XML 43 R28.htm IDEA: XBRL DOCUMENT
v3.20.4

Segments | 12 Months Ended
--- | ---
Dec. 31, 2020
Segment Reporting [Abstract] |
Segments | Segments 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. Summarized financial information by segment is as follows (dollars in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Revenue |  |  |  |  |
Advisory Services | $ | 7,698,992 |  |  | $ | 9,069,468 |  |  | $ | 8,440,002 |
Global Workspace Solutions | 15,295,673 |  |  | 14,164,001 |  |  | 12,365,362 |
Real Estate Investments | 831,530 |  |  | 660,622 |  |  | 534,724 |
Total revenue | $ | 23,826,195 |  |  | $ | 23,894,091 |  |  | $ | 21,340,088 |
Depreciation and Amortization |  |  |  |  |
Advisory Services | $ | 348,669 |  |  | $ | 304,766 |  |  | $ | 280,921 |
Global Workspace Solutions | 125,692 |  |  | 120,975 |  |  | 147,222 |
Real Estate Investments | 27,367 |  |  | 13,483 |  |  | 23,845 |
Total depreciation and amortization | $ | 501,728 |  |  | $ | 439,224 |  |  | $ | 451,988 |
Equity Income (Loss) from Unconsolidated Subsidiaries |  |  |  |  |
Advisory Services | $ | 2,245 |  |  | $ | 6,894 |  |  | $ | 16,017 |
Global Workspace Solutions | 368 |  |  | (1,423) |  |  | 115 |
Real Estate Investments | 123,548 |  |  | 155,454 |  |  | 308,532 |
Total equity income from unconsolidated subsidiaries | $ | 126,161 |  |  | $ | 160,925 |  |  | $ | 324,664 |
Adjusted EBITDA |  |  |  |  |
Advisory Services | $ | 1,143,889 |  |  | $ | 1,465,792 |  |  | $ | 1,303,251 |
Global Workspace Solutions | 516,814 |  |  | 424,026 |  |  | 345,560 |
Real Estate Investments | 231,682 |  |  | 173,965 |  |  | 256,357 |
Total Adjusted EBITDA | $ | 1,892,385 |  |  | $ | 2,063,783 |  |  | $ | 1,905,168 |
Adjusted EBITDA is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to and assessing performance of each segment. EBITDA represents earnings before depreciation and amortization, asset impairments, interest expense, net of interest income, write-off of financing costs on extinguished debt, and provision for income taxes. Amounts shown for adjusted EBITDA further remove (from EBITDA) the impact of costs associated with transformation initiatives, costs associated with workforce optimization efforts, fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, costs associated with our reorganization, including cost-savings initiatives, costs incurred in connection with litigation settlement, and a 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. Adjusted EBITDA is calculated as follows (dollars in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Net income attributable to CBRE Group, Inc. | $ | 751,989 |  |  | $ | 1,282,357 |  |  | $ | 1,063,219 |
Add: |  |  |  |  |
Depreciation and amortization | 501,728 |  |  | 439,224 |  |  | 451,988 |
Asset impairments | 88,676 |  |  | 89,787 |  |  | — |
Interest expense, net of interest income | 67,753 |  |  | 85,754 |  |  | 98,685 |
Write-off of financing costs on extinguished debt | 75,592 |  |  | 2,608 |  |  | 27,982 |
Provision for income taxes | 214,101 |  |  | 69,895 |  |  | 313,058 |
EBITDA | 1,699,839 |  |  | 1,969,625 |  |  | 1,954,932 |
Adjustments: |  |  |  |  |
Costs associated with transformation initiatives (1) | 155,148 |  |  | — |  |  | — |
Costs associated with workforce optimization efforts (2) | 37,594 |  |  | — |  |  | — |
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in the period | 11,598 |  |  | 9,301 |  |  | — |
Costs incurred related to legal entity restructuring | 9,362 |  |  | 6,899 |  |  | — |
Integration and other costs related to acquisitions | 1,756 |  |  | 15,292 |  |  | 9,124 |
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue | (22,912) |  |  | 13,101 |  |  | (5,261) |
Costs associated with our reorganization, including cost-savings initiatives (3) | — |  |  | 49,565 |  |  | 37,925 |
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 | $ | 1,892,385 |  |  | $ | 2,063,783 |  |  | $ | 1,905,168 |
_______________ (1)During 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 21 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 year ended December 31, 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. 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,
| 2020 |  | 2019 |  | 2018
Revenue |  |  |  |  |
United States | $ | 13,472,013 |  |  | $ | 13,852,018 |  |  | $ | 12,264,188 |
United Kingdom | 3,083,810 |  |  | 2,972,704 |  |  | 2,586,890 |
All other countries | 7,270,372 |  |  | 7,069,369 |  |  | 6,489,010 |
Total revenue | $ | 23,826,195 |  |  | $ | 23,894,091 |  |  | $ | 21,340,088 |

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -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 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration