XML 27 R10.htm IDEA: XBRL DOCUMENT v3.19.1

Business Segments

3 Months Ended

Mar. 31, 2019

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, property and facility management, project and development management, energy management and sustainability, construction management, and advisory, consulting and valuation services. 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, (a) gross contract costs and (b) net non-cash mortgage servicing rights ("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, operating margins, and performance. Refer to Results of Operations, included in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, for a full description of gross contract costs. 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 March 31, 2019, we define the Chief Operating Decision Maker collectively as our Global Executive Board, which comprises the following:

• Global Chief Executive Officer	• Chief Executive Officers of each of our four business segments
• Global Chief Financial Officer	• Global Chief Executive Officer of Corporate Solutions
• Global Chief Administrative Officer	• Global Chief Executive Officer of Capital Markets

Summarized financial information by business segment is as follows.

	Three Months Ended March 31,
(in millions)	2019			2018
Americas - Real Estate Services
Leasing	$	389.8		304.5
Capital Markets	100.1			111.0
Property & Facility Management	1,362.0			1,183.5
Project & Development Services	308.7			269.6
Advisory, Consulting and Other	89.5			72.4
Revenue	2,250.1			1,941.0
Reimbursements	(1,351.4		)	(1,181.7	)
Revenue before reimbursements	898.7			759.3
Gross contract costs	(187.7		)	(133.1	)
Net non-cash MSR and mortgage banking derivative activity	0.1			(2.7	)
Fee revenue	711.1			623.5
Operating expenses, excluding reimbursed expenses:
Compensation, operating and administrative expenses	810.8			688.7
Depreciation and amortization	27.3			24.3
Segment operating expenses, excluding reimbursed expenses	838.1			713.0
Gross contract costs	(187.7		)	(133.1	)
Fee-based segment operating expenses	650.4			579.9
Segment operating income	$	60.6		46.3
Equity (loss) earnings	(0.3		)	0.1
Segment income	$	60.3		46.4
EMEA - Real Estate Services
Leasing	$	52.2		58.9
Capital Markets	64.0			89.3
Property & Facility Management	369.3			350.3
Project & Development Services	180.5			222.6
Advisory, Consulting and Other	57.4			62.5
Revenue	723.4			783.6
Reimbursements	(164.6		)	(156.0	)
Revenue before reimbursements	558.8			627.6
Gross contract costs	(242.7		)	(277.2	)
Fee revenue	316.1			350.4
Operating expenses, excluding reimbursed expenses:
Compensation, operating and administrative expenses	576.9			636.2
Depreciation and amortization	11.3			11.4
Segment operating expenses, excluding reimbursed expenses	588.2			647.6
Gross contract costs	(242.7		)	(277.2	)
Fee-based segment operating expenses	345.5			370.4
Segment operating loss	$	(29.4	)	(20.0	)
Equity earnings	0.1			—
Segment loss	$	(29.3	)	(20.0	)

Continued: Summarized financial information by business segment is as follows.

	Three Months Ended March 31,
(in millions)	2019			2018
Asia Pacific - Real Estate Services
Leasing	$	35.9		37.8
Capital Markets	29.4			32.4
Property & Facility Management	537.8			519.8
Project & Development Services	110.9			87.0
Advisory, Consulting and Other	34.7			34.3
Revenue	748.7			711.3
Reimbursements	(341.1		)	(321.6	)
Revenue before reimbursements	407.6			389.7
Gross contract costs	(209.4		)	(195.3	)
Fee revenue	198.2			194.4
Operating expenses, excluding reimbursed expenses:
Compensation, operating and administrative expenses	400.5			385.0
Depreciation and amortization	6.4			5.6
Segment operating expenses, excluding reimbursed expenses	406.9			390.6
Gross contract costs	(209.4		)	(195.3	)
Fee-based segment operating expenses	197.5			195.3
Segment operating income (loss)	$	0.7		(0.9	)
Equity earnings	0.3			0.3
Segment income (loss)	$	1.0		(0.6	)
LaSalle
Advisory fees	$	77.6		69.9
Transaction fees & other	13.2			16.7
Incentive fees	7.6			32.7
Revenue	98.4			119.3
Reimbursements	(1.9		)	(4.8	)
Revenue before reimbursements	96.5			114.5
Gross contract costs	(2.8		)	(1.3	)
Fee revenue	93.7			113.2
Operating expenses, excluding reimbursed expenses:
Compensation, operating and administrative expenses	82.9			84.6
Depreciation and amortization	1.5			0.8
Segment operating expenses, excluding reimbursed expenses	84.4			85.4
Gross contract costs	(2.8		)	(1.3	)
Fee-based segment operating expenses	81.6			84.1
Segment operating income	$	12.1		29.1
Equity earnings	4.9			13.2
Segment income	$	17.0		42.3

	Three Months Ended March 31,
(in millions)	2019			2018
Segment Reconciling Items
Fee revenue	$	1,319.1		1,281.5
Gross contract costs	642.6			606.9
Net non-cash MSR and mortgage banking derivative activity	(0.1		)	2.7
Revenue before reimbursements	1,961.6			1,891.1
Reimbursements	1,859.0			1,664.1
Revenue	$	3,820.6		3,555.2
Total segment operating expenses, excluding reimbursed expenses & before restructuring and acquisition charges	$	1,917.6		1,836.6
Reimbursed expenses	1,859.0			1,664.1
Total segment operating expenses before restructuring and acquisition charges	$	3,776.6		3,500.7
Operating income before restructuring and acquisition charges	$	44.0		54.5
Restructuring and acquisition charges	18.6			0.7
Operating income	$	25.4		53.8

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Name:	us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration