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J&J Worldwide Services Acquisition (Tables)

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following summarizes the consideration transferred at closing for the J&J acquisition (dollars in millions):


Cash consideration	$	809
Deferred and contingent consideration	11
Total consideration	$	820

Schedule of Excess Purchase Price Over Estimated Fair Value of Net Assets Acquired

The following represents the summary of the excess purchase price over the fair value of net assets acquired (dollars in millions):


Purchase price	$	820
Less: Estimated fair value of net assets acquired (see table below)	354
Excess purchase price over estimated fair value of net assets acquired	$	466

Schedule of Aggregate Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values assigned to the identified assets acquired and liabilities assumed at the acquisition date on February 27, 2024 (dollars in millions):


Assets Acquired:
Cash and cash equivalents	$	26

Receivables, net	92
Contract Assets	22
Prepaid expenses	2
Other current assets	2
Property and equipment, net	11
Other intangible assets, net	297
Operating lease assets	6
Investments in unconsolidated subsidiaries	25
Other assets, net	11
Total assets acquired	494
Liabilities Assumed:
Accounts payable and accrued expenses	60
Compensation and employee benefits	7
Contract liabilities	1
Income taxes payable	1
Other current liabilities	2
Non-current operating lease liabilities	3
Deferred tax liabilities, net	57
Other liabilities	3
Total liabilities assumed	134
Non-controlling Interest Acquired	6
Estimated Fair Value of Net Assets Acquired	$	354

Schedule of Trademarks Acquired as Part of Business Combination

In connection with the J&J acquisition, below is a summary of the preliminary value allocated to the intangible assets acquired (dollars in millions):


				March 31, 2024
Asset Class	Amortization Period	Amount Assigned at Acquisition Date		Accumulated Amortization		Net Carrying Value
Customer relationships	9-12 years	$	174	$	1	$	173
Backlog	4-6 years	111		2		109
Trademark	3 years	10		—		10
Technology	5 years	2		—		2

Schedule of Pro Forma Results Prepared for Comparative Purposes

These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the J&J acquisition occurred on January 1, 2023 and may not be indicative of future operating results (dollars in millions, except share and per share data):


	Three Months Ended March 31,
	2024		2023
Revenue	$	8,007	$	7,525
Operating income	214		14
Net income attributable to CBRE Group, Inc.	131		93
Basic income per share:
Net income per share attributable to CBRE Group, Inc.	$	0.43	$	0.30
Weighted average shares outstanding for basic income per share	305,808,212		310,464,609
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.	$	0.42	$	0.29
Weighted average shares outstanding for diluted income per share	308,502,456		315,358,147