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Business Segments | 12 Months Ended
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Dec. 31, 2016
Segment Reporting [Abstract] |
Business Segments |
3. | BUSINESS SEGMENTS
We manage and report our operations as four business segments: The three geographic regions of RES including: (1) Americas, (2) 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 services, energy management and sustainability, construction management, and advisory, consulting and valuation services. We consider "property management" to represent services provided to non-occupying property investors and "facilities management" to represent services provided 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. We have reclassified certain prior year amounts to conform to the current presentation. These reclassifications have not been material and have not affected reported net income. For segment reporting, gross contract costs and Net non-cash MSR and mortgage banking derivative activity are both excluded from revenue in determining "fee revenue". Gross contract costs are excluded from operating expenses in determining "fee-based operating expenses." Excluding these costs from revenue and expenses results in a net presentation which we believe more accurately reflects how we manage our expense base and operating margins. See Note 2 for additional information on our gross and net accounting policies. In addition, our measure of segment results excludes Restructuring and acquisition charges. The Chief Operating Decision Maker of JLL measures and evaluates the segment results excluding (a) gross contract costs, (b) Net non-cash MSR and mortgage banking derivative activity, and (c) Restructuring and acquisition charges. As of December 31, 2016, we define the Chief Operating Decision Maker collectively as our Global Executive Board, which is comprised of the following.
• | Global Chief Executive Officer
• | Global Chief Financial Officer
• | Chief Executive Officers of each of our four business segments
• | Global Chief Executive Officer of Corporate Solutions
• | Global Head of Capital Markets
• | Global Chief Human Resources Officer
Summarized financial information by business segment is as follows.
| Year Ended December 31,
($ in millions) | 2016 | 2015 | 2014
Real Estate Services |  |  |
Americas |  |  |
Revenue | $ | 2,965.9 |  | 2,605.5 |  | 2,319.1 |
Gross contract costs | (192.0 | ) | (212.1 | ) | (210.4 | )
Net non-cash MSR and mortgage banking derivative activity | (23.5 | ) | 0.8 |  | — |
Total fee revenue | 2,750.4 |  | 2,394.2 |  | 2,108.7 |
Operating expenses: |  |  |  |  |
Compensation, operating and administrative expenses | 2,620.6 |  | 2,297.1 |  | 2,045.3 |
Depreciation and amortization | 84.6 |  | 63.2 |  | 55.2 |
Total segment operating expenses | 2,705.2 |  | 2,360.3 |  | 2,100.5 |
Gross contract costs | (192.0 | ) | (212.1 | ) | (210.4 | )
Total fee-based segment operating expenses | 2,513.2 |  | 2,148.2 |  | 1,890.1 |
Segment operating income | 260.7 |  | 245.2 |  | 218.6 |
Equity earnings | 1.2 |  | 5.9 |  | 0.8 |
Total segment income | $ | 261.9 |  | 251.1 |  | 219.4 |
EMEA |  |  |
Revenue | $ | 2,077.5 |  | 1,803.1 |  | 1,632.6 |
Gross contract costs | (563.3 | ) | (397.4 | ) | (316.4 | )
Total fee revenue | 1,514.2 |  | 1,405.7 |  | 1,316.2 |
Operating expenses: |  |  |  |  |
Compensation, operating and administrative expenses | 1,961.3 |  | 1,631.2 |  | 1,488.0 |
Depreciation and amortization | 37.1 |  | 27.2 |  | 23.8 |
Total segment operating expenses | 1,998.4 |  | 1,658.4 |  | 1,511.8 |
Gross contract costs | (563.3 | ) | (397.4 | ) | (316.4 | )
Total fee-based segment operating expenses | 1,435.1 |  | 1,261.0 |  | 1,195.4 |
Segment operating income | 79.1 |  | 144.7 |  | 120.8 |
Equity (losses) earnings | (0.1 | ) | 0.8 |  | — |
Total segment income | $ | 79.0 |  | 145.5 |  | 120.8 |
Continued: Summarized financial information by business segment is as follows.
| Year Ended December 31,
($ in millions) | 2016 | 2015 | 2014
Real Estate Services |  |  |
Asia Pacific |  |  |  |  |
Revenue | $ | 1,352.6 |  | 1,160.1 |  | 1,109.8 |
Gross contract costs | (268.2 | ) | (191.8 | ) | (201.1 | )
Total fee revenue | 1,084.4 |  | 968.3 |  | 908.7 |
Operating expenses: |  |  |  |  |
Compensation, operating and administrative expenses | 1,248.9 |  | 1,058.1 |  | 1,012.7 |
Depreciation and amortization | 17.3 |  | 15.5 |  | 13.3 |
Total segment operating expenses | 1,266.2 |  | 1,073.6 |  | 1,026.0 |
Gross contract costs | (268.2 | ) | (191.8 | ) | (201.1 | )
Total fee-based segment operating expenses | 998.0 |  | 881.8 |  | 824.9 |
Segment operating income | 86.4 |  | 86.5 |  | 83.8 |
Equity earnings | 1.1 |  | 0.7 |  | 0.4 |
Total segment income | $ | 87.5 |  | 87.2 |  | 84.2 |
LaSalle |  |  |  |  |
Revenue | $ | 407.8 |  | 397.0 |  | 368.1 |
Operating expenses: |  |  |
Compensation, operating and administrative expenses | 322.1 |  | 307.3 |  | 281.0 |
Depreciation and amortization | 2.8 |  | 2.2 |  | 2.1 |
Total segment operating expenses | 324.9 |  | 309.5 |  | 283.1 |
Segment operating income | 82.9 |  | 87.5 |  | 85.0 |
Equity earnings | 31.5 |  | 70.1 |  | 47.0 |
Total segment income | $ | 114.4 |  | 157.6 |  | 132.0 |
Segment Reconciling Items |  |  |  |  |
Total revenue | 6,803.8 |  | 5,965.7 |  | 5,429.6 |
Total segment operating expenses before restructuring and acquisition charges | 6,294.7 |  | 5,401.8 |  | 4,921.5 |
Operating income before restructuring and acquisition charges | 509.1 |  | 563.9 |  | 508.1 |
Restructuring and acquisition charges | 68.5 |  | 34.1 |  | 42.5 |
Operating income | $ | 440.6 |  | 529.8 |  | 465.6 |
Identifiable assets by segment are those assets used by or result from each segment's business. Corporate assets are principally cash and cash equivalents, software, and computer hardware. The following table reconciles segment identifiable assets and investments in real estate ventures to consolidated amounts.
| December 31, 2016 |  | December 31, 2015
($ in millions) | IDENTIFIABLE ASSETS | INVESTMENTS IN REAL ESTATE VENTURES |  | IDENTIFIABLE ASSETS | INVESTMENTS IN REAL ESTATE VENTURES
Real Estate Services: |  |  |  |  |
Americas | $ | 4,001.0 |  | 10.7 |  |  | $ | 3,174.7 |  | 9.4 |
EMEA | 1,864.7 |  | 2.8 |  |  | 1,486.7 |  | 1.0 |
Asia Pacific | 1,065.3 |  | 7.5 |  |  | 901.2 |  | 3.8 |
LaSalle | 558.6 |  | 334.4 |  |  | 513.9 |  | 297.3 |
Corporate | 139.8 |  | — |  |  | 110.6 |  | — |
Consolidated | $ | 7,629.4 |  | 355.4 |  |  | $ | 6,187.1 |  | 311.5 |
The table below reconciles segment property and equipment expenditures to consolidated expenditures.
| Year Ended December 31,
($ in millions) | 2016 | 2015 | 2014
Real Estate Services: |  |  |
Americas | $ | 141.6 |  | 55.5 |  | 62.9 |
EMEA | 54.2 |  | 42.9 |  | 40.4 |
Asia Pacific | 16.1 |  | 14.4 |  | 16.4 |
LaSalle | 67.9 |  | 8.4 |  | 2.0 |
Corporate | 36.2 |  | 27.9 |  | 35.2 |
Total capital expenditures (1) | 316.0 |  | 149.1 |  | 156.9 |
(1) Included in total capital expenditures for the years ended December 31, 2016, 2015 and 2014, were $99.8 million, $1.3 million, and $24.2 million, respectively, related to acquisition of investment properties by less than wholly-owned consolidated VIEs. The following table sets forth the revenue and assets from our most significant currencies.
| TOTAL REVENUE |  | TOTAL ASSETS
| Year Ended December 31, |  | December 31,
($ in millions) | 2016 | 2015 | 2014 |  | 2016 | 2015
United States dollar | $ | 2,948.5 |  | 2,536.4 |  | 2,214.1 |  |  | $ | 4,615.3 |  | 3,635.3 |
British pound | 1,007.3 |  | 915.5 |  | 833.4 |  |  | 1,005.3 |  | 839.5 |
Euro | 880.7 |  | 748.7 |  | 701.8 |  |  | 581.0 |  | 497.4 |
Australian dollar | 345.9 |  | 303.0 |  | 303.1 |  |  | 215.5 |  | 212.1 |
Hong Kong dollar | 246.9 |  | 186.7 |  | 170.5 |  |  | 161.1 |  | 129.0 |
Indian rupee | 216.2 |  | 189.4 |  | 155.1 |  |  | 182.0 |  | 150.1 |
Japanese yen | 199.1 |  | 170.0 |  | 155.1 |  |  | 89.5 |  | 53.1 |
Chinese yuan | 196.2 |  | 178.6 |  | 169.2 |  |  | 147.2 |  | 107.2 |
Singapore dollar | 104.0 |  | 123.2 |  | 157.7 |  |  | 131.8 |  | 123.1 |
Other currencies | 659.0 |  | 614.2 |  | 569.6 |  |  | 500.7 |  | 440.3 |
| $ | 6,803.8 |  | 5,965.7 |  | 5,429.6 |  |  | $ | 7,629.4 |  | 6,187.1 |
We face restrictions in certain countries that limit or prevent the transfer of funds to other countries or the exchange of the local currency to other currencies, however, we generally face no such restrictions with regard to the use or application of funds for ordinary course business activities within such countries. The assets of these countries represented approximately 6% and 5% of our total assets as of December 31, 2016 and 2015, respectively.

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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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
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