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Business Segments
 12 Months Ended
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.