XML 46 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Investments in Real Estate Ventures | 12 Months Ended
--- | ---
Dec. 31, 2017
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Real Estate Ventures |
5. | INVESTMENTS IN REAL ESTATE VENTURES
As of December 31, 2017 and 2016, we had Investments in real estate ventures of $376.2 million and $355.4 million, respectively. Approximately 70% of our investments, as of December 31, 2017, are in 44 separate property or commingled funds, where we co-invest alongside our clients and for which we also have an advisory agreement. Our investment ownership percentages in these funds generally range from less than 1% to 10%. The remaining 30% of our Investments in real estate ventures, as of December 31, 2017, were attributable to investment vehicles that use our capital and outside capital primarily provided by institutional investors to invest in certain real estate ventures that own and operate real estate. Of our investments attributable to investment vehicles, the majority was invested in LaSalle Investment Company II ("LIC II"), in which we held an effective ownership interest of 48.78%. We have maximum potential unfunded commitments to direct investments or investment vehicles of $216.5 million as of December 31, 2017, of which $65.4 million relates to our commitment to LIC II. Our investments in real estate ventures include investments in entities classified as VIEs, which we analyze for potential consolidation. We had equity method investments, either directly or indirectly, of $7.8 million and $7.3 million as of December 31, 2017 and 2016, respectively, in entities classified as VIEs. We have determined that we are the primary beneficiary of certain VIEs and accordingly, we have consolidated such entities. The assets of the consolidated VIEs are available only for the settlement of the obligations of the respective entities and the mortgage loans of the consolidated VIEs are non-recourse to JLL. During the fourth quarter of 2016, we deconsolidated two VIEs due to changes in the decision-making rights of the ownership parties or a reduction in our ownership percentage. The deconsolidation had no material impact on our Consolidated Statement of Comprehensive Income for the year ended December 31, 2016. Summarized financial information for our consolidated VIEs is presented in the following tables.
| December 31,
($ in millions) | 2017 | 2016
Property and equipment, net | $ | 15.7 |  | 13.8 |
Investments in real estate ventures | 12.6 |  | 10.3 |
Other assets (1) | 44.4 |  | 40.7 |
Total assets | $ | 72.7 |  | 64.8 |
Other current liabilities (1) | $ | 30.9 |  | 35.0 |
Mortgage indebtedness (included in Other liabilities) | 9.2 |  | 9.7 |
Total liabilities | 40.1 |  | 44.7 |
Members' equity (included in Noncontrolling interest) | 32.6 |  | 20.1 |
Total liabilities and members' equity | $ | 72.7 |  | 64.8 |
(1) Balances primarily represent investment properties and their corresponding liabilities, classified as held-for-sale.
| Year Ended December 31,
($ in millions) | 2017 | 2016 | 2015
Revenue (2) | $ | 5.9 |  | 6.6 |  | 8.5 |
Operating and other expenses | (4.2 | ) | (7.1 | ) | (3.9 | )
Gain on sale of investment | — |  | 13.3 |  | 1.4 |
Net income | $ | 1.7 |  | 12.8 |  | 6.0 |
(2) Includes $3.3 million for the year ended December 31, 2015, representing our proportionate share of the gain on the sale of real estate by an investment of one of our consolidated VIE's that was accounted for pursuant to the equity method. We allocate the members' equity and net income of the consolidated VIEs to the noncontrolling interest holders as Noncontrolling interest on the Consolidated Balance Sheets and as Net income attributable to noncontrolling interest in the Consolidated Statements of Comprehensive Income, respectively. The following tables summarize the combined financial information for our unconsolidated real estate ventures (including those held via LIC II) accounted for under equity method or at fair value.
|  | December 31,
($ in millions) |  | 2017 | 2016
Balance Sheets: |  |  |
| Investments in real estate, net of depreciation |  | $ | 17,407.4 |  | 14,780.7 |
| Total assets |  | 19,589.7 |  | 16,728.2 |
| Mortgage indebtedness |  | 6,170.5 |  | 5,480.6 |
| Other borrowings |  | 926.3 |  | 502.0 |
| Total liabilities |  | 8,301.1 |  | 6,729.7 |
| Total equity |  | 11,288.6 |  | 9,998.5 |
|  | Year Ended December 31,
($ in millions) | 2017 | 2016 | 2015
Statements of Operations: |  |  |
| Revenue | $ | 1,319.0 |  | 1,266.8 |  | 1,473.6 |
| Net income | 895.7 |  | 874.7 |  | 1,179.5 |
Impairment Impairment charges on properties held by our investments which were other-than-temporarily impaired aggregated to $1.2 million, $1.7 million, and $6.0 million for the years ended December 31, 2017, 2016, and 2015, respectively. Fair Value We report a majority of our investments in real estate ventures at fair value. For such investments, we increase or decrease our investment each reporting period by the change in the fair value and we report these fair value adjustments in the Consolidated Statements of Comprehensive Income within Equity earnings from real estate ventures. The table below shows the movement in our investments in real estate ventures reported at fair value.
| Year Ended December 31,
($ in millions) | 2017 | 2016 | 2015
Fair value investments as of January 1, | $ | 212.7 |  | 155.2 |  | 113.6 |
Investments | 33.5 |  | 105.8 |  | 33.8 |
Distributions | (37.1 | ) | (62.1 | ) | (9.0 | )
Change in fair value | 28.1 |  | 16.6 |  | 21.1 |
Foreign currency translation adjustments, net | 5.1 |  | (2.8 | ) | (4.3 | )
Fair value investments as of December 31, | $ | 242.3 |  | 212.7 |  | 155.2 |
See Note 9 for additional discussion of our investments in real estate ventures reported at fair value.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration