,846 |  |  |  | 51,795 |  |  |  | 67,638 |
Write-off of financing costs on extinguished debt |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,608 |
Provision for income taxes |  |  | 49,062 |  |  |  | 63,468 |  |  |  | 119,047 |  |  |  | 169,867 |
EBITDA |  |  | 378,748 |  |  |  | 453,473 |  |  |  | 1,042,140 |  |  |  | 1,297,751 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Costs associated with transformation initiatives (1) |  |  | 55,374 |  |  |  | — |  |  |  | 55,374 |  |  |  | — |
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue |  |  | 3,767 |  |  |  | (3,360 | ) |  |  | (11,517 | ) |  |  | 12,284 |
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period |  |  | 2,289 |  |  |  | — |  |  |  | 9,289 |  |  |  | — |
Costs incurred related to legal entity restructuring |  |  | 1,061 |  |  |  | — |  |  |  | 4,995 |  |  |  | — |
Integration and other costs related to acquisitions |  |  | 525 |  |  |  | 4,517 |  |  |  | 1,544 |  |  |  | 13,554 |
Costs associated with workforce optimization efforts (2) |  |  | — |  |  |  | — |  |  |  | 37,594 |  |  |  | — |
Costs associated with our reorganization, including cost-savings initiatives (3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 49,565 |
Adjusted EBITDA |  | $ | 441,764 |  |  | $ | 454,630 |  |  | $ | 1,139,419 |  |  | $ | 1,373,154 |
(1) | Commencing during the quarter ended September 30, 2020, management began the implementation of certain transformation initiatives to enable the company to reduce costs, streamline operations and support future growth. The majority of expenses incurred were cash in nature and primarily related to employee separation benefits, lease termination costs and professional fees. See Note 15 for further discussion.
(2) | Primarily represents costs incurred related to workforce optimization initiated and executed in the second quarter of 2020 as part of management’s cost containment efforts in response to the COVID-19 pandemic. The charges are cash expenditures primarily for severance costs incurred related to this effort. Of the total costs, $7.4 million was included within the “Cost of revenue” line item and $30.2 million was included in the “Operating, administrative, and other” line item in the accompanying consolidated statements of operations for the nine months ended September 30, 2020.
(3) | 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.
Summary of 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, |
|  |  | 2020 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2019 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,162,235 |  |  | $ | 3,442,570 |  |  | $ | 9,632,592 |  |  | $ | 9,851,477 |
United Kingdom |  |  | 736,927 |  |  |  | 758,084 |  |  |  | 2,188,822 |  |  |  | 2,003,671 |
All other countries |  |  | 1,745,980 |  |  |  | 1,724,447 |  |  |  | 5,094,280 |  |  |  | 4,919,536 |
Total revenue |  | $ | 5,645,142 |  |  | $ | 5,925,101 |  |  | $ | 16,915,694 |  |  | $ | 16,774,684 |

X
- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfOperatingProfitLossFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1) -URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 + Details
Name: | us-gaap_ScheduleOfRevenueFromExternalCustomersAttributedToForeignCountriesByGeographicAreaTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration