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Segments | 12 Months Ended
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Dec. 31, 2021
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. Effective January 1, 2021, we realigned our organizational structure and performance measure to how our chief operating decision maker (CODM) views the company. This includes a “Corporate, other and elimination” component and a segment measurement of profit and loss referred to as segment operating profit. In addition, transaction services was fully moved under the Advisory Services segment and project management was fully moved under the Global Workplace Solutions segment. Previously transaction services and project management were split between the Global Workplace Solutions segment and the Advisory Services segment. Our Corporate segment primarily consists of corporate headquarters costs for executive officers and certain other central functions. We track our strategic non-core non-controlling equity investments in “other” which is considered an operating segment and reported together with Corporate as it does not meet the aggregation criteria for presentation as a separate reportable segment. These activities are not allocated to the other business segments. Corporate and other also includes eliminations related to inter-segment revenue. Segment operating profit (SOP) is the measure reported to the CODM for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of amount attributable to non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, 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, costs associated with workforce optimization, costs associated with our reorganization, transformation initiatives and integration and other costs related to acquisitions. This metric excludes the impact of corporate overhead as these costs are now reported under Corporate and other. We changed the definition of SOP to include net income (loss) attributable to non-controlling interest to provide a more meaningful view of the segment’s performance and related margins and to conform to the CODM’s view of the business segments. Prior period segment results for all of our reportable segments have been recast to conform to the above changes. Summarized financial information by segment is as follows (dollars in thousands):
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Revenue |  |  |  |  |
Advisory Services | $ | 9,575,759 |  |  | $ | 7,214,562 |  |  | $ | 8,654,637 |
Global Workplace Solutions | 17,098,917 |  |  | 15,808,033 |  |  | 14,601,819 |
Real Estate Investments | 1,091,716 |  |  | 831,530 |  |  | 660,622 |
Corporate, other and eliminations | (20,356) |  |  | (27,930) |  |  | (22,987) |
Total revenue | $ | 27,746,036 |  |  | $ | 23,826,195 |  |  | $ | 23,894,091 |
Depreciation and Amortization |  |  |  |  |
Advisory Services | $ | 311,397 |  |  | $ | 311,445 |  |  | $ | 275,270 |
Global Workspace Solutions | 158,757 |  |  | 134,383 |  |  | 130,427 |
Real Estate Investments | 27,111 |  |  | 27,367 |  |  | 13,483 |
Corporate, other and eliminations | 28,606 |  |  | 28,533 |  |  | 20,044 |
Total depreciation and amortization | $ | 525,871 |  |  | $ | 501,728 |  |  | $ | 439,224 |
Equity Income (Loss) from Unconsolidated Subsidiaries |  |  |  |  |
Advisory Services | $ | 24,778 |  |  | $ | 4,526 |  |  | $ | 3,110 |
Global Workspace Solutions | 1,720 |  |  | 90 |  |  | (927) |
Real Estate Investments | 555,341 |  |  | 123,548 |  |  | 155,454 |
Corporate, other and eliminations | 36,858 |  |  | (2,003) |  |  | 3,288 |
Total equity income from unconsolidated subsidiaries | $ | 618,697 |  |  | $ | 126,161 |  |  | $ | 160,925 |
Segment Operating Profit |  |  |  |  |
Advisory Services | $ | 2,063,227 |  |  | $ | 1,347,826 |  |  | $ | 1,690,959 |
Global Workplace Solutions | 708,039 |  |  | 575,299 |  |  | 475,767 |
Real Estate Investments | 520,001 |  |  | 257,700 |  |  | 209,666 |
Total reportable segment operating profit | $ | 3,291,267 |  |  | $ | 2,180,825 |  |  | $ | 2,376,392 |
Reconciliation of total reportable segment operating profit to net income is as follows (dollars in thousands):
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Net income attributable to CBRE Group, Inc. | $ | 1,836,574 |  |  | $ | 751,989 |  |  | $ | 1,282,357 |
Net income attributable to non-controlling interests | 5,341 |  |  | 3,879 |  | 9,093
Net income | 1,841,915 |  |  | 755,868 |  | 1,291,450
Adjustments to increase (decrease) net income: |  |  |  |  |
Depreciation and amortization | 525,871 |  |  | 501,728 |  |  | 439,224 |
Asset impairments | — |  |  | 88,676 |  |  | 89,787 |
Interest expense, net of interest income | 50,352 |  |  | 67,753 |  |  | 85,754 |
Write-off of financing costs on extinguished debt | — |  |  | 75,592 |  |  | 2,608 |
Provision for income taxes | 567,506 |  |  | 214,101 |  |  | 69,895 |
Costs associated with transformation initiatives (1) | — |  |  | 155,148 |  |  | — |
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue | 49,941 |  |  | (22,912) |  |  | 13,101 |
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period | (5,725) |  |  | 11,598 |  |  | 9,301 |
Costs incurred related to legal entity restructuring | — |  |  | 9,362 |  |  | 6,899 |
Integration and other costs related to acquisitions | 44,552 |  |  | 1,756 |  |  | 15,292 |
Costs associated with workforce optimization efforts (2) | — |  |  | 37,594 |  |  | — |
Costs associated with our reorganization, including cost-savings initiatives (3) | — |  |  | — |  |  | 49,565 |
Corporate and other loss, including eliminations | 216,855 |  |  | 284,561 |  |  | 303,516 |
Total reportable segment operating profit | $ | 3,291,267 |  |  | $ | 2,180,825 |  |  | $ | 2,376,392 |
_______________ (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,
| 2021 |  | 2020 |  | 2019
Revenue |  |  |  |  |
United States | $ | 15,700,279 |  |  | $ | 13,472,013 |  |  | $ | 13,852,018 |
United Kingdom | 3,617,504 |  |  | 3,083,810 |  |  | 2,972,704 |
All other countries | 8,428,253 |  |  | 7,270,372 |  |  | 7,069,369 |
Total revenue | $ | 27,746,036 |  |  | $ | 23,826,195 |  |  | $ | 23,894,091 |

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- 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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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
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