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Business Segments | 6 Months Ended
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Jun. 30, 2016
Segment Reporting [Abstract] |
Business Segments |
4. | BUSINESS SEGMENTS
We manage and report our operations as four business segments: The three geographic regions of RES including: (1) Americas, (2) Europe, Middle East and Africa ("EMEA"), and (3) Asia Pacific; and (4) LaSalle, which offers investment management services on a global basis. Each geographic region offers our full range of Real Estate Services, including agency leasing and tenant representation, capital markets and hotels, property management, facilities management, project and development management, energy management and sustainability, construction management, and advisory, consulting and valuation services. We define "property management" to mean services we provide to non-occupying property investors, "facilities management" means services we provide to owner-occupiers. LaSalle provides investment management services to institutional investors and high-net-worth individuals. Operating income represents total revenue less direct and allocated indirect expenses. We allocate all indirect expenses to our segments, other than interest and income taxes, as nearly all expenses incurred benefit one or more of the segments. Allocated expenses primarily consist of corporate global overhead, which we allocate to the business segments based on the budgeted operating expenses of each segment. For segment reporting, we present revenue net of gross contract costs in our RES segments. Excluding these costs from revenue and expenses results in a "net" presentation of "fee revenue" and "fee-based operating expenses" that we believe more accurately reflects how we manage our expense base and operating margins. See Note 3 for additional information on our gross and net accounting policies. For segment reporting, we present Equity earnings from real estate ventures within total segment revenue, since the related activity is an integral part of LaSalle. Finally, our measure of segment results excludes Restructuring and acquisition charges. The Chief Operating Decision Maker of JLL measures the segment results net of gross contract costs, inclusive of Equity earnings from real estate ventures, and excluding Restructuring and acquisition charges. We define the Chief Operating Decision Maker collectively as our Global Executive Board, which is comprised of our Global Chief Executive Officer, Global Chief Financial Officer, the Chief Executive Officers of each of our four business segments, and the Chair of the Global Corporate Solutions Board. Summarized financial information by business segment is as follows.
| Three Months Ended June 30, | Six Months Ended June 30,
(in millions) | 2016 | 2015 | 2016 | 2015
Real Estate Services |  |  |  |
Americas |  |  |  |
Revenue | $ | 672.9 |  | 597.5 |  | $ | 1,276.4 |  | 1,151.7 |
Equity earnings | 0.4 |  | 0.5 |  | 0.7 |  | 0.9 |
Total segment revenue | 673.3 |  | 598.0 |  | 1,277.1 |  | 1,152.6 |
Gross contract costs | (43.4 | ) | (52.9 | ) | (92.2 | ) | (105.9 | )
Total segment fee revenue | 629.9 |  | 545.1 |  | 1,184.9 |  | 1,046.7 |
Operating expenses: |  |  |  |  |  |  |  |
Compensation, operating and administrative expenses | 607.4 |  | 536.7 |  | 1,162.0 |  | 1,040.3 |
Depreciation and amortization | 18.4 |  | 15.3 |  | 37.3 |  | 30.9 |
Total segment operating expenses | 625.8 |  | 552.0 |  | 1,199.3 |  | 1,071.2 |
Gross contract costs | (43.4 | ) | (52.9 | ) | (92.2 | ) | (105.9 | )
Total fee-based segment operating expenses | 582.4 |  | 499.1 |  | 1,107.1 |  | 965.3 |
Operating income | $ | 47.5 |  | 46.0 |  | $ | 77.8 |  | 81.4 |
EMEA |  |  |  |
Revenue | $ | 481.3 |  | 416.3 |  | $ | 850.7 |  | 742.0 |
Equity earnings (losses) | — |  | 1.1 |  | (0.1 | ) | 0.8 |
Total segment revenue | 481.3 |  | 417.4 |  | 850.6 |  | 742.8 |
Gross contract costs | (148.2 | ) | (90.1 | ) | (261.1 | ) | (161.9 | )
Total segment fee revenue | 333.1 |  | 327.3 |  | 589.5 |  | 580.9 |
Operating expenses: |  |  |  |  |  |  |  |
Compensation, operating and administrative expenses | 453.1 |  | 379.1 |  | 826.8 |  | 702.2 |
Depreciation and amortization | 8.2 |  | 6.1 |  | 15.8 |  | 11.3 |
Total segment operating expenses | 461.3 |  | 385.2 |  | 842.6 |  | 713.5 |
Gross contract costs | (148.2 | ) | (90.1 | ) | (261.1 | ) | (161.9 | )
Total fee-based segment operating expenses | 313.1 |  | 295.1 |  | 581.5 |  | 551.6 |
Operating income | $ | 20.0 |  | 32.2 |  | $ | 8.0 |  | 29.3 |
Continued: Summarized financial information by business segment is as follows.
| Three Months Ended June 30, | Six Months Ended June 30,
(in millions) | 2016 | 2015 | 2016 | 2015
Real Estate Services |  |  |  |
Asia Pacific |  |  |  |
Revenue | $ | 322.4 |  | 279.6 |  | $ | 585.8 |  | 517.3 |
Equity (losses) earnings | (0.1 | ) | 0.1 |  | — |  | — |
Total segment revenue | 322.3 |  | 279.7 |  | 585.8 |  | 517.3 |
Gross contract costs | (66.6 | ) | (48.7 | ) | (124.2 | ) | (98.3 | )
Total segment fee revenue | 255.7 |  | 231.0 |  | 461.6 |  | 419.0 |
Operating expenses: |  |  |  |  |  |  |  |
Compensation, operating and administrative expenses | 299.9 |  | 259.9 |  | 561.4 |  | 489.5 |
Depreciation and amortization | 4.1 |  | 3.6 |  | 8.2 |  | 7.2 |
Total segment operating expenses | 304.0 |  | 263.5 |  | 569.6 |  | 496.7 |
Gross contract costs | (66.6 | ) | (48.7 | ) | (124.2 | ) | (98.3 | )
Total fee-based segment operating expenses | 237.4 |  | 214.8 |  | 445.4 |  | 398.4 |
Operating income | $ | 18.3 |  | 16.2 |  | $ | 16.2 |  | 20.6 |
LaSalle |  |  |  |  |  |  |  |
Revenue | $ | 127.0 |  | 80.1 |  | $ | 227.5 |  | 166.0 |
Equity earnings | 8.9 |  | 25.4 |  | 21.6 |  | 36.8 |
Total segment revenue | 135.9 |  | 105.5 |  | 249.1 |  | 202.8 |
Operating expenses: |  |  |  |  |  |  |  |
Compensation, operating and administrative expenses | 87.6 |  | 67.5 |  | 166.4 |  | 136.4 |
Depreciation and amortization | 0.7 |  | 0.5 |  | 1.3 |  | 1.0 |
Total segment operating expenses | 88.3 |  | 68.0 |  | 167.7 |  | 137.4 |
Operating income | $ | 47.6 |  | 37.5 |  | $ | 81.4 |  | 65.4 |
Segment Reconciling Items |  |  |  |  |  |  |  |
Total segment revenue | $ | 1,612.8 |  | 1,400.6 |  | $ | 2,962.6 |  | 2,615.5 |
Reclassification of equity earnings | 9.2 |  | 27.1 |  | 22.2 |  | 38.5 |
Total revenue | 1,603.6 |  | 1,373.5 |  | 2,940.4 |  | 2,577.0 |
Total segment operating expenses before restructuring and acquisition charges | 1,479.4 |  | 1,268.7 |  | 2,779.2 |  | 2,418.8 |
Operating income before restructuring and acquisition charges | 124.2 |  | 104.8 |  | 161.2 |  | 158.2 |
Restructuring and acquisition charges | 10.3 |  | 1.8 |  | 17.9 |  | 2.6 |
Operating income | $ | 113.9 |  | 103.0 |  | $ | 143.3 |  | 155.6 |

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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