XML 27 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

Business Segments | 6 Months Ended
--- | ---
Jun. 30, 2020
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. 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 on a global basis 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 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 June 30, 2020, we define the Chief Operating Decision Maker collectively as our Global Executive Board, which comprises the following:
• Chief Executive Officer and President | • Chief Executive Officers of each of our four business segments
• Chief Financial Officer | • Chief Executive Officer of Corporate Solutions
• Chief Administrative Officer | • Chief Executive Officer of Capital Markets
• Chief Human Resources Officer | • Co-Chief Executive Officers of JLL Technologies
Summarized financial information by business segment is as follows.
| Three Months Ended June 30, | Six Months Ended June 30,
(in millions) | 2020 | 2019 | 2020 | 2019
Americas - Real Estate Services |  |  |  |
Leasing | $ | 278.1 |  | 491.8 |  | $ | 697.0 |  | 881.6 |
Capital Markets | 140.8 |  | 129.8 |  | 388.2 |  | 229.9 |
Property & Facility Management | 1,439.5 |  | 1,370.9 |  | 2,898.3 |  | 2,732.9 |
Project & Development Services | 275.3 |  | 376.8 |  | 581.7 |  | 685.5 |
Advisory, Consulting and Other | 95.3 |  | 94.3 |  | 186.9 |  | 183.8 |
Revenue | 2,229.0 |  | 2,463.6 |  | 4,752.1 |  | 4,713.7 |
Reimbursements | (1,345.0 | ) | (1,403.1 | ) | (2,738.5 | ) | (2,754.5 | )
Revenue before reimbursements | 884.0 |  | 1,060.5 |  | 2,013.6 |  | 1,959.2 |
Gross contract costs | (192.3 | ) | (191.8 | ) | (405.1 | ) | (379.5 | )
Net non-cash MSR and mortgage banking derivative activity | (8.6 | ) | (4.8 | ) | (7.0 | ) | (4.7 | )
Fee revenue | 683.1 |  | 863.9 |  | 1,601.5 |  | 1,575.0 |
Operating expenses, excluding reimbursed expenses: |  |  |  |  |  |  |
Compensation, operating and administrative expenses | 805.3 |  | 913.7 |  | 1,815.6 |  | 1,724.5 |
Depreciation and amortization | 39.1 |  | 26.3 |  | 76.5 |  | 53.6 |
Segment operating expenses, excluding reimbursed expenses | 844.4 |  | 940.0 |  | 1,892.1 |  | 1,778.1 |
Gross contract costs | (192.3 | ) | (191.8 | ) | (405.1 | ) | (379.5 | )
Fee-based segment operating expenses | 652.1 |  | 748.2 |  | 1,487.0 |  | 1,398.6 |
Segment operating income | $ | 39.6 |  | 120.5 |  | $ | 121.5 |  | 181.1 |
Equity earnings | 2.9 |  | 0.4 |  | 15.6 |  | 0.1 |
Segment income | $ | 42.5 |  | 120.9 |  | $ | 137.1 |  | 181.2 |
EMEA - Real Estate Services |  |  |  |
Leasing | $ | 46.7 |  | 65.9 |  | $ | 94.8 |  | 118.1 |
Capital Markets | 50.0 |  | 78.5 |  | 123.2 |  | 142.5 |
Property & Facility Management | 320.5 |  | 380.6 |  | 695.5 |  | 749.9 |
Project & Development Services | 164.3 |  | 219.2 |  | 367.5 |  | 399.7 |
Advisory, Consulting and Other | 44.7 |  | 74.1 |  | 101.1 |  | 131.5 |
Revenue | 626.2 |  | 818.3 |  | 1,382.1 |  | 1,541.7 |
Reimbursements | (168.8 | ) | (153.7 | ) | (351.6 | ) | (318.3 | )
Revenue before reimbursements | 457.4 |  | 664.6 |  | 1,030.5 |  | 1,223.4 |
Gross contract costs | (189.4 | ) | (284.7 | ) | (452.0 | ) | (527.4 | )
Fee revenue | 268.0 |  | 379.9 |  | 578.5 |  | 696.0 |
Operating expenses, excluding reimbursed expenses: |  |  |  |  |  |
Compensation, operating and administrative expenses | 481.8 |  | 654.6 |  | 1,066.2 |  | 1,231.5 |
Depreciation and amortization | 9.0 |  | 11.3 |  | 18.2 |  | 22.6 |
Segment operating expenses, excluding reimbursed expenses | 490.8 |  | 665.9 |  | 1,084.4 |  | 1,254.1 |
Gross contract costs | (189.4 | ) | (284.7 | ) | (452.0 | ) | (527.4 | )
Fee-based segment operating expenses | 301.4 |  | 381.2 |  | 632.4 |  | 726.7 |
Segment operating loss | $ | (33.4 | ) | (1.3 | ) | $ | (53.9 | ) | (30.7 | )
Equity losses | — |  | (1.1 | ) | — |  | (1.0 | )
Segment loss | $ | (33.4 | ) | (2.4 | ) | $ | (53.9 | ) | (31.7 | )
Continued: Summarized financial information by business segment is as follows.
| Three Months Ended June 30, | Six Months Ended June 30,
(in millions) | 2020 | 2019 | 2020 | 2019
Asia Pacific - Real Estate Services |  |  |  |
Leasing | $ | 33.8 |  | 66.2 |  | $ | 59.2 |  | 102.1 |
Capital Markets | 24.0 |  | 48.2 |  | 45.7 |  | 77.6 |
Property & Facility Management | 515.2 |  | 553.4 |  | 1,047.2 |  | 1,091.2 |
Project & Development Services | 97.2 |  | 137.3 |  | 192.0 |  | 248.2 |
Advisory, Consulting and Other | 45.1 |  | 50.1 |  | 83.3 |  | 84.8 |
Revenue | 715.3 |  | 855.2 |  | 1,427.4 |  | 1,603.9 |
Reimbursements | (327.0 | ) | (359.6 | ) | (611.9 | ) | (700.7 | )
Revenue before reimbursements | 388.3 |  | 495.6 |  | 815.5 |  | 903.2 |
Gross contract costs | (189.5 | ) | (232.7 | ) | (439.0 | ) | (442.1 | )
Fee revenue | 198.8 |  | 262.9 |  | 376.5 |  | 461.1 |
Operating expenses, excluding reimbursed expenses: |  |  |  |  |  |
Compensation, operating and administrative expenses | 362.6 |  | 462.6 |  | 780.1 |  | 863.1 |
Depreciation and amortization | 7.0 |  | 6.4 |  | 13.6 |  | 12.8 |
Segment operating expenses, excluding reimbursed expenses | 369.6 |  | 469.0 |  | 793.7 |  | 875.9 |
Gross contract costs | (189.5 | ) | (232.7 | ) | (439.0 | ) | (442.1 | )
Fee-based segment operating expenses | 180.1 |  | 236.3 |  | 354.7 |  | 433.8 |
Segment operating income | $ | 18.7 |  | 26.6 |  | $ | 21.8 |  | 27.3 |
Equity earnings (losses) | 0.5 |  | 0.4 |  | (0.2 | ) | 0.7 |
Segment income | $ | 19.2 |  | 27.0 |  | $ | 21.6 |  | 28.0 |
LaSalle |  |  |  |  |  |
Advisory fees | $ | 80.9 |  | 79.5 |  | $ | 166.5 |  | 157.1 |
Transaction fees & other | 4.8 |  | 16.3 |  | 18.4 |  | 29.5 |
Incentive fees | 14.2 |  | 33.6 |  | 19.9 |  | 41.2 |
Revenue | 99.9 |  | 129.4 |  | 204.8 |  | 227.8 |
Reimbursements | (1.1 | ) | (1.9 | ) | (2.9 | ) | (3.8 | )
Revenue before reimbursements | 98.8 |  | 127.5 |  | 201.9 |  | 224.0 |
Gross contract costs | (3.8 | ) | (4.2 | ) | (8.3 | ) | (7.0 | )
Fee revenue | 95.0 |  | 123.3 |  | 193.6 |  | 217.0 |
Operating expenses, excluding reimbursed expenses: |  |  |  |  |  |
Compensation, operating and administrative expenses | 82.9 |  | 96.0 |  | 170.0 |  | 178.9 |
Depreciation and amortization | 1.8 |  | 1.5 |  | 3.6 |  | 3.0 |
Segment operating expenses, excluding reimbursed expenses | 84.7 |  | 97.5 |  | 173.6 |  | 181.9 |
Gross contract costs | (3.8 | ) | (4.2 | ) | (8.3 | ) | (7.0 | )
Fee-based segment operating expenses | 80.9 |  | 93.3 |  | 165.3 |  | 174.9 |
Segment operating income | $ | 14.1 |  | 30.0 |  | $ | 28.3 |  | 42.1 |
Equity earnings (losses) | 11.3 |  | 10.5 |  | (29.0 | ) | 15.4 |
Segment income (loss) | $ | 25.4 |  | 40.5 |  | $ | (0.7 | ) | 57.5 |
| Three Months Ended June 30, | Six Months Ended June 30,
(in millions) | 2020 | 2019 | 2020 | 2019
Segment Reconciling Items |  |  |  |
Fee revenue | $ | 1,244.9 |  | 1,630.0 |  | $ | 2,750.1 |  | 2,949.1 |
Gross contract costs | 575.0 |  | 713.4 |  | 1,304.4 |  | 1,356.0 |
Net non-cash MSR and mortgage banking derivative activity | 8.6 |  | 4.8 |  | 7.0 |  | 4.7 |
Revenue before reimbursements | 1,828.5 |  | 2,348.2 |  | 4,061.5 |  | 4,309.8 |
Reimbursements | 1,841.9 |  | 1,918.3 |  | 3,704.9 |  | 3,777.3 |
Revenue | $ | 3,670.4 |  | 4,266.5 |  | $ | 7,766.4 |  | 8,087.1 |
Total segment operating expenses, excluding reimbursed expenses & before restructuring and acquisition charges | $ | 1,789.5 |  | 2,172.4 |  | $ | 3,943.8 |  | 4,090.0 |
Reimbursed expenses | 1,841.9 |  | 1,918.3 |  | 3,704.9 |  | 3,777.3 |
Total segment operating expenses before restructuring and acquisition charges | $ | 3,631.4 |  | 4,090.7 |  | $ | 7,648.7 |  | 7,867.3 |
Operating income before restructuring and acquisition charges | $ | 39.0 |  | 175.8 |  | $ | 117.7 |  | 219.8 |
Less: Restructuring and acquisition charges | 28.2 |  | 25.7 |  | 42.3 |  | 44.3 |
Operating income | $ | 10.8 |  | 150.1 |  | $ | 75.4 |  | 175.5 |

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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -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