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Segments
 12 Months Ended
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,
202120202019
Revenue
Advisory Services$9,575,759 $7,214,562 $8,654,637 
Global Workplace Solutions17,098,917 15,808,033 14,601,819 
Real Estate Investments1,091,716 831,530 660,622 
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 Solutions158,757 134,383 130,427 
Real Estate Investments27,111 27,367 13,483 
Corporate, other and eliminations28,606 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 Solutions1,720 90 (927)
Real Estate Investments555,341 123,548 155,454 
Corporate, other and eliminations36,858 (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 Solutions708,039 575,299 475,767 
Real Estate Investments520,001 257,700 209,666 
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,
202120202019
Net income attributable to CBRE Group, Inc.$1,836,574 $751,989 $1,282,357 
Net income attributable to non-controlling interests5,341 3,8799,093
Net income1,841,915 755,8681,291,450
Adjustments to increase (decrease) net income:
Depreciation and amortization525,871 501,728 439,224 
Asset impairments— 88,676 89,787 
Interest expense, net of interest income50,352 67,753 85,754 
Write-off of financing costs on extinguished debt— 75,592 2,608 
Provision for income taxes567,506 214,101 69,895 
Costs associated with transformation initiatives (1)
— 155,148 — 
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue49,941 (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 acquisitions44,552 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 eliminations216,855 284,561 303,516 
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,
202120202019
Revenue
United States$15,700,279 $13,472,013 $13,852,018 
United Kingdom3,617,504 3,083,810 2,972,704 
All other countries8,428,253 7,270,372 7,069,369 
Total revenue$27,746,036 $23,826,195 $23,894,091