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Segments | 6 Months Ended
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Jun. 30, 2023
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. In addition, we also have a “Corporate, other and elimination” 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 but 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 chief operating decision marker (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 amounts 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 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, efficiency and cost-reduction initiatives, integration and other costs related to acquisitions and a provision associated with Telford's fire safety remediation efforts. This metric excludes the impact of corporate overhead as these costs are reported under Corporate and other. Summarized financial information by segment is as follows (dollars in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Revenue |  |  |  |  |  |  |
Advisory Services | $ | 2,041,673 |  |  | $ | 2,587,983 |  |  | $ | 3,895,541 |  |  | $ | 4,836,431 |
Global Workplace Solutions | 5,426,062 |  |  | 4,908,145 |  |  | 10,763,784 |  |  | 9,713,761 |
Real Estate Investments | 255,657 |  |  | 277,281 |  |  | 479,503 |  |  | 561,038 |
Corporate, other and eliminations (1) | (3,529) |  |  | (2,131) |  |  | (7,851) |  |  | (7,019) |
Total revenue | $ | 7,719,863 |  |  | $ | 7,771,278 |  |  | $ | 15,130,977 |  |  | $ | 15,104,211 |
Segment Operating Profit |  |  |  |  |  |  |
Advisory Services | $ | 315,443 |  |  | $ | 520,657 |  |  | $ | 585,175 |  |  | $ | 986,311 |
Global Workplace Solutions | 232,680 |  |  | 218,296 |  |  | 462,336 |  |  | 421,032 |
Real Estate Investments | 33,131 |  |  | 274,518 |  |  | 164,629 |  |  | 441,570 |
Total reportable segment operating profit | $ | 581,254 |  |  | $ | 1,013,471 |  |  | $ | 1,212,140 |  |  | $ | 1,848,913 |
_______________________________ (1)Eliminations represent revenue from transactions with other operating segments. See Note 12. Reconciliation of total reportable segment operating profit to net income is as follows (dollars in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net income attributable to CBRE Group, Inc. | $ | 201,403 |  |  | $ | 487,322 |  |  | $ | 318,295 |  |  | $ | 879,619 |
Net income attributable to non-controlling interests | 4,750 |  |  | 2,594 |  |  | 12,931 |  |  | $ | 6,568 |
Net income | 206,153 |  |  | 489,916 |  |  | 331,226 |  |  | $ | 886,187 |
Adjustments to increase (decrease) net income: |  |  |  |  |  |  |
Depreciation and amortization | 154,387 |  |  | 162,359 |  |  | 315,878 |  |  | 311,391 |
Asset impairments | — |  |  | 26,405 |  |  | — |  |  | 36,756 |
Interest expense, net of interest income | 42,982 |  |  | 18,518 |  |  | 71,396 |  |  | 31,344 |
Provision for income taxes | 55,404 |  |  | 120,762 |  |  | 83,439 |  |  | 117,024 |
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue | (459) |  |  | (7,495) |  |  | 6,519 |  |  | 15,361 |
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period | — |  |  | (1,451) |  |  | — |  |  | (3,147) |
Costs incurred related to legal entity restructuring | — |  |  | 10,245 |  |  | — |  |  | 11,921 |
Integration and other costs related to acquisitions | 36,444 |  |  | 8,209 |  |  | 54,578 |  |  | 16,330 |
Costs associated with efficiency and cost-reduction initiatives | 2,310 |  |  | — |  |  | 140,557 |  |  | — |
Provision associated with Telford’s fire safety remediation efforts (1) | — |  |  | 37,505 |  |  | — |  |  | 37,505 |
Corporate and other loss, including eliminations | 84,033 |  |  | 148,498 |  |  | 208,547 |  |  | 388,241 |
Total reportable segment operating profit | $ | 581,254 |  |  | $ | 1,013,471 |  |  | $ | 1,212,140 |  |  | $ | 1,848,913 |
______________ (1)See Note 15 for additional information. 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):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Revenue |  |  |  |  |  |  |
United States | $ | 4,211,104 |  |  | $ | 4,436,115 |  |  | $ | 8,355,700 |  |  | $ | 8,567,512 |
United Kingdom | 1,055,985 |  |  | 1,046,493 |  |  | 2,051,413 |  |  | 2,032,491 |
All other countries | 2,452,774 |  |  | 2,288,670 |  |  | 4,723,864 |  |  | 4,504,208 |
Total revenue | $ | 7,719,863 |  |  | $ | 7,771,278 |  |  | $ | 15,130,977 |  |  | $ | 15,104,211 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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