United States

Securities and Exchange Commission

Washington, D.C. 20549

Form 10-Q

☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended ~~June~~September 30, 2023

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _____ to _____

Commission File Number 1-13145

Jones Lang LaSalle Incorporated

(Exact name of registrant as specified in its charter)

Maryland

36-4150422

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

200 East Randolph Drive

Chicago,

60601

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code:

(312)

782-5800

Former name, former address and former fiscal year, if changed since last report: Not Applicable

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, par value $0.01

JLL

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The number of shares outstanding of the registrant's common stock (par value $0.01) as of the close of business on ~~July 31,~~October 30, 2023 was ~~47,682,168.~~47,572,944.

Table of Contents

Part I. Financial Information

Item 1. Financial Statements

JONES LANG LASALLE INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS


(in millions, except share and per share data)	(in millions, except share and per share data)	June 30, 2023		December 31, 2022	(in millions, except share and per share data)	September 30, 2023		December 31, 2022
Assets	Assets	(unaudited)			Assets	(unaudited)
Current assets:	Current assets:				Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	402.5	519.3	Cash and cash equivalents	$	389.5	519.3
Trade receivables, net of allowance of $76.8 and $66.7		1,982.0		2,148.8
Trade receivables, net of allowance of $77.4 and $66.7					Trade receivables, net of allowance of $77.4 and $66.7	1,912.7		2,148.8
Notes and other receivables	Notes and other receivables	410.9		469.5	Notes and other receivables	393.3		469.5
Reimbursable receivables	Reimbursable receivables	1,910.9		2,005.7	Reimbursable receivables	2,005.6		2,005.7
Warehouse receivables	Warehouse receivables	1,049.0		463.2	Warehouse receivables	705.2		463.2
Short-term contract assets, net of allowance of $1.9 and $1.9		357.2		359.7
Short-term contract assets, net of allowance of $2.0 and $1.9					Short-term contract assets, net of allowance of $2.0 and $1.9	359.7		359.7
Prepaid and other	Prepaid and other	593.3		603.5	Prepaid and other	612.6		603.5
Total current assets	Total current assets	6,705.8		6,569.7	Total current assets	6,378.6		6,569.7
Property and equipment, net of accumulated depreciation of $1,030.4 and $960.5		585.5		582.9
Property and equipment, net of accumulated depreciation of $1,009.6 and $960.5					Property and equipment, net of accumulated depreciation of $1,009.6 and $960.5	589.4		582.9
Operating lease right-of-use assets	Operating lease right-of-use assets	761.3		776.3	Operating lease right-of-use assets	755.3		776.3
Goodwill	Goodwill	4,577.7		4,528.0	Goodwill	4,541.8		4,528.0
Identified intangibles, net of accumulated amortization of $499.0 and $445.8		821.1		858.5
Investments, including $802.5 and $794.9 at fair value		872.7		873.8
Identified intangibles, net of accumulated amortization of $532.4 and $445.8					Identified intangibles, net of accumulated amortization of $532.4 and $445.8	803.2		858.5
Investments, including $792.8 and $794.9 at fair value					Investments, including $792.8 and $794.9 at fair value	865.2		873.8
Long-term receivables	Long-term receivables	372.1		331.1	Long-term receivables	394.4		331.1
Deferred tax assets, net	Deferred tax assets, net	394.6		379.6	Deferred tax assets, net	382.5		379.6
Deferred compensation plan	Deferred compensation plan	559.5		517.9	Deferred compensation plan	590.3		517.9
Other	Other	175.2		175.9	Other	179.8		175.9
Total assets	Total assets	$	15,825.5	15,593.7	Total assets	$	15,480.5	15,593.7
Liabilities and Equity	Liabilities and Equity				Liabilities and Equity
Current liabilities:	Current liabilities:				Current liabilities:
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	$	1,054.6	1,236.8	Accounts payable and accrued liabilities	$	1,074.2	1,236.8
Reimbursable payables	Reimbursable payables	1,430.2		1,579.5	Reimbursable payables	1,469.4		1,579.5
Accrued compensation and benefits	Accrued compensation and benefits	1,141.2		1,749.8	Accrued compensation and benefits	1,338.8		1,749.8
Short-term borrowings	Short-term borrowings	112.1		164.2	Short-term borrowings	117.6		164.2

Short-term contract liabilities and deferred income	Short-term contract liabilities and deferred income	213.6		216.5	Short-term contract liabilities and deferred income	206.5		216.5
Short-term acquisition-related obligations	Short-term acquisition-related obligations	20.5		23.1	Short-term acquisition-related obligations	20.8		23.1
Warehouse facilities	Warehouse facilities	941.8		455.3	Warehouse facilities	574.9		455.3

Short-term operating lease liabilities	Short-term operating lease liabilities	164.3		156.4	Short-term operating lease liabilities	158.5		156.4
Other	Other	412.4		330.5	Other	464.8		330.5
Total current liabilities	Total current liabilities	5,490.7		5,912.1	Total current liabilities	5,425.5		5,912.1
Credit facility, net of debt issuance costs of $9.5 and $11.2		1,840.5		1,213.8
Credit facility, net of debt issuance costs of $8.6 and $11.2					Credit facility, net of debt issuance costs of $8.6 and $11.2	1,591.4		1,213.8
Long-term debt, net of debt issuance costs of $1.1 and $1.2	Long-term debt, net of debt issuance costs of $1.1 and $1.2	380.7		372.8	Long-term debt, net of debt issuance costs of $1.1 and $1.2	369.5		372.8
Deferred tax liabilities, net	Deferred tax liabilities, net	191.6		194.0	Deferred tax liabilities, net	161.0		194.0
Deferred compensation	Deferred compensation	518.3		492.4	Deferred compensation	542.2		492.4

Long-term acquisition-related obligations	Long-term acquisition-related obligations	58.6		76.3	Long-term acquisition-related obligations	57.6		76.3

Long-term operating lease liabilities	Long-term operating lease liabilities	766.6		775.8	Long-term operating lease liabilities	764.5		775.8
Other	Other	386.6		407.0	Other	399.1		407.0
Total liabilities	Total liabilities	9,633.6		9,444.2	Total liabilities	9,310.8		9,444.2

Redeemable noncontrolling interest	Redeemable noncontrolling interest	7.1		7.0	Redeemable noncontrolling interest	6.8		7.0
Company shareholders' equity:	Company shareholders' equity:				Company shareholders' equity:
Common stock, $0.01 par value per share, 100,000,000 shares authorized; 52,095,238 and 52,085,968 shares issued; 47,720,950 and 47,507,758 outstanding		0.5		0.5
Common stock, $0.01 par value per share, 100,000,000 shares authorized; 52,120,548 and 52,085,968 shares issued; 47,612,205 and 47,507,758 outstanding					Common stock, $0.01 par value per share, 100,000,000 shares authorized; 52,120,548 and 52,085,968 shares issued; 47,612,205 and 47,507,758 outstanding	0.5		0.5
Additional paid-in capital	Additional paid-in capital	2,015.3		2,022.6	Additional paid-in capital	2,009.5		2,022.6
Retained earnings	Retained earnings	5,567.6		5,590.4	Retained earnings	5,624.5		5,590.4
Treasury stock, at cost, 4,374,288 and 4,578,210 shares		(895.8)		(934.6)
Treasury stock, at cost, 4,508,343 and 4,578,210 shares					Treasury stock, at cost, 4,508,343 and 4,578,210 shares	(907.2)		(934.6)
Shares held in trust	Shares held in trust	(11.6)		(9.8)	Shares held in trust	(11.4)		(9.8)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(611.4)		(648.2)	Accumulated other comprehensive loss	(671.4)		(648.2)
Total Company shareholders’ equity	Total Company shareholders’ equity	6,064.6		6,020.9	Total Company shareholders’ equity	6,044.5		6,020.9
Noncontrolling interest	Noncontrolling interest	120.2		121.6	Noncontrolling interest	118.4		121.6
Total equity	Total equity	6,184.8		6,142.5	Total equity	6,162.9		6,142.5
Total liabilities, redeemable noncontrolling interest and equity	Total liabilities, redeemable noncontrolling interest and equity	$	15,825.5	15,593.7	Total liabilities, redeemable noncontrolling interest and equity	$	15,480.5	15,593.7

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

JONES LANG LASALLE INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


(in millions, except share and per share data) (unaudited)	(in millions, except share and per share data) (unaudited)	Three Months Ended June 30,			Six Months Ended June 30,			(in millions, except share and per share data) (unaudited)	Three Months Ended September 30,			Nine Months Ended September 30,
		2023		2022	2023		2022		2023		2022	2023		2022
Revenue	Revenue	$	5,052.5	5,278.4	$	9,768.0	10,079.8	Revenue	$	5,111.4	5,177.5	$	14,879.4	15,257.3
Operating expenses:	Operating expenses:							Operating expenses:
Compensation and benefits	Compensation and benefits	$	2,417.0	2,554.4	$	4,670.0	4,965.2	Compensation and benefits	$	2,434.6	2,496.2	$	7,104.6	7,461.4
Operating, administrative and other	Operating, administrative and other	2,414.6		2,407.6	4,766.1		4,548.6	Operating, administrative and other	2,467.0		2,402.0	7,233.1		6,950.6
Depreciation and amortization	Depreciation and amortization	59.9		55.4	117.4		109.8	Depreciation and amortization	59.1		55.7	176.5		165.5
Restructuring and acquisition charges	Restructuring and acquisition charges	11.8		25.9	47.5		45.4	Restructuring and acquisition charges	31.6		21.0	79.1		66.4
Total operating expenses	Total operating expenses	$	4,903.3	5,043.3	$	9,601.0	9,669.0	Total operating expenses	$	4,992.3	4,974.9	$	14,593.3	14,643.9
Operating income	Operating income	$	149.2	235.1	$	167.0	410.8	Operating income	$	119.1	202.6	$	286.1	613.4
Interest expense, net of interest income	Interest expense, net of interest income	40.5		15.7	66.8		25.9	Interest expense, net of interest income	37.1		23.2	103.9		49.1
Equity (losses) earnings	Equity (losses) earnings	(103.5)		53.6	(106.1)		72.1	Equity (losses) earnings	(11.2)		0.5	(117.3)		72.6
Other (expense) income		(1.2)		135.3	(1.1)		135.5
Income (loss) before income taxes and noncontrolling interest		4.0		408.3	(7.0)		592.5
Income tax provision (benefit)		0.8		72.8	(1.5)		113.1
Net income (loss)		3.2		335.5	(5.5)		479.4
Net income attributable to noncontrolling interest		0.7		141.6	1.2		139.9
Net income (loss) attributable to common shareholders		$	2.5	193.9	$	(6.7)	339.5
Basic earnings (loss) per common share		$	0.05	3.98	$	(0.14)	6.89
Other income								Other income	3.0		0.5	1.9		136.0
Income before income taxes and noncontrolling interest								Income before income taxes and noncontrolling interest	73.8		180.4	66.8		772.9
Income tax provision								Income tax provision	14.5		42.3	13.0		155.4
Net income								Net income	59.3		138.1	53.8		617.5
Net (loss) income attributable to noncontrolling interest								Net (loss) income attributable to noncontrolling interest	(0.4)		(2.1)	0.8		137.8
Net income attributable to common shareholders								Net income attributable to common shareholders	$	59.7	140.2	$	53.0	479.7
Basic earnings per common share								Basic earnings per common share	$	1.25	2.93	$	1.11	9.83
Basic weighted average shares outstanding (in 000's)	Basic weighted average shares outstanding (in 000's)	47,748		48,718	47,652		49,247	Basic weighted average shares outstanding (in 000's)	47,662		47,863	47,655		48,782
Diluted earnings (loss) per common share		$	0.05	3.90	$	(0.14)	6.75
Diluted earnings per common share								Diluted earnings per common share	$	1.23	2.88	$	1.10	9.65
Diluted weighted average shares outstanding (in 000's)	Diluted weighted average shares outstanding (in 000's)	48,334		49,651	47,652		50,292	Diluted weighted average shares outstanding (in 000's)	48,394		48,629	48,317		49,727
Net income (loss) attributable to common shareholders		$	2.5	193.9	$	(6.7)	339.5
Net income attributable to common shareholders								Net income attributable to common shareholders	$	59.7	140.2	$	53.0	479.7
Change in pension liabilities, net of tax	Change in pension liabilities, net of tax	(1.1)		—	(1.1)		—	Change in pension liabilities, net of tax	—		—	(1.1)		—
Foreign currency translation adjustments	Foreign currency translation adjustments	11.1		(164.4)	37.9		(188.5)	Foreign currency translation adjustments	(60.0)		(139.1)	(22.1)		(327.6)
Comprehensive income attributable to common shareholders		$	12.5	29.5	$	30.1	151.0
Comprehensive (loss) income attributable to common shareholders								Comprehensive (loss) income attributable to common shareholders	$	(0.3)	1.1	$	29.8	152.1

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

JONES LANG LASALLE INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~JUNE~~SEPTEMBER 30, 2023 AND 2022


		Company Shareholders' Equity												Company Shareholders' Equity

		Common Stock			Additional		Shares							Common Stock			Additional		Shares
(in millions, except share and per share data) (unaudited)	(in millions, except share and per share data) (unaudited)	Shares Outstanding	Amount		Paid-In	Retained	Held in	Treasury			Total		(in millions, except share and per share data) (unaudited)	Shares Outstanding	Amount		Paid-In	Retained	Held in	Treasury			Total
					Capital	Earnings	Trust	Stock	AOCI(1)	NCI(2)	Equity						Capital	Earnings	Trust	Stock	AOCI(1)	NCI(2)	Equity
December 31, 2022	December 31, 2022	47,507,758	$	0.5	2,022.6	5,590.4	(9.8)	(934.6)	(648.2)	121.6	$	6,142.5	December 31, 2022	47,507,758	$	0.5	2,022.6	5,590.4	(9.8)	(934.6)	(648.2)	121.6	$	6,142.5
Net (loss) income	Net (loss) income	—	—		—	(9.2)	—	—	—	0.5	(8.7)		Net (loss) income	—	—		—	(9.2)	—	—	—	0.5	(8.7)
Shares issued under stock-based compensation programs	Shares issued under stock-based compensation programs	146,727	—		(60.3)	(14.5)	—	81.8	—	—	7.0		Shares issued under stock-based compensation programs	146,727	—		(60.3)	(14.5)	—	81.8	—	—	7.0
Shares repurchased for payment of taxes on stock-based compensation	Shares repurchased for payment of taxes on stock-based compensation	(45,281)	—		2.3	—	—	(30.7)	—	—	(28.4)		Shares repurchased for payment of taxes on stock-based compensation	(45,281)	—		2.3	—	—	(30.7)	—	—	(28.4)
Amortization of stock-based compensation	Amortization of stock-based compensation	—	—		16.7	—	—	—	—	—	16.7		Amortization of stock-based compensation	—	—		16.7	—	—	—	—	—	16.7

Foreign currency translation adjustments	Foreign currency translation adjustments	—	—		—	—	—	—	26.8	—	26.8		Foreign currency translation adjustments	—	—		—	—	—	—	26.8	—	26.8
Decrease in amounts attributable to noncontrolling interest	Decrease in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	(0.7)	(0.7)		Decrease in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	(0.7)	(0.7)

March 31, 2023	March 31, 2023	47,609,204	$	0.5	1,981.3	5,566.7	(9.8)	(883.5)	(621.4)	121.4	$	6,155.2	March 31, 2023	47,609,204	$	0.5	1,981.3	5,566.7	(9.8)	(883.5)	(621.4)	121.4	$	6,155.2

Net income(3)	Net income(3)	—	—		—	2.5	—	—	—	0.6	3.1		Net income(3)	—	—		—	2.5	—	—	—	0.6	3.1
Shares issued under stock-based compensation programs	Shares issued under stock-based compensation programs	288,834	—		(2.3)	(1.6)	—	7.1	—	—	3.2		Shares issued under stock-based compensation programs	288,834	—		(2.3)	(1.6)	—	7.1	—	—	3.2
Shares repurchased for payment of taxes on stock-based compensation	Shares repurchased for payment of taxes on stock-based compensation	(104,766)	—		—	—	—	0.1	—	—	0.1		Shares repurchased for payment of taxes on stock-based compensation	(104,766)	—		—	—	—	0.1	—	—	0.1
Amortization of stock-based compensation	Amortization of stock-based compensation	—	—		36.3	—	—	—	—	—	36.3		Amortization of stock-based compensation	—	—		36.3	—	—	—	—	—	36.3
Shares held in trust	Shares held in trust	—	—		—	—	(1.8)	—	—	—	(1.8)		Shares held in trust	—	—		—	—	(1.8)	—	—	—	(1.8)
Repurchase of common stock	Repurchase of common stock	(72,322)	—		—	—	—	(19.5)	—	—	(19.5)		Repurchase of common stock	(72,322)	—		—	—	—	(19.5)	—	—	(19.5)
Change in pension liabilities, net of tax	Change in pension liabilities, net of tax	—	—		—	—	—	—	(1.1)	—	(1.1)		Change in pension liabilities, net of tax	—	—		—	—	—	—	(1.1)	—	(1.1)
Foreign currency translation adjustments	Foreign currency translation adjustments	—	—		—	—	—	—	11.1	—	11.1		Foreign currency translation adjustments	—	—		—	—	—	—	11.1	—	11.1
Decrease in amounts attributable to noncontrolling interest	Decrease in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	(1.8)	(1.8)		Decrease in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	(1.8)	(1.8)
June 30, 2023	June 30, 2023	47,720,950	$	0.5	2,015.3	5,567.6	(11.6)	(895.8)	(611.4)	120.2	$	6,184.8	June 30, 2023	47,720,950	$	0.5	2,015.3	5,567.6	(11.6)	(895.8)	(611.4)	120.2	$	6,184.8
Net income (loss)(3)													Net income (loss)(3)	—	—		—	59.7	—	—	—	(0.1)	59.6
Shares issued under stock-based compensation programs													Shares issued under stock-based compensation programs	67,398	—		(12.3)	(2.8)	—	13.8	—	—	(1.3)
Shares repurchased for payment of taxes on stock-based compensation													Shares repurchased for payment of taxes on stock-based compensation	(25,983)	—		—	—	—	(5.3)	—	—	(5.3)
Amortization of stock-based compensation													Amortization of stock-based compensation	—	—		6.5	—	—	—	—	—	6.5
Shares held in trust													Shares held in trust	—	—		—	—	0.2	—	—	—	0.2
Repurchase of common stock													Repurchase of common stock	(150,160)	—		—	—	—	(19.9)	—	—	(19.9)

Foreign currency translation adjustments													Foreign currency translation adjustments	—	—		—	—	—	—	(60.0)	—	(60.0)
Decrease in amounts attributable to noncontrolling interest													Decrease in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	(1.7)	(1.7)
September 30, 2023													September 30, 2023	47,612,205	$	0.5	2,009.5	5,624.5	(11.4)	(907.2)	(671.4)	118.4	$	6,162.9

(1) AOCI: Accumulated other comprehensive income (loss)

(2) NCI: Noncontrolling interest

(3) Excludes net (loss) income attributable to redeemable noncontrolling interest of $(0.3) million and $0.1 million for the three months ended September 30, 2023 and June 30, 2023.

Table of Contents

JONES LANG LASALLE INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~JUNE~~SEPTEMBER 30, 2023 AND 2022


		Company Shareholders' Equity												Company Shareholders' Equity

		Common Stock			Additional		Shares							Common Stock			Additional		Shares
(in millions, except share and per share data) (unaudited)	(in millions, except share and per share data) (unaudited)	Shares Outstanding	Amount		Paid-In	Retained	Held in	Treasury			Total		(in millions, except share and per share data) (unaudited)	Shares Outstanding	Amount		Paid-In	Retained	Held in	Treasury			Total
					Capital	Earnings	Trust	Stock	AOCI(1)	NCI(2)	Equity						Capital	Earnings	Trust	Stock	AOCI(1)	NCI(2)	Equity
December 31, 2021	December 31, 2021	50,024,139	$	0.5	2,053.7	4,937.6	(5.2)	(406.3)	(395.4)	228.5	$	6,413.4	December 31, 2021	50,024,139	$	0.5	2,053.7	4,937.6	(5.2)	(406.3)	(395.4)	228.5	$	6,413.4
Net income (loss)	Net income (loss)	—	—		—	145.6	—	—	—	(1.7)	143.9		Net income (loss)	—	—		—	145.6	—	—	—	(1.7)	143.9
Shares issued under stock-based compensation programs	Shares issued under stock-based compensation programs	305,435	—		(3.6)	—	—	5.5	—	—	1.9		Shares issued under stock-based compensation programs	305,435	—		(3.6)	—	—	5.5	—	—	1.9
Shares repurchased for payment of taxes on stock-based compensation	Shares repurchased for payment of taxes on stock-based compensation	(105,295)	—		(1.9)	—	—	(1.9)	—	—	(3.8)		Shares repurchased for payment of taxes on stock-based compensation	(105,295)	—		(1.9)	—	—	(1.9)	—	—	(3.8)
Amortization of stock-based compensation	Amortization of stock-based compensation	—	—		18.6	—	—	—	—	—	18.6		Amortization of stock-based compensation	—	—		18.6	—	—	—	—	—	18.6

Shares held in trust	Shares held in trust	—	—		—	—	0.1	—	—	—	0.1		Shares held in trust	—	—		—	—	0.1	—	—	—	0.1

Repurchase of common stock	Repurchase of common stock	(615,351)	—		—	—	—	(150.0)	—	—	(150.0)		Repurchase of common stock	(615,351)	—		—	—	—	(150.0)	—	—	(150.0)

Foreign currency translation adjustments	Foreign currency translation adjustments	—	—		—	—	—	—	(24.1)	—	(24.1)		Foreign currency translation adjustments	—	—		—	—	—	—	(24.1)	—	(24.1)
Increase in amounts attributable to noncontrolling interest	Increase in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	15.2	15.2		Increase in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	15.2	15.2

March 31, 2022	March 31, 2022	49,608,928	$	0.5	2,066.8	5,083.2	(5.1)	(552.7)	(419.5)	242.0	$	6,415.2	March 31, 2022	49,608,928	$	0.5	2,066.8	5,083.2	(5.1)	(552.7)	(419.5)	242.0	$	6,415.2
Net income(3)													Net income(3)	—	—		—	193.9	—	—	—	141.7	335.6
Shares issued under stock-based compensation programs													Shares issued under stock-based compensation programs	36,251	—		(25.4)	(1.7)	—	42.2	—	—	15.1
Shares repurchased for payment of taxes on stock-based compensation													Shares repurchased for payment of taxes on stock-based compensation	(6,592)	—		(16.5)	—	—	(16.5)	—	—	(33.0)
Amortization of stock-based compensation													Amortization of stock-based compensation	—	—		25.8	—	—	—	—	—	25.8

Repurchase of common stock													Repurchase of common stock	(1,397,915)	—		—	—	—	(297.7)	—	—	(297.7)
Foreign currency translation adjustments													Foreign currency translation adjustments	—	—		—	—	—	—	(164.4)	—	(164.4)
Decrease in amounts attributable to noncontrolling interest													Decrease in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	(149.9)	(149.9)

Net income(3)		—	—		—	193.9	—	—	—	141.7	335.6
June 30, 2022													June 30, 2022	48,240,672	$	0.5	2,050.7	5,275.4	(5.1)	(824.7)	(583.9)	233.8	$	6,146.7
Net income (loss)(3)													Net income (loss)(3)	—	—		—	140.2	—	—	—	(2.0)	138.2
Shares issued under stock-based compensation programs	Shares issued under stock-based compensation programs	36,251	—		(25.4)	(1.7)	—	42.2	—	—	15.1		Shares issued under stock-based compensation programs	209,110	—		(23.6)	—	—	40.6	—	—	17.0

Shares repurchased for payment of taxes on stock-based compensation	Shares repurchased for payment of taxes on stock-based compensation	(6,592)	—		(16.5)	—	—	(16.5)	—	—	(33.0)		Shares repurchased for payment of taxes on stock-based compensation	(85,659)	—		(17.9)	—	—	(17.9)	—	—	(35.8)
Amortization of stock-based compensation	Amortization of stock-based compensation	—	—		25.8	—	—	—	—	—	25.8		Amortization of stock-based compensation	—	—		25.3	—	—	—	—	—	25.3

Repurchase of common stock	Repurchase of common stock	(1,397,915)	—		—	—	—	(297.7)	—	—	(297.7)		Repurchase of common stock	(847,549)	—		—	—	—	(148.9)	—	—	(148.9)

Foreign currency translation adjustments	Foreign currency translation adjustments	—	—		—	—	—	—	(164.4)	—	(164.4)		Foreign currency translation adjustments	—	—		—	—	—	—	(139.1)	—	(139.1)
Decrease in amounts attributable to noncontrolling interest	Decrease in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	(149.9)	(149.9)		Decrease in amounts attributable to noncontrolling interest	—	—		—	—	—	—	—	(1.2)	(1.2)
June 30, 2022		48,240,672	$	0.5	2,050.7	5,275.4	(5.1)	(824.7)	(583.9)	233.8	$	6,146.7
September 30, 2022													September 30, 2022	47,516,574	$	0.5	2,034.5	5,415.6	(5.1)	(950.9)	(723.0)	230.6	$	6,002.2

(1) AOCI: Accumulated other comprehensive income (loss)

(2) NCI: Noncontrolling interest

(3) Excludes net loss attributable to redeemable noncontrolling interest of $0.1 million for both the three months ended September 30, 2022 and June 30, 2022.

See accompanying notes to Condensed Consolidated Financial Statements.

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JONES LANG LASALLE INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


		Six Months Ended June 30,				Nine Months Ended September 30,
(in millions) (unaudited)	(in millions) (unaudited)	2023		2022	(in millions) (unaudited)	2023		2022
Cash flows from operating activities:	Cash flows from operating activities:				Cash flows from operating activities:
Net (loss) income		$	(5.5)	479.4
Reconciliation of net (loss) income to net cash used in operating activities:
Net income					Net income	$	53.8	617.5
Reconciliation of net income to net cash used in operating activities:					Reconciliation of net income to net cash used in operating activities:
Depreciation and amortization	Depreciation and amortization	117.4		109.8	Depreciation and amortization	176.5		165.5
Equity losses (earnings)	Equity losses (earnings)	106.1		(72.1)	Equity losses (earnings)	117.3		(72.6)
Net loss (gain) on dispositions	Net loss (gain) on dispositions	1.8		(134.8)	Net loss (gain) on dispositions	0.5		(134.8)
Distributions of earnings from investments	Distributions of earnings from investments	6.0		9.9	Distributions of earnings from investments	8.2		14.9
Provision for loss on receivables and other assets	Provision for loss on receivables and other assets	19.0		11.8	Provision for loss on receivables and other assets	21.7		17.4
Amortization of stock-based compensation	Amortization of stock-based compensation	53.0		44.4	Amortization of stock-based compensation	59.5		69.7
Net non-cash mortgage servicing rights and mortgage banking derivative activity	Net non-cash mortgage servicing rights and mortgage banking derivative activity	2.4		(7.6)	Net non-cash mortgage servicing rights and mortgage banking derivative activity	9.5		(12.8)
Accretion of interest and amortization of debt issuance costs	Accretion of interest and amortization of debt issuance costs	2.1		2.5	Accretion of interest and amortization of debt issuance costs	3.1		3.7
Other, net	Other, net	3.6		2.6	Other, net	15.4		4.2
Change in:	Change in:				Change in:
Receivables	Receivables	137.7		64.6	Receivables	162.9		(49.7)
Reimbursable receivables and reimbursable payables	Reimbursable receivables and reimbursable payables	(51.0)		(94.2)	Reimbursable receivables and reimbursable payables	(110.7)		(162.6)
Prepaid expenses and other assets	Prepaid expenses and other assets	(46.5)		(21.3)	Prepaid expenses and other assets	(104.4)		(74.6)
Deferred tax assets, net	Deferred tax assets, net	(17.3)		78.8	Deferred tax assets, net	(36.0)		95.0
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	(216.5)		(339.6)	Accounts payable and accrued liabilities	(174.5)		(390.7)
Accrued compensation	Accrued compensation	(591.6)		(673.6)	Accrued compensation	(356.4)		(492.0)
Net cash used in operating activities	Net cash used in operating activities	(479.3)		(539.4)	Net cash used in operating activities	(153.6)		(401.9)
Cash flows from investing activities:	Cash flows from investing activities:				Cash flows from investing activities:
Net capital additions – property and equipment	Net capital additions – property and equipment	(88.2)		(86.9)	Net capital additions – property and equipment	(137.7)		(136.0)
Net investment asset activity (less than wholly-owned)	Net investment asset activity (less than wholly-owned)	—		137.0	Net investment asset activity (less than wholly-owned)	—		132.4

Business acquisitions, net of cash acquired	Business acquisitions, net of cash acquired	(13.6)		(2.0)	Business acquisitions, net of cash acquired	(13.6)		(5.7)

Capital contributions to investments	Capital contributions to investments	(66.2)		(121.4)	Capital contributions to investments	(86.8)		(142.3)
Distributions of capital from investments	Distributions of capital from investments	12.7		13.1	Distributions of capital from investments	21.5		19.1
Other, net	Other, net	(5.4)		(2.9)	Other, net	(3.8)		(15.3)
Net cash used in investing activities	Net cash used in investing activities	(160.7)		(63.1)	Net cash used in investing activities	(220.4)		(147.8)
Cash flows from financing activities:	Cash flows from financing activities:				Cash flows from financing activities:

Proceeds from borrowings under credit facility	Proceeds from borrowings under credit facility	4,478.0		4,060.0	Proceeds from borrowings under credit facility	5,969.0		5,756.0
Repayments of borrowings under credit facility	Repayments of borrowings under credit facility	(3,853.0)		(2,835.0)	Repayments of borrowings under credit facility	(5,594.0)		(4,306.0)

Net repayments of short-term borrowings		(55.3)		(12.5)
Repayment of senior notes					Repayment of senior notes	—		(275.0)
Net (repayments of) proceeds from short-term borrowings					Net (repayments of) proceeds from short-term borrowings	(46.4)		109.6
Payments of deferred business acquisition obligations and earn-outs	Payments of deferred business acquisition obligations and earn-outs	(21.8)		(9.2)	Payments of deferred business acquisition obligations and earn-outs	(22.6)		(10.4)

Repurchase of common stock	Repurchase of common stock	(19.5)		(447.7)	Repurchase of common stock	(39.4)		(596.6)

Noncontrolling interest distributions, net	Noncontrolling interest distributions, net	—		(134.6)	Noncontrolling interest distributions, net	(4.2)		(135.8)
Other, net	Other, net	(24.5)		(19.7)	Other, net	(31.2)		(41.3)
Net cash provided by financing activities	Net cash provided by financing activities	503.9		601.3	Net cash provided by financing activities	231.2		500.5
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	3.8		(37.6)	Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	(9.6)		(63.6)
Net change in cash, cash equivalents and restricted cash	Net change in cash, cash equivalents and restricted cash	(132.3)		(38.8)	Net change in cash, cash equivalents and restricted cash	(152.4)		(112.8)
Cash, cash equivalents and restricted cash, beginning of the period	Cash, cash equivalents and restricted cash, beginning of the period	746.0		841.6	Cash, cash equivalents and restricted cash, beginning of the period	746.0		841.6
Cash, cash equivalents and restricted cash, end of the period	Cash, cash equivalents and restricted cash, end of the period	$	613.7	802.8	Cash, cash equivalents and restricted cash, end of the period	$	593.6	728.8
Supplemental disclosure of cash flow information:	Supplemental disclosure of cash flow information:				Supplemental disclosure of cash flow information:
Restricted cash, beginning of period	Restricted cash, beginning of period	$	226.7	247.9	Restricted cash, beginning of period	$	226.7	247.9
Restricted cash, end of period	Restricted cash, end of period	211.2		234.8	Restricted cash, end of period	204.1		239.4
Cash paid during the period for:	Cash paid during the period for:				Cash paid during the period for:
Interest	Interest	$	65.1	26.4	Interest	$	105.6	41.2
Income taxes, net of refunds	Income taxes, net of refunds	103.1		201.6	Income taxes, net of refunds	126.4		283.7
Operating leases	Operating leases	96.2		91.5	Operating leases	146.4		137.5
Non-cash activities:	Non-cash activities:				Non-cash activities:
Business acquisitions (including contingent consideration)	Business acquisitions (including contingent consideration)	$	—	2.0	Business acquisitions (including contingent consideration)	$	—	5.3
Non-cash consideration received for disposition	Non-cash consideration received for disposition	—		15.8	Non-cash consideration received for disposition	—		15.8

Deferred business acquisition obligations	Deferred business acquisition obligations	—		1.4	Deferred business acquisition obligations	—		3.1

See accompanying notes to Condensed Consolidated Financial Statements.

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JONES LANG LASALLE INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.INTERIM INFORMATION

Readers of this quarterly report should refer to the audited financial statements of Jones Lang LaSalle Incorporated ("JLL," which may also be referred to as "the ~~Company" or as~~Company," "we," "us" or "our") for the year ended December 31, 2022, which are included in our 2022 Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission ("SEC") and also available on our website (www.jll.com), since we have omitted from this quarterly report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to the "Summary of Critical Accounting Policies and Estimates" section within Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and to Note 2, Summary of Significant Accounting Policies, in the Notes to Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for further discussion of our significant accounting policies and estimates.

Our Condensed Consolidated Financial Statements as of ~~June~~September 30, 2023, and for the periods ended ~~June~~September 30, 2023 and 2022, are unaudited. In the opinion of management, we have included all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the Condensed Consolidated Financial Statements for these interim periods.

Historically, our quarterly revenue and profits have tended to increase from quarter to quarter as the year progresses. This is the result of a general focus in the real estate industry on completing transactions by calendar year end, while certain expenses are recognized evenly throughout the year. Growth in our Property Management and Workplace Management businesses as well as other annuity-based services has, to an extent, lessened the seasonality in our revenue and profits during the past several years. Within our Markets Advisory and Capital Markets segments, revenue from transaction-based activities is driven by the size and timing of our clients' transactions and can fluctuate significantly from period to period. Our LaSalle Investment Management ("LaSalle") segment generally earns investment-generated performance fees on clients' real estate investment returns when assets are sold, the timing of which is geared toward the benefit of our clients, as well as co-investment equity gains and losses, primarily dependent on underlying valuations.

A significant portion of our compensation and benefits expense is from incentive compensation plans, which we generally accrue throughout the year based on progress toward annual performance targets. This process can result in significant fluctuations in quarterly compensation and benefits expense from period to period. Non-variable operating expenses, which we recognize when incurred during the year, are relatively constant on a quarterly basis.

We provide for the effects of income taxes on interim financial statements based on our estimate of the effective tax rate for the full year, which we base on forecasted income by country and expected enacted tax rates. As required, we adjust for the impact of discrete items in the quarters in which they occur. Changes in the geographic mix of income can impact our estimated effective tax rate.

As a result of the items mentioned above, the results for the periods ended ~~June~~September 30 are not fully indicative of what our results will be for the full fiscal year.

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2.NEW ACCOUNTING STANDARDS

Recently adopted accounting guidance

In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022‑04, Liabilities-Supplier Finance Programs (Subtopic 450-50): Disclosure of Supplier Finance Program Obligations, which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about their outstanding obligations at the end of the reporting period. The guidance is intended to address requests from stakeholders for information about an entity’s use of supplier finance programs and their effect on the entity’s working capital, liquidity and cash flows. We adopted this guidance effective January 1, 2023, and the adoption did not impact our financial statements and related disclosures.

3.REVENUE RECOGNITION

Capital Markets revenue excluded from the scope of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC Topic 606")

Our mortgage banking and servicing operations, comprised of (i) all Loan Servicing revenue and (ii) activities related to mortgage servicing rights ("MSR" or "MSRs") and loan origination fees (included in Investment Sales, Debt/Equity Advisory and Other), are not considered revenue from contracts with customers, and accordingly are excluded from the scope of ASC Topic 606. Such out-of-scope revenue is presented below.


		Three Months Ended June 30,			Six Months Ended June 30,				Three Months Ended September 30,			Nine Months Ended September 30,
(in millions)	(in millions)	2023		2022	2023		2022	(in millions)	2023		2022	2023		2022
Revenue excluded from scope of ASC Topic 606	Revenue excluded from scope of ASC Topic 606	$	77.2	76.5	$	143.4	146.5	Revenue excluded from scope of ASC Topic 606	$	68.1	76.1	$	211.5	222.6

Contract assets and liabilities

Our contract assets, net of allowance, are included in Short-term contract assets and Other assets and our contract liabilities are included in Short-term contract liabilities and deferred income on our Condensed Consolidated Balance Sheets. The majority of contract liabilities are recognized as revenue within 90 days. Such contract assets and liabilities are presented below.


(in millions)	(in millions)	June 30, 2023		December 31, 2022	(in millions)	September 30, 2023		December 31, 2022
Contract assets, gross	Contract assets, gross	$	427.8	447.0	Contract assets, gross	$	427.4	447.0
Contract asset allowance	Contract asset allowance	(2.2)		(2.3)	Contract asset allowance	(2.2)		(2.3)
Contract assets, net	Contract assets, net	$	425.6	444.7	Contract assets, net	$	425.2	444.7

Contract liabilities	Contract liabilities	$	145.0	151.4	Contract liabilities	$	134.0	151.4

Remaining performance obligations

Remaining performance obligations represent the aggregate transaction price for contracts where our performance obligations have not yet been satisfied. As of ~~June~~September 30, 2023, the aggregate amount of transaction price allocated to remaining performance obligations represented less than 5% of our total revenue. In accordance with ASC Topic 606, excluded from the aforementioned remaining performance obligations are (i) amounts attributable to contracts expected to be completed within 12 months and (ii) variable consideration for services performed as a series of daily performance obligations, such as facilities management, property management and LaSalle contracts. A significant portion of our customer contracts, which are not expected to be fulfilled within 12 months, are represented by the contracts within these businesses.

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4. BUSINESS SEGMENTS

We manage and report our operations as five global business segments:

(1) Markets Advisory,

(2) Capital Markets,

(3) Work Dynamics,

(4) JLL Technologies and

(5) LaSalle.

Markets Advisory offers a wide range of real estate services, including agency leasing and tenant representation, property management, advisory and consulting services. Capital Markets service offerings include investment sales, debt and equity advisory, value and ~~debt~~risk advisory, and loan ~~servicing and valuation advisory.~~servicing. Our Work Dynamics business provides a broad suite of integrated services to occupiers of real estate, including facility and project management, as well as portfolio and other services. Our JLL Technologies segment offers software products, solutions and services, while LaSalle provides investment management services on a global basis to institutional investors and high-net-worth individuals.

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 functional costs across the globe, which we allocate to the business segments using an expense-specific driver-based methodology.

Adjusted EBITDA does not include (i) Restructuring and acquisition charges, (ii) gain/loss on disposal, (iii) interest on employee loans, net of forgiveness, (iv) net non-cash MSR and mortgage banking derivative activity, (v) Interest expense, net of interest income, (vi) Income tax ~~(benefit)~~ provision and (vii) Depreciation and amortization, which are otherwise included in Net income on the Condensed Consolidated Statements of Comprehensive Income.

The Chief Operating Decision Maker ("CODM") of JLL measures and evaluates the segment results based on Adjusted EBITDA for purposes of making decisions about allocating resources and assessing performance. Our CODM is not provided with total asset information by segment and accordingly does not measure or allocate resources based on total assets information. Therefore, we have not disclosed asset information by segment.

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Summarized financial information by business segment is as follows.

Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2023 2022 2023 2022
Markets Advisory
Leasing $ 591.4 708.4 $ 1,078.4 1,309.3
Property Management 409.9 378.2 810.1 748.7
Advisory, Consulting and Other 24.1 31.6 43.3 59.7
Revenue $ 1,025.4 1,118.2 $ 1,931.8 2,117.7
Depreciation and amortization(1)
$ 16.5 16.3 $ 32.6 33.4
Equity (losses) earnings $ (0.1) 0.4 $ 0.2 0.9
Adjusted EBITDA $ 99.4 134.0 $ 171.0 245.2
Capital Markets
Investment Sales, Debt/Equity Advisory and Other $ 319.5 549.7 $ 560.1 1,025.8
Valuation Advisory 89.5 94.4 168.6 179.0
Loan Servicing 39.0 40.4 76.4 80.3
Revenue $ 448.0 684.5 $ 805.1 1,285.1
Depreciation and amortization $ 16.2 15.4 $ 32.1 31.0
Equity earnings $ 4.8 0.6 $ 5.4 1.4
Adjusted EBITDA $ 36.0 126.7 $ 46.7 244.9
Work Dynamics
Workplace Management $ 2,553.4 2,434.0 $ 5,050.6 4,754.4
Project Management 703.2 754.8 1,379.5 1,367.1
Portfolio Services and Other 118.0 121.7 220.7 222.6
Revenue $ 3,374.6 3,310.5 $ 6,650.8 6,344.1
Depreciation and amortization $ 19.9 17.0 $ 39.2 33.5
Equity earnings $ 0.8 0.9 $ 1.2 1.2
Adjusted EBITDA $ 56.2 57.6 $ 81.9 92.8
JLL Technologies
Revenue $ 60.6 50.7 $ 122.0 100.1
Depreciation and amortization $ 4.1 3.9 $ 8.0 7.7
Equity (losses) earnings $ (103.9) 44.7 $ (99.0) 63.5
Adjusted EBITDA $ (105.2) 12.9 $ (118.5) 0.6
LaSalle
Advisory fees $ 103.1 103.2 $ 203.6 200.2
Transaction fees and other 5.0 10.3 15.4 27.4
Incentive fees 35.8 1.0 39.3 5.2
Revenue $ 143.9 114.5 $ 258.3 232.8
Depreciation and amortization $ 2.3 1.8 $ 3.6 3.2
Equity (losses) earnings $ (5.1) 7.0 $ (13.9) 5.1
Adjusted EBITDA $ 29.7 27.8 $ 44.0 49.1


	Three Months Ended September 30,			Nine Months Ended September 30,
(in millions)	2023		2022	2023		2022
Markets Advisory
Leasing	$	547.7	703.3	$	1,626.1	2,012.6
Property Management	419.2		377.8	1,229.3		1,126.5
Advisory, Consulting and Other	25.5		30.4	68.8		90.1
Revenue	$	992.4	1,111.5	$	2,924.2	3,229.2
Depreciation and amortization(1)	$	15.9	16.6	$	48.5	50.0
Equity earnings (losses)	$	0.1	(0.2)	$	0.3	0.7
Adjusted EBITDA	$	85.1	132.1	$	256.1	377.3

Capital Markets
Investment Sales, Debt/Equity Advisory and Other	$	310.2	465.0	$	870.3	1,490.8
Value and Risk Advisory	87.5		89.7	256.1		268.7
Loan Servicing	38.1		40.5	114.5		120.8
Revenue	$	435.8	595.2	$	1,240.9	1,880.3
Depreciation and amortization	$	16.4	15.2	$	48.5	46.2
Equity earnings	$	0.7	0.7	$	6.1	2.1
Adjusted EBITDA	$	50.3	83.2	$	97.0	328.1

Work Dynamics
Workplace Management	$	2,637.1	2,429.1	$	7,687.7	7,183.5
Project Management	747.0		748.3	2,126.5		2,115.4
Portfolio Services and Other	130.1		112.4	350.8		335.0
Revenue	$	3,514.2	3,289.8	$	10,165.0	9,633.9
Depreciation and amortization	$	19.7	17.6	$	58.9	51.1
Equity earnings	$	0.1	0.1	$	1.3	1.3
Adjusted EBITDA	$	61.6	53.4	$	143.5	146.2

JLL Technologies
Revenue	$	58.9	56.5	$	180.9	156.6
Depreciation and amortization	$	3.9	3.7	$	11.9	11.4
Equity (losses) earnings	$	(3.0)	1.0	$	(102.0)	64.5
Adjusted EBITDA	$	(8.7)	(15.3)	$	(127.2)	(14.7)

LaSalle
Advisory fees	$	102.7	102.6	$	306.3	302.8
Transaction fees and other	7.4		10.0	22.8		37.4
Incentive fees	—		11.9	39.3		17.1
Revenue	$	110.1	124.5	$	368.4	357.3
Depreciation and amortization	$	2.2	1.6	$	5.8	4.8
Equity (losses) earnings	$	(9.1)	(1.1)	$	(23.0)	4.0
Adjusted EBITDA	$	16.9	22.8	$	60.9	71.9

(1) Excludes the noncontrolling interest portion of amortization of acquisition-related intangibles which is not attributable to common shareholders.

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The following table is a reconciliation of Adjusted EBITDA to Net income ~~(loss)~~ attributable to common shareholders.


		Three Months Ended June 30,			Six Months Ended June 30,				Three Months Ended September 30,			Nine Months Ended September 30,
(in millions)	(in millions)	2023		2022	2023		2022	(in millions)	2023		2022	2023		2022
Adjusted EBITDA - Markets Advisory	Adjusted EBITDA - Markets Advisory	$	99.4	134.0	$	171.0	245.2	Adjusted EBITDA - Markets Advisory	$	85.1	132.1	$	256.1	377.3
Adjusted EBITDA - Capital Markets	Adjusted EBITDA - Capital Markets	36.0		126.7	46.7		244.9	Adjusted EBITDA - Capital Markets	50.3		83.2	97.0		328.1
Adjusted EBITDA - Work Dynamics	Adjusted EBITDA - Work Dynamics	56.2		57.6	81.9		92.8	Adjusted EBITDA - Work Dynamics	61.6		53.4	143.5		146.2
Adjusted EBITDA - JLL Technologies	Adjusted EBITDA - JLL Technologies	(105.2)		12.9	(118.5)		0.6	Adjusted EBITDA - JLL Technologies	(8.7)		(15.3)	(127.2)		(14.7)
Adjusted EBITDA - LaSalle	Adjusted EBITDA - LaSalle	29.7		27.8	44.0		49.1	Adjusted EBITDA - LaSalle	16.9		22.8	60.9		71.9
Adjusted EBITDA - Consolidated	Adjusted EBITDA - Consolidated	$	116.1	359.0	$	225.1	632.6	Adjusted EBITDA - Consolidated	$	205.2	276.2	$	430.3	908.8
Adjustments:	Adjustments:							Adjustments:
Restructuring and acquisition charges	Restructuring and acquisition charges	$	(11.8)	(25.9)	$	(47.5)	(45.4)	Restructuring and acquisition charges	$	(31.6)	(21.0)	$	(79.1)	(66.4)
Net loss on disposition		(1.8)		(7.5)	(1.8)		(7.5)
Net gain (loss) on disposition								Net gain (loss) on disposition	1.3		—	(0.5)		(7.5)
Interest on employee loans, net of forgiveness	Interest on employee loans, net of forgiveness	0.9		—	0.7		—	Interest on employee loans, net of forgiveness	1.6		—	2.3		—
Net non-cash MSR and mortgage banking derivative activity	Net non-cash MSR and mortgage banking derivative activity	(0.6)		11.2	(2.4)		7.6	Net non-cash MSR and mortgage banking derivative activity	(7.1)		5.2	(9.5)		12.8
Interest expense, net of interest income	Interest expense, net of interest income	(40.5)		(15.7)	(66.8)		(25.9)	Interest expense, net of interest income	(37.1)		(23.2)	(103.9)		(49.1)
Income tax (provision) benefit		(0.8)		(72.8)	1.5		(113.1)
Income tax provision								Income tax provision	(14.5)		(42.3)	(13.0)		(155.4)
Depreciation and amortization(1)	Depreciation and amortization(1)	(59.0)		(54.4)	(115.5)		(108.8)	Depreciation and amortization(1)	(58.1)		(54.7)	(173.6)		(163.5)
Net income (loss) attributable to common shareholders		$	2.5	193.9	$	(6.7)	339.5
Net income attributable to common shareholders								Net income attributable to common shareholders	$	59.7	140.2	$	53.0	479.7

(1) This adjustment excludes the noncontrolling interest portion of amortization of acquisition-related intangibles which is not attributable to common shareholders.

5.BUSINESS COMBINATIONS, GOODWILL AND OTHER INTANGIBLE ASSETS

2023 Business Combinations Activity

During the ~~six~~nine months ended ~~June~~September 30, 2023, we completed one strategic acquisition. This strategic acquisition is presented below.


Acquired Company	Quarter of Acquisition	Country	Primary Segment

Kensington Capital Advisors (KCA)	Q2	United States	Capital Markets

Aggregate terms of our acquisition included: (1) cash paid at closing of $13.6 million and (2) prior 50.0% ownership previously accounted for as an equity method investment which had a fair value of $10.0 million.

A preliminary allocation of purchase consideration resulted in goodwill of $18.7 million, identifiable intangibles of $2.1 million and other net assets (acquired assets less assumed liabilities) of $2.8 million. As of ~~June~~September 30, 2023, we have not completed our analysis to assign fair values to all of the identifiable intangible and tangible assets acquired and, therefore, we may further refine the purchase price allocations for this acquisition during the open measurement period.

During the ~~six~~nine months ended ~~June~~September 30, 2023, we paid ~~$22.0~~$22.8 million for deferred business acquisition and earn-out obligations for acquisitions completed in prior years.

2022 Business Combinations Activity

During the ~~six~~nine months ended ~~June~~September 30, 2022, we completed no strategic acquisitions.

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Earn-Out Payments


($ in millions)	($ in millions)	June 30, 2023		December 31, 2022	($ in millions)	September 30, 2023		December 31, 2022
Number of acquisitions with earn-out payments subject to the achievement of certain performance criteria	Number of acquisitions with earn-out payments subject to the achievement of certain performance criteria	16		17	Number of acquisitions with earn-out payments subject to the achievement of certain performance criteria	16		17
Maximum earn-out payments (undiscounted)	Maximum earn-out payments (undiscounted)	$	105.0	114.6	Maximum earn-out payments (undiscounted)	$	103.8	114.6
Short-term earn-out liabilities (fair value)(1)	Short-term earn-out liabilities (fair value)(1)	12.4		5.0	Short-term earn-out liabilities (fair value)(1)	13.4		5.0
Long-term earn-out liabilities (fair value)(1)	Long-term earn-out liabilities (fair value)(1)	51.9		68.3	Long-term earn-out liabilities (fair value)(1)	50.8		68.3

(1) Included in Short-term and Long-term acquisition-related obligations on the Condensed Consolidated Balance Sheets.

Assuming the achievement of the applicable performance criteria, we anticipate making these earn-out payments over the next five years. Refer to Note 8, Fair Value Measurements, and Note 11, Restructuring and Acquisition Charges, for additional discussion of our earn-out liabilities.

Goodwill and Other Intangible Assets

Goodwill and unamortized intangibles as of ~~June~~September 30, 2023 consisted of: (1) goodwill of ~~$4,577.7~~$4,541.8 million, (2) identifiable intangibles of ~~$772.1~~$803.2 million amortized over their remaining finite useful lives and (3) ~~$49.0~~$47.8 million of identifiable intangibles with indefinite useful lives that are not amortized. Notable portions of our goodwill and unamortized intangibles are denominated in currencies other than the U.S. dollar, which means a portion of the movements in the reported book value of these balances is attributable to movements in foreign currency exchange rates.

The following table details, by reporting segment, movements in goodwill.


(in millions)	(in millions)	Markets Advisory		Capital Markets	Work Dynamics	JLL Technologies	LaSalle	Consolidated		(in millions)	Markets Advisory		Capital Markets	Work Dynamics	JLL Technologies	LaSalle	Consolidated
Balance as of December 31, 2022	Balance as of December 31, 2022	$	1,742.9	1,949.2	532.6	247.7	55.6	$	4,528.0	Balance as of December 31, 2022	$	1,742.9	1,949.2	532.6	247.7	55.6	$	4,528.0
Additions, net of adjustments	Additions, net of adjustments	—		18.7	—	—	—	18.7		Additions, net of adjustments	—		18.7	—	—	—	18.7

Dispositions										Dispositions	(0.4)		(0.2)	—	—	—	(0.6)
Impact of exchange rate movements	Impact of exchange rate movements	12.5		14.1	3.8	—	0.6	31.0		Impact of exchange rate movements	(1.7)		(2.0)	(0.5)	(0.1)	—	(4.3)
Balance as of June 30, 2023		$	1,755.4	1,982.0	536.4	247.7	56.2	$	4,577.7
Balance as of September 30, 2023										Balance as of September 30, 2023	$	1,740.8	1,965.7	532.1	247.6	55.6	$	4,541.8


(in millions)	(in millions)	Markets Advisory		Capital Markets	Work Dynamics	JLL Technologies	LaSalle	Consolidated		(in millions)	Markets Advisory		Capital Markets	Work Dynamics	JLL Technologies	LaSalle	Consolidated
Balance as of January 1, 2022	Balance as of January 1, 2022	$	1,782.9	1,983.9	539.9	247.5	57.4	$	4,611.6	Balance as of January 1, 2022	$	1,782.9	1,983.9	539.9	247.5	57.4	$	4,611.6
Additions, net of adjustments	Additions, net of adjustments	—		0.8	4.6	0.4	—	5.8		Additions, net of adjustments	—		8.5	4.6	0.4	—	13.5

Impact of exchange rate movements	Impact of exchange rate movements	(40.2)		(43.5)	(11.8)	(0.2)	(1.8)	(97.5)		Impact of exchange rate movements	(69.8)		(76.4)	(20.8)	(0.2)	(3.1)	(170.3)
Balance as of June 30, 2022		$	1,742.7	1,941.2	532.7	247.7	55.6	$	4,519.9
Balance as of September 30, 2022										Balance as of September 30, 2022	$	1,713.1	1,916.0	523.7	247.7	54.3	$	4,454.8

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The following tables detail, by intangible type, movements in the gross carrying amount and accumulated amortization of our identifiable intangibles.


(in millions)	(in millions)	MSRs		Other Intangibles	Consolidated		(in millions)	MSRs		Other Intangibles	Consolidated
Gross Carrying Amount	Gross Carrying Amount						Gross Carrying Amount
Balance as of December 31, 2022	Balance as of December 31, 2022	$	747.3	557.0	$	1,304.3	Balance as of December 31, 2022	$	747.3	557.0	$	1,304.3
Additions, net of adjustments(1)	Additions, net of adjustments(1)	45.5		5.8	51.3		Additions, net of adjustments(1)	72.5		5.8	78.3
Adjustment for fully amortized intangibles	Adjustment for fully amortized intangibles	(20.2)		(17.4)	(37.6)		Adjustment for fully amortized intangibles	(25.7)		(20.3)	(46.0)

Impact of exchange rate movements	Impact of exchange rate movements	—		2.1	2.1		Impact of exchange rate movements	—		(1.0)	(1.0)
Balance as of June 30, 2023		$	772.6	547.5	$	1,320.1
Balance as of September 30, 2023							Balance as of September 30, 2023	$	794.1	541.5	$	1,335.6

Accumulated Amortization	Accumulated Amortization						Accumulated Amortization
Balance as of December 31, 2022	Balance as of December 31, 2022	$	(242.2)	(203.6)	$	(445.8)	Balance as of December 31, 2022	$	(242.2)	(203.6)	$	(445.8)
Amortization, net(2)	Amortization, net(2)	(54.5)		(35.6)	(90.1)		Amortization, net(2)	(80.1)		(52.8)	(132.9)
Adjustment for fully amortized intangibles	Adjustment for fully amortized intangibles	20.2		17.4	37.6		Adjustment for fully amortized intangibles	25.7		20.3	46.0

Impact of exchange rate movements	Impact of exchange rate movements	—		(0.7)	(0.7)		Impact of exchange rate movements	—		0.3	0.3
Balance as of June 30, 2023		$	(276.5)	(222.5)	$	(499.0)
Balance as of September 30, 2023							Balance as of September 30, 2023	$	(296.6)	(235.8)	$	(532.4)

Net book value as of June 30, 2023		$	496.1	325.0	$	821.1
Net book value as of September 30, 2023							Net book value as of September 30, 2023	$	497.5	305.7	$	803.2

(1) Included in this amount for MSRs was ~~$6.8~~$8.4 million relating to prepayments/write-offs due to prepayments of the underlying obligation for which we assumed, acquired or retained the servicing rights.

(2) Amortization of MSRs is included in Revenue within the Condensed Consolidated Statements of Comprehensive Income.


(in millions)	(in millions)	MSRs		Other Intangibles	Total		(in millions)	MSRs		Other Intangibles	Total
Gross Carrying Amount	Gross Carrying Amount						Gross Carrying Amount
Balance as of December 31, 2021	Balance as of December 31, 2021	$	669.7	557.4	$	1,227.1	Balance as of December 31, 2021	$	669.7	557.4	$	1,227.1
Additions, net of adjustments(1)	Additions, net of adjustments(1)	78.1		4.9	83.0		Additions, net of adjustments(1)	103.3		19.1	122.4
Adjustment for fully amortized intangibles	Adjustment for fully amortized intangibles	(33.8)		(2.5)	(36.3)		Adjustment for fully amortized intangibles	(47.9)		(2.7)	(50.6)

Impact of exchange rate movements	Impact of exchange rate movements	—		(7.7)	(7.7)		Impact of exchange rate movements	—		(13.7)	(13.7)
Balance as of June 30, 2022		$	714.0	552.1	$	1,266.1
Balance as of September 30, 2022							Balance as of September 30, 2022	$	725.1	560.1	$	1,285.2

Accumulated Amortization	Accumulated Amortization						Accumulated Amortization
Balance as of December 31, 2021	Balance as of December 31, 2021	$	(191.0)	(149.1)	$	(340.1)	Balance as of December 31, 2021	$	(191.0)	(149.1)	$	(340.1)
Amortization, net(2)	Amortization, net(2)	(58.8)		(33.7)	(92.5)		Amortization, net(2)	(86.7)		(51.5)	(138.2)
Adjustment for fully amortized intangibles	Adjustment for fully amortized intangibles	33.8		2.5	36.3		Adjustment for fully amortized intangibles	47.9		2.7	50.6

Impact of exchange rate movements	Impact of exchange rate movements	—		2.1	2.1		Impact of exchange rate movements	—		4.1	4.1
Balance as of June 30, 2022		$	(216.0)	(178.2)	$	(394.2)
Balance as of September 30, 2022							Balance as of September 30, 2022	$	(229.8)	(193.8)	$	(423.6)

Net book value as of June 30, 2022		$	498.0	373.9	$	871.9
Net book value as of September 30, 2022							Net book value as of September 30, 2022	$	495.3	366.3	$	861.6

(1) Included in this amount for MSRs was ~~$16.7~~$22.5 million relating to prepayments/write-offs due to prepayments of the underlying obligation for which we assumed, acquired or retained the servicing rights.

(2) Amortization of MSRs is included in Revenue within the Condensed Consolidated Statements of Comprehensive Income.

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6.INVESTMENTS

Summarized investment balances as of ~~June~~September 30, 2023 and December 31, 2022 are presented in the following table.


(in millions)	(in millions)	June 30, 2023		December 31, 2022	(in millions)	September 30, 2023		December 31, 2022
JLL Technologies investments	JLL Technologies investments	$	469.1	483.4	JLL Technologies investments	$	469.3	483.4
LaSalle co-investments	LaSalle co-investments	376.1		366.5	LaSalle co-investments	368.3		366.5
Other investments	Other investments	27.5		23.9	Other investments	27.6		23.9
Total	Total	$	872.7	873.8	Total	$	865.2	873.8

Our JLL Technologies investments are, generally, investments in early to mid-stage proptech companies as well as proptech funds, while our LaSalle co-investments are, primarily, direct investments in 49 separate property or commingled funds, where we co-invest alongside our clients and for which we also have an advisory agreement.

We have maximum potential unfunded commitments to direct investments or investment vehicles of ~~$324.1~~$361.9 million and ~~$14.9~~$14.2 million as of ~~June~~September 30, 2023 for our LaSalle Investment Management business and JLL Technologies, respectively. Of the ~~$324.1~~$361.9 million related to LaSalle, while we remain contractually obligated, we do not expect a call on the $60.3 million relating to a specific investment since the underlying fund moved into its liquidation phase in January 2020.

We evaluate our less-than-wholly-owned investments to determine whether the underlying entities are classified as variable interest entities ("VIEs"); we assess each identified VIE to determine whether we are the primary beneficiary. In prior periods, we determined we were the primary beneficiary of certain VIEs and, accordingly, we consolidated such entities. In December of 2022, as a result of a reconsideration event, we concluded we were no longer the primary beneficiary of these VIEs and, therefore, no longer consolidate these VIEs.

Summarized financial information for our consolidated VIEs is presented in the following table. As a result of the reconsideration event described above, there were no consolidated VIE balances as of ~~June~~September 30, 2023 and December 31, 2022; net income was consolidated up to the reconsideration date.


		Three Months Ended June 30,			Six Months Ended June 30,				Three Months Ended September 30,			Nine Months Ended September 30,
(in millions)	(in millions)	2023		2022	2023		2022	(in millions)	2023		2022	2023		2022
Revenue	Revenue	$	—	5.1	$	—	8.6	Revenue	$	—	4.6	$	—	13.2
Operating and other expenses	Operating and other expenses	—		(6.0)	—		(11.7)	Operating and other expenses	—		(6.2)	—		(17.9)
Net gains on sale of investments(1)	Net gains on sale of investments(1)	—		142.3	—		142.3	Net gains on sale of investments(1)	—		—	—		142.3
Net income		$	—	141.4	$	—	139.2
Net (loss) income								Net (loss) income	$	—	(1.6)	$	—	137.6

(1) The gain was included in Other ~~(expense)~~ income on the Condensed Consolidated Statements of Comprehensive Income.

We allocated the net (loss) income of the consolidated VIEs to the noncontrolling interest holders as Net (loss) income ~~(loss)~~ attributable to noncontrolling interest in our Condensed Consolidated Statements of Comprehensive Income.

Impairment

There were no significant other-than-temporary impairment charges on investments for the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022.

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Fair Value

We report a majority of our investments 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 our Condensed Consolidated Statements of Comprehensive Income within Equity (losses) earnings. The table below shows the movement in our investments reported at fair value.


(in millions)	(in millions)	2023		2022	(in millions)	2023		2022
Fair value investments as of January 1,	Fair value investments as of January 1,	$	794.9	639.6	Fair value investments as of January 1,	$	794.9	639.6
Investments(1)	Investments(1)	123.8		121.8	Investments(1)	141.1		140.3
Distributions	Distributions	(11.1)		(21.4)	Distributions	(20.2)		(29.9)
Change in fair value, net	Change in fair value, net	(110.5)		65.3	Change in fair value, net	(121.8)		65.2
Foreign currency translation adjustments, net	Foreign currency translation adjustments, net	5.4		(19.2)	Foreign currency translation adjustments, net	(1.2)		(28.5)
Fair value investments as of June 30,		$	802.5	786.1
Fair value investments as of September 30,					Fair value investments as of September 30,	$	792.8	786.7

(1) In ~~the second quarter of~~ 2023, ~~$63.8~~$66.9 million in Notes receivable matured and (inclusive of accrued interest) converted to equity.

See Note 8, Fair Value Measurements, for additional discussion of our investments reported at fair value.

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7.STOCK-BASED COMPENSATION

Stock Unit Awards

Restricted stock unit ("RSU") and performance stock unit ("PSU") awards activity is presented in the following tables.


		RSU Shares (in 000's)	PSU Shares (in 000's)	Total Shares (in 000's)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (in years)		RSU Shares (in 000's)	PSU Shares (in 000's)	Total Shares (in 000's)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (in years)
Unvested as of March 31, 2023		688.4	316.4	1,004.8	$	192.36	1.66
Unvested as of June 30, 2023								Unvested as of June 30, 2023	1,003.4	463.6	1,467.0	$	174.54	1.85
Granted	Granted	345.2	151.8	497.0	137.67			Granted	175.3	2.4	177.7	165.96
Vested	Vested	(15.1)	—	(15.1)	131.67			Vested	(66.4)	—	(66.4)	145.97
Forfeited	Forfeited	(15.1)	(4.6)	(19.7)	186.15			Forfeited	(39.6)	(4.2)	(43.8)	176.43
Unvested as of June 30, 2023		1,003.4	463.6	1,467.0	$	174.54	1.85
Unvested as of September 30, 2023								Unvested as of September 30, 2023	1,072.7	461.8	1,534.5	$	174.73	1.78

Unvested as of March 31, 2022		786.8	466.1	1,252.9	$	152.62	1.84
Unvested as of June 30, 2022								Unvested as of June 30, 2022	939.0	576.9	1,515.9	$	167.23	1.98
Granted	Granted	188.5	113.0	301.5	224.59			Granted	59.9	1.6	61.5	172.22
Vested	Vested	(28.6)	—	(28.6)	129.96			Vested	(203.7)	—	(203.7)	141.15
Forfeited	Forfeited	(7.7)	(2.2)	(9.9)	173.02			Forfeited	(10.2)	(10.6)	(20.8)	158.85
Unvested as of June 30, 2022		939.0	576.9	1,515.9	$	167.23	1.98
Unvested as of September 30, 2022								Unvested as of September 30, 2022	785.0	567.9	1,352.9	$	171.51	1.85


		RSU Shares (in 000's)	PSU Shares (in 000's)	Total Shares (in 000's)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (in years)		RSU Shares (in 000's)	PSU Shares (in 000's)	Total Shares (in 000's)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (in years)
Unvested as of December 31, 2022	Unvested as of December 31, 2022	841.3	567.0	1,408.3	$	170.78	1.79	Unvested as of December 31, 2022	841.3	567.0	1,408.3	$	170.78	1.79
Granted	Granted	345.2	182.8	528.0	136.13			Granted	520.5	185.2	705.7	143.64
Vested	Vested	(160.7)	(257.2)	(417.9)	116.49			Vested	(227.1)	(257.2)	(484.3)	120.53
Forfeited	Forfeited	(22.4)	(29.0)	(51.4)	148.89			Forfeited	(62.0)	(33.2)	(95.2)	161.55
Unvested as of June 30, 2023		1,003.4	463.6	1,467.0	$	174.54	1.85
Unvested as of September 30, 2023								Unvested as of September 30, 2023	1,072.7	461.8	1,534.5	$	174.73	1.78

Unvested as of December 31, 2021	Unvested as of December 31, 2021	912.4	646.0	1,558.4	$	152.27	1.99	Unvested as of December 31, 2021	912.4	646.0	1,558.4	$	152.27	1.99
Granted	Granted	188.5	113.0	301.5	223.61			Granted	248.4	114.6	363.0	214.90
Vested	Vested	(151.4)	(175.1)	(326.5)	147.57			Vested	(355.1)	(175.1)	(530.2)	145.10
Forfeited	Forfeited	(10.5)	(7.0)	(17.5)	173.44			Forfeited	(20.7)	(17.6)	(38.3)	165.51
Unvested as of June 30, 2022		939.0	576.9	1,515.9	$	167.23	1.98
Unvested as of September 30, 2022								Unvested as of September 30, 2022	785.0	567.9	1,352.9	$	171.51	1.85

As of ~~June~~September 30, 2023, we had ~~$104.5~~$99.4 million of unamortized deferred compensation related to unvested RSUs and PSUs, which we anticipate recognizing over varying periods into 2027.

For the three and nine months ended September 30, 2023, we recorded $13.5 million of stock-based compensation expense reversal associated with the expected achievement against performance measures of certain PSU awards.

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8.FAIR VALUE MEASUREMENTS

We measure certain assets and liabilities in accordance with ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value as the price that would be received for an asset, or paid to transfer a liability, in an orderly transaction between market participants on the measurement date. In addition, it establishes a framework for measuring fair value according to the following three-tier fair value hierarchy:

•Level 1 - Quoted prices for identical assets or liabilities in active markets accessible as of the measurement date;

•Level 2 - Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

•Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Financial Instruments

Our financial instruments include Cash and cash equivalents, Trade receivables, Notes and other receivables, Reimbursable receivables, Warehouse receivables, restricted cash, contract assets, Accounts payable, Reimbursable payables, Short-term borrowings, contract liabilities, Warehouse facilities, Credit facility, Long-term debt and foreign currency forward contracts. The carrying amounts of Cash and cash equivalents, Trade receivables, Notes and other receivables, Reimbursable receivables, restricted cash, contract assets, Accounts payable, Reimbursable payables, contract liabilities and the Warehouse facilities approximate their estimated fair values due to the short-term nature of these instruments. The carrying values of our Credit facility and Short-term borrowings approximate their estimated fair values given the variable interest rate terms and market spreads.

We estimated the fair value of our Long-term debt using dealer quotes that are Level 2 inputs in the fair value hierarchy. The fair value and carrying value of our debt are presented in the following table.


(in millions)	(in millions)	June 30, 2023		December 31, 2022	(in millions)	September 30, 2023		December 31, 2022
Long-term debt, fair value	Long-term debt, fair value	$	363.3	360.9	Long-term debt, fair value	$	357.8	360.9
Long-term debt, carrying value, net of debt issuance costs	Long-term debt, carrying value, net of debt issuance costs	380.7		372.8	Long-term debt, carrying value, net of debt issuance costs	369.5		372.8

Investments at Fair Value - Net Asset Value ("NAV")

We report a significant portion of our investments 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 our Condensed Consolidated Statements of Comprehensive Income within Equity (losses) earnings.

For a subset of our investments reported at fair value, we estimate the fair value using the NAV per share (or its equivalent) our investees provide. Critical inputs to NAV estimates included valuations of the underlying real estate assets and borrowings, which incorporate investment-specific assumptions such as discount rates, capitalization rates, rental and expense growth rates, and asset-specific market borrowing rates. We did not consider any adjustments to NAV estimates provided by investees, including adjustments for any restrictions to the transferability of ownership interests embedded within investment agreements to which we are a party, to be necessary based upon (i) our understanding of the methodology utilized and inputs incorporated to estimate NAV at the investee level, (ii) consideration of market demand for the specific types of real estate assets held by each venture and (iii) contemplation of real estate and capital markets conditions in the localities in which these ventures operate. As of ~~June~~September 30, 2023 and December 31, 2022, investments at fair value using NAV were ~~$314.1~~$307.8 million and $284.6 million, respectively. As these investments are not required to be classified in the fair value hierarchy, they have been excluded from the following table.

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Recurring Fair Value Measurements

The following table categorizes by level in the fair value hierarchy the estimated fair value of our assets and liabilities measured at fair value on a recurring basis.


		June 30, 2023				December 31, 2022				September 30, 2023				December 31, 2022
(in millions)	(in millions)	Level 1		Level 2	Level 3	Level 1	Level 2	Level 3	(in millions)	Level 1		Level 2	Level 3	Level 1	Level 2	Level 3
Assets	Assets								Assets
Investments - fair value	Investments - fair value	$	50.3	—	438.1	58.3	—	452.0	Investments - fair value	$	46.3	—	438.7	58.3	—	452.0
Foreign currency forward contracts receivable	Foreign currency forward contracts receivable	—		4.2	—	—	3.7	—	Foreign currency forward contracts receivable	—		3.3	—	—	3.7	—
Warehouse receivables	Warehouse receivables	—		1,049.0	—	—	463.2	—	Warehouse receivables	—		705.2	—	—	463.2	—
Deferred compensation plan assets	Deferred compensation plan assets	—		559.5	—	—	517.9	—	Deferred compensation plan assets	—		590.3	—	—	517.9	—
Mortgage banking derivative assets	Mortgage banking derivative assets	—		—	198.7	—	—	190.2	Mortgage banking derivative assets	—		—	214.1	—	—	190.2
Total assets at fair value	Total assets at fair value	$	50.3	1,612.7	636.8	58.3	984.8	642.2	Total assets at fair value	$	46.3	1,298.8	652.8	58.3	984.8	642.2
Liabilities	Liabilities								Liabilities
Foreign currency forward contracts payable	Foreign currency forward contracts payable	$	—	9.2	—	—	4.8	—	Foreign currency forward contracts payable	$	—	8.3	—	—	4.8	—
Deferred compensation plan liabilities	Deferred compensation plan liabilities	—		517.1	—	—	485.4	—	Deferred compensation plan liabilities	—		540.4	—	—	485.4	—
Earn-out liabilities	Earn-out liabilities	—		—	64.3	—	—	73.2	Earn-out liabilities	—		—	64.2	—	—	73.2
Mortgage banking derivative liabilities	Mortgage banking derivative liabilities	—		—	139.6	—	—	169.5	Mortgage banking derivative liabilities	—		—	183.2	—	—	169.5
Total liabilities at fair value	Total liabilities at fair value	$	—	526.3	203.9	—	490.2	242.7	Total liabilities at fair value	$	—	548.7	247.4	—	490.2	242.7

Investments

We classify one investment as Level 1 in the fair value hierarchy as a quoted price is readily available. We increase or decrease our investment each reporting period by the change in the fair value of the investment. We report the fair value adjustments in our Condensed Consolidated Statements of Comprehensive Income within Equity (losses) earnings.

Investments classified as Level 3 in the fair value hierarchy represent investments in early to mid-stage non-public entities where we elected the fair value option. To the extent there are changes in fair value, we recognize such changes through Equity ~~earnings/losses.~~(losses) earnings. Such changes are generally the result of pricing in subsequent funding rounds, changes in business strategy or performance updates from the ~~investee, several of which occurred in the second quarter of 2023.~~investee. For most of our investments, the carrying value was deemed to approximate fair value due to the proximity of the investment date, or date of most recent financing raise, to the balance sheet date, as well as consideration of investee-level performance updates.

Foreign Currency Forward Contracts

We regularly use foreign currency forward contracts to manage our currency exchange rate risk related to intercompany lending and cash management practices. We determine the fair values of these contracts based on current market rates. The inputs for these valuations are Level 2 inputs in the fair value hierarchy. The following table details the gross notional value and net basis of these contracts.


(in billions)	(in billions)	June 30, 2023		December 31, 2022	(in billions)	September 30, 2023		December 31, 2022
Foreign currency forward contracts, gross notional value	Foreign currency forward contracts, gross notional value	$	1.76	1.81	Foreign currency forward contracts, gross notional value	$	1.73	1.81
Foreign currency forward contracts, net basis	Foreign currency forward contracts, net basis	1.08		1.02	Foreign currency forward contracts, net basis	1.19		1.02

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We record the asset and liability positions for our foreign currency forward contracts based on the net payable or net receivable position with the financial institutions from which we purchase these contracts. The outstanding balances of these contracts are presented in the following table.


(in millions)	(in millions)	June 30, 2023		December 31, 2022	(in millions)	September 30, 2023		December 31, 2022
Net asset, receivable positions	Net asset, receivable positions	$	5.4	7.7	Net asset, receivable positions	$	3.4	7.7
Net asset, payable positions	Net asset, payable positions	(1.2)		(4.0)	Net asset, payable positions	(0.1)		(4.0)
Foreign currency forward contracts receivable	Foreign currency forward contracts receivable	$	4.2	3.7	Foreign currency forward contracts receivable	$	3.3	3.7

Net liability, receivable positions	Net liability, receivable positions	$	(1.7)	(1.6)	Net liability, receivable positions	$	(1.4)	(1.6)
Net liability, payable positions	Net liability, payable positions	10.9		6.4	Net liability, payable positions	9.7		6.4
Foreign currency forward contracts payable	Foreign currency forward contracts payable	$	9.2	4.8	Foreign currency forward contracts payable	$	8.3	4.8

Warehouse Receivables

As of ~~June~~September 30, 2023 and December 31, 2022, all of our Warehouse receivables were under commitment to be purchased by government-sponsored enterprises ("GSEs") or by a qualifying investor as part of a U.S. government or GSE mortgage-backed security program.

Deferred Compensation

We maintain a deferred compensation plan for certain of our U.S. employees that allows them to defer portions of their compensation. We recorded this plan on our Condensed Consolidated Balance Sheet as Deferred compensation plan assets, long-term deferred compensation plan liabilities, included in Deferred compensation, and as a reduction of equity, Shares held in trust. The components of the plan are presented in the following table.


(in millions)	(in millions)	June 30, 2023		December 31, 2022	(in millions)	September 30, 2023		December 31, 2022
Deferred compensation plan assets	Deferred compensation plan assets	$	559.5	517.9	Deferred compensation plan assets	$	590.3	517.9
Long-term deferred compensation plan liabilities	Long-term deferred compensation plan liabilities	517.1		485.4	Long-term deferred compensation plan liabilities	540.4		485.4
Shares held in trust	Shares held in trust	11.6		9.8	Shares held in trust	11.4		9.8

Earn-Out Liabilities

We classify our Earn-out liabilities within Level 3 in the fair value hierarchy because the inputs we use to develop the estimated fair value include unobservable inputs. See Note 5, Business Combinations, Goodwill and Other Intangible Assets, for additional discussion of our Earn-out liabilities.

Mortgage Banking Derivatives

Both our interest rate lock commitments to prospective borrowers and forward sale contracts with prospective investors are undesignated derivatives and considered Level 3 valuations due to significant unobservable inputs related to counterparty credit risk. An increase in counterparty credit risk assumptions would result in a lower fair value measurement.

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The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

(in millions) Balance as of March 31, 2023 Net change in fair value
Foreign CTA(1)
Purchases / Additions Settlements
Transfers In(2)
Balance as of
June 30, 2023
Investments $ 466.5 (103.9) 0.7 11.0 — 63.8 $ 438.1
Mortgage banking derivative assets and liabilities, net 12.8 43.9 — 37.4 (35.0) — 59.1
Earn-out liabilities 73.1 (0.6) — — (8.2) — 64.3
(in millions) Balance as of March 31, 2022 Net change in fair value
Foreign CTA(1)
Purchases / Additions Settlements Balance as of June 30, 2022
Investments $ 344.2 45.3 — 71.1 (0.2) $ 460.4
Mortgage banking derivative assets and liabilities, net 37.1 2.2 — 48.4 (66.1) 21.6
Earn-out liabilities 79.5 1.0 (0.3) — (5.3) 74.9
(in millions) Balance as of December 31, 2022 Net change in fair value
Foreign CTA(1)
Purchases / Additions Settlements
Transfers In(2)
Balance as of
June 30, 2023
Investments $ 452.0 (99.0) 1.2 20.1 — 63.8 $ 438.1
Mortgage banking derivative assets and liabilities, net 20.7 38.9 — 68.5 (69.0) — 59.1
Earn-out liabilities 73.2 (0.6) 0.2 — (8.5) — 64.3
(in millions) Balance as of December 31, 2021 Net change in fair value
Foreign CTA(1)
Purchases / Additions Settlements Balance as of June 30, 2022
Investments $ 303.5 62.5 — 94.6 (0.2) $ 460.4
Mortgage banking derivative assets and liabilities, net 21.9 22.6 — 86.0 (108.9) 21.6
Earn-out liabilities 84.1 0.3 (0.4) 2.0 (11.1) 74.9


(in millions)	Balance as of June 30, 2023		Net change in fair value	Foreign CTA(1)	Purchases / Additions	Settlements	Transfers in(2)	Balance as of September 30, 2023
Investments	$	438.1	(2.0)	(1.0)	0.5	—	3.1	$	438.7
Mortgage banking derivative assets and liabilities, net	59.1		18.0	—	25.3	(71.5)	—	30.9
Earn-out liabilities	64.3		0.1	(0.1)	—	(0.1)	—	64.2


(in millions)	Balance as of June 30, 2022		Net change in fair value	Foreign CTA(1)	Purchases / Additions	Settlements	Transfers out	Balance as of September 30, 2022
Investments	$	460.4	2.5	—	1.8	—	(11.2)	$	453.5
Mortgage banking derivative assets and liabilities, net	21.6		34.1	—	33.6	(29.0)	—	60.3
Earn-out liabilities	74.9		(0.1)	(0.3)	3.3	(1.2)	—	76.6


(in millions)	Balance as of December 31, 2022		Net change in fair value	Foreign CTA(1)	Purchases / Additions	Settlements	Transfers in(2)	Balance as of September 30, 2023
Investments	$	452.0	(101.0)	0.2	20.6	—	66.9	$	438.7
Mortgage banking derivative assets and liabilities, net	20.7		56.9	—	93.8	(140.5)	—	30.9
Earn-out liabilities	73.2		(0.5)	0.1	—	(8.6)	—	64.2


(in millions)	Balance as of December 31, 2021		Net change in fair value	Foreign CTA(1)	Purchases / Additions	Settlements	Transfers out	Balance as of September 30, 2022
Investments	$	303.5	65.0	—	96.2	—	(11.2)	$	453.5
Mortgage banking derivative assets and liabilities, net	21.9		56.7	—	119.6	(137.9)	—	60.3
Earn-out liabilities	84.1		0.2	(0.7)	5.3	(12.3)	—	76.6

(1) CTA: Currency translation adjustments

(2) ~~In the second quarter of 2023,~~ Notes receivable (inclusive of accrued interest) converted to equity upon maturity and was classified as a Level 3 investment immediately.

Net change in fair value, included in the tables above, is reported in Net income as follows.


Category of Assets/Liabilities using Unobservable Inputs			Condensed Consolidated Statements of Comprehensive Income Account Caption
Earn-out liabilities (Short-term and Long-term)			Restructuring and acquisition charges
Investments			Equity (losses) earnings
Other current assets - Mortgage banking derivative assets			Revenue
Other current liabilities - Mortgage banking derivative liabilities			Revenue

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Non-Recurring Fair Value Measurements

We review our investments, except those investments otherwise reported at fair value, on a quarterly basis, or as otherwise deemed necessary, for indications of whether we may be unable to recover the carrying value of our investments and whether such investments are other than temporarily impaired. When the carrying amount of the investment is in excess of the estimated future undiscounted cash flows, we use a discounted cash flow approach or other acceptable method to determine the fair value of the investment in computing the amount of the impairment. Our determination of fair value primarily relies on Level 3 inputs. We did not recognize any significant investment-level impairment losses during either of the ~~six~~nine months ended ~~June~~September 30, 2023 or 2022. See Note 6, Investments, for additional information, including information related to impairment charges recorded at the investee level.

9.DEBT

Debt is composed of the following obligations.


($ in millions)	($ in millions)	June 30, 2023		December 31, 2022	($ in millions)	September 30, 2023		December 31, 2022
Short-term debt:
Local overdraft facilities	Local overdraft facilities	$	13.0	21.2	Local overdraft facilities	$	15.2	21.2
Other short-term borrowings	Other short-term borrowings	99.1		143.0	Other short-term borrowings	102.4		143.0
Total short-term debt		$	112.1	164.2
Credit facility, net of debt issuance costs of $9.5 and $11.2		1,840.5		1,213.8
Short-term borrowings					Short-term borrowings	$	117.6	164.2
Credit facility, net of debt issuance costs of $8.6 and $11.2					Credit facility, net of debt issuance costs of $8.6 and $11.2	1,591.4		1,213.8
Long-term senior notes, 1.96%, face amount of €175.0, due June 2027, net of debt issuance costs of $0.5 and $0.5	Long-term senior notes, 1.96%, face amount of €175.0, due June 2027, net of debt issuance costs of $0.5 and $0.5	190.4		186.5	Long-term senior notes, 1.96%, face amount of €175.0, due June 2027, net of debt issuance costs of $0.5 and $0.5	184.8		186.5
Long-term senior notes, 2.21%, face amount of €175.0, due June 2029, net of debt issuance costs of $0.6 and $0.6		190.3		186.3
Long-term senior notes, 2.21%, face amount of €175.0, due June 2029, net of debt issuance costs of $0.6 and $0.7					Long-term senior notes, 2.21%, face amount of €175.0, due June 2029, net of debt issuance costs of $0.6 and $0.7	184.7		186.3
Total debt	Total debt	$	2,333.3	1,750.8	Total debt	$	2,078.5	1,750.8

Credit Facilities

We have a $3.35 billion unsecured revolving credit facility (the "Facility") that matures on April 14, 2026. Pricing on the Facility ranges from Adjusted Term Secured Overnight Financing Rate ("SOFR") plus 0.875% to 1.35%, with pricing as of ~~June~~September 30, 2023 at Adjusted Term SOFR plus ~~0.99%~~0.98%. In addition to outstanding borrowings under the Facility presented in the above table, we had outstanding letters of credit under the Facility of $0.4 million as of both ~~June~~September 30, 2023 and December 31, 2022.

In addition, we have an uncommitted credit agreement (the "Uncommitted Facility"), which allows for discretionary short-term liquidity of up to $400.0 million. Interest and fees are set at the time of utilization and calculated on a 360-day basis. Between quarter-end dates, we intend to use the proceeds to reduce indebtedness under the Facility at a lower interest rate. As such, the Uncommitted Facility had no outstanding balance as of both ~~June~~September 30, 2023 and December 31, 2022.

The following table provides additional information on our Facility and Uncommitted Facility, collectively.


		Three Months Ended June 30,					Six Months Ended June 30,						Three Months Ended September 30,					Nine Months Ended September 30,
($ in millions)	($ in millions)	2023			2022		2023			2022		($ in millions)	2023			2022		2023			2022
Average outstanding borrowings	Average outstanding borrowings	$	2,315.8		1,581.9		$	2,019.5		1,135.0		Average outstanding borrowings	$	2,011.9		1,599.8		$	2,017.0		1,295.9
Average effective interest rate	Average effective interest rate	5.9		%	1.6	%	5.7		%	1.4	%	Average effective interest rate	6.1		%	3.2	%	5.8		%	2.2	%

We will continue to use the Facility for, but not limited to, business acquisitions, working capital needs (including payment of accrued incentive compensation), co-investment activities, share repurchases and capital expenditures.

Short-Term and Long-Term Debt

In addition to our credit facilities, we have the capacity to borrow up to an additional ~~$53.8~~$52.9 million under local overdraft facilities. Amounts outstanding are presented in the debt table above.

As of ~~June~~September 30, 2023, our issuer and senior unsecured ratings are investment grade: Baa1 from Moody’s Investors Service, Inc. and BBB+ from Standard & Poor’s Ratings Services.

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Covenants

Our Facility and senior notes are subject to customary financial and other covenants, including cash interest coverage ratios and leverage ratios, as well as event of default conditions. We remained in compliance with all covenants as of ~~June~~September 30, 2023.

Warehouse Facilities


		June 30, 2023			December 31, 2022			September 30, 2023			December 31, 2022
($ in millions)	($ in millions)	Outstanding Balance		Maximum Capacity	Outstanding Balance	Maximum Capacity	($ in millions)	Outstanding Balance		Maximum Capacity	Outstanding Balance	Maximum Capacity
Warehouse facilities:	Warehouse facilities:						Warehouse facilities:
BSBY(1) plus 1.30%, expires September 18, 2023		$	397.2	700.0	215.7	700.0
SOFR plus 1.30%, expires September 15, 2023		387.4		1,200.0	132.3	1,200.0
SOFR plus 1.40%, expires July 28, 2023(2)		78.7		400.0	9.0	400.0
Fannie Mae ASAP(3) program, SOFR plus 1.25%		78.7		n/a	99.2	n/a
BSBY(1) plus 1.30%, expires September 16, 2024(2)							BSBY(1) plus 1.30%, expires September 16, 2024(2)	$	174.9	700.0	215.7	700.0
SOFR plus 1.30%, expires September 14, 2024(3)							SOFR plus 1.30%, expires September 14, 2024(3)	381.4		1,200.0	132.3	1,200.0
SOFR plus 1.40%, expires July 26, 2024(4)							SOFR plus 1.40%, expires July 26, 2024(4)	—		400.0	9.0	400.0
Fannie Mae ASAP(5) program, SOFR plus 1.25%							Fannie Mae ASAP(5) program, SOFR plus 1.25%	19.9		n/a	99.2	n/a
Gross warehouse facilities	Gross warehouse facilities	942.0		2,300.0	456.2	2,300.0	Gross warehouse facilities	576.2		2,300.0	456.2	2,300.0
Debt issuance costs	Debt issuance costs	(0.2)		n/a	(0.9)	n/a	Debt issuance costs	(1.3)		n/a	(0.9)	n/a
Total warehouse facilities	Total warehouse facilities	$	941.8	2,300.0	455.3	2,300.0	Total warehouse facilities	$	574.9	2,300.0	455.3	2,300.0

(1) Bloomberg Short-Term Bank Yield Index rate ("BSBY")

(2) In ~~July~~the third quarter of 2023, weJLL extended the ~~term~~Warehouse facility; previously, the facility had a maturity date of September 18, 2023.

(3) In the third quarter of 2023, JLL extended the Warehouse facility; previously, the facility tohad a maturity date of September 15, 2023.

(4) In the third quarter of 2023, JLL extended the Warehouse facility; previously, the facility had a maturity date of July ~~26, 2024.~~28, 2023.

~~(3)~~(5) As Soon As Pooled ("ASAP") funding program.

We have lines of credit established for the sole purpose of funding our Warehouse receivables. These lines of credit exist with financial institutions and are secured by the related warehouse receivables. Pursuant to these facilities, we are required to comply with certain financial covenants regarding (i) minimum net worth, (ii) minimum servicing-related loans and (iii) minimum adjusted leverage ratios. We remained in compliance with all covenants under our facilities as of ~~June~~September 30, 2023.

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10.COMMITMENTS AND CONTINGENCIES

We are a defendant in various litigation matters arising in the ordinary course of business, some of which involve claims for damages that are substantial in amount.

Professional Indemnity Insurance

In order to better manage our global insurance program and support our risk management efforts, we supplement our traditional insurance coverage for certain types of claims by using a wholly-owned captive insurance company. The level of risk retained by our captive insurance company, with respect to professional indemnity claims, is up to $10.0 million per claim, inclusive of the deductible. We contract third-party insurance companies to provide coverage of risk in excess of this amount. When a potential loss event occurs, we estimate the ultimate cost of the claim and accrue the amount in Other current and long-term liabilities on our Condensed Consolidated Balance Sheets when probable and estimable. In addition, we have established receivables from third-party insurance providers for claim amounts in excess of the risk retained by our captive insurance company. As of ~~June~~September 30, 2023 and December 31, 2022, these receivables were $2.2 million and $22.5 million, respectively, and are included in Notes and other receivables on our Condensed Consolidated Balance Sheets.

The following table shows the professional indemnity accrual activity and related payments.


(in millions)
December 31, 2022	$	2.2
New claims	~~0.3~~0.6
Prior year claims adjustments (including foreign currency changes)	~~4.4~~5.2
Claims paid	—(2.3)
~~June~~September 30, 2023	$	~~6.9~~5.7

December 31, 2021	$	1.2
New claims	—
Prior year claims adjustments (including foreign currency changes)	(0.1)
Claims paid	— (0.2)
~~June~~September 30, 2022	$	~~1.1~~0.9

Delegated Underwriting and Servicing ("DUS") Program Loan Loss-Sharing

As a participant in the DUS program, we retain a portion of the risk of loss for loans that are originated and sold under the DUS program. Net losses on defaulted loans are shared with Fannie Mae based upon established loss-sharing ratios. Generally, we share approximately one-third of incurred losses, subject to a cap of 20% of the principal balance of the mortgage at origination. As of ~~June~~September 30, 2023 and December 31, 2022, we had loans, funded and sold, subject to such loss-sharing arrangements with an aggregate unpaid principal balance of ~~$19.9~~$20.5 billion and $18.3 billion, respectively.

For all DUS program loans with loss-sharing obligations, we record a non-contingent liability equal to the estimated fair value of the guarantee obligations undertaken upon sale of the loan, which reduces our gain on sale of the loan. Subsequently, this liability is amortized over the estimated life of the loan and recognized as Revenue on the Condensed Consolidated Statements of Comprehensive Income. As of ~~June~~September 30, 2023 and December 31, 2022, the loss-sharing guarantee obligations were ~~$30.2~~$31.1 million and $29.0 million, respectively, and are included in Other liabilities on our Condensed Consolidated Balance Sheets. There were no loan losses incurred during the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022.

The loss-sharing aspect of the program represents an off-balance sheet credit exposure. We record a separate contingent reserve for this risk calculated on an individual loan level. The loan loss guarantee reserve was $24.8 million as of both ~~June~~September 30, 2023 and December 31, 2022, and is included within Other liabilities on our Condensed Consolidated Balance Sheets.

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11.RESTRUCTURING AND ACQUISITION CHARGES

Restructuring and acquisition charges include cash and non-cash expenses. Cash-based charges primarily consist of (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership, or transformation of business processes, (ii) acquisition, transaction and integration-related charges and (iii) other restructuring including lease exit charges. Non-cash charges include (i) stock-based compensation expense for retention awards issued in conjunction with prior-period acquisitions and (ii) fair value adjustments to earn-out liabilities relating to prior-period acquisition activity. Restructuring and acquisition charges are presented in the table below.


		Three Months Ended June 30,			Six Months Ended June 30,				Three Months Ended September 30,			Nine Months Ended September 30,
(in millions)	(in millions)	2023		2022	2023		2022	(in millions)	2023		2022	2023		2022
Severance and other employment-related charges	Severance and other employment-related charges	$	5.8	8.3	$	31.5	11.6	Severance and other employment-related charges	$	16.4	9.4	$	47.9	21.0
Restructuring, pre-acquisition and post-acquisition charges	Restructuring, pre-acquisition and post-acquisition charges	5.1		13.9	13.3		28.1	Restructuring, pre-acquisition and post-acquisition charges	15.5		11.4	28.8		39.5
Stock-based compensation expense for post-acquisition retention awards(1)	Stock-based compensation expense for post-acquisition retention awards(1)	1.5		2.7	3.3		5.4	Stock-based compensation expense for post-acquisition retention awards(1)	(0.4)		0.3	2.9		5.7
Fair value adjustments to earn-out liabilities	Fair value adjustments to earn-out liabilities	(0.6)		1.0	(0.6)		0.3	Fair value adjustments to earn-out liabilities	0.1		(0.1)	(0.5)		0.2
Restructuring and acquisition charges	Restructuring and acquisition charges	$	11.8	25.9	$	47.5	45.4	Restructuring and acquisition charges	$	31.6	21.0	$	79.1	66.4

(1) Includes the impact of shares forfeited during the third quarter.

We expect nearly all expenses related to (i) severance and other employment-related charges and (ii) restructuring, pre-acquisition and post-acquisition charges as of ~~June~~September 30, 2023 will be paid during the next twelve months.

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12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT

The tables below present the changes in Accumulated other comprehensive income (loss) ("AOCI") by component.


(in millions)	(in millions)	Pension and postretirement benefit		Cumulative foreign currency translation adjustment	Total		(in millions)	Pension and postretirement benefit		Cumulative foreign currency translation adjustment	Total
Balance as of March 31, 2023		$	(64.2)	(557.2)	$	(621.4)
Other comprehensive (loss) income before reclassification		(1.1)		11.1	10.0
Balance as of June 30, 2023							Balance as of June 30, 2023	$	(65.3)	(546.1)	$	(611.4)
Other comprehensive loss before reclassification							Other comprehensive loss before reclassification	—		(60.0)	(60.0)
Amounts reclassified from AOCI after tax expense of $ -, $ - and $ -	Amounts reclassified from AOCI after tax expense of $ -, $ - and $ -	—		—	—		Amounts reclassified from AOCI after tax expense of $ -, $ - and $ -	—		—	—
Other comprehensive (loss) income after tax expense of $ - , $ - and $ -		(1.1)		11.1	10.0
Balance as of June 30, 2023		$	(65.3)	(546.1)	$	(611.4)
Other comprehensive loss after tax expense of $ - , $ - and $ -							Other comprehensive loss after tax expense of $ - , $ - and $ -	—		(60.0)	(60.0)
Balance as of September 30, 2023							Balance as of September 30, 2023	$	(65.3)	(606.1)	$	(671.4)

(in millions)	(in millions)	Pension and postretirement benefit		Cumulative foreign currency translation adjustment	Total		(in millions)	Pension and postretirement benefit		Cumulative foreign currency translation adjustment	Total
Balance as of March 31, 2022		$	(42.7)	(376.8)	$	(419.5)
Balance as of June 30, 2022							Balance as of June 30, 2022	$	(42.7)	(541.2)	$	(583.9)
Other comprehensive loss before reclassification	Other comprehensive loss before reclassification	—		(164.4)	(164.4)		Other comprehensive loss before reclassification	—		(139.1)	(139.1)
Amounts reclassified from AOCI after tax expense of $ - , $ - and $ -	Amounts reclassified from AOCI after tax expense of $ - , $ - and $ -	—		—	—		Amounts reclassified from AOCI after tax expense of $ - , $ - and $ -	—		—	—
Other comprehensive loss after tax expense of $ - , $ - and $ -	Other comprehensive loss after tax expense of $ - , $ - and $ -	—		(164.4)	(164.4)		Other comprehensive loss after tax expense of $ - , $ - and $ -	—		(139.1)	(139.1)
Balance as of June 30, 2022		$	(42.7)	(541.2)	$	(583.9)
Balance as of September 30, 2022							Balance as of September 30, 2022	$	(42.7)	(680.3)	$	(723.0)

(in millions)	(in millions)	Pension and postretirement benefit		Cumulative foreign currency translation adjustment	Total		(in millions)	Pension and postretirement benefit		Cumulative foreign currency translation adjustment	Total
Balance as of December 31, 2022	Balance as of December 31, 2022	$	(64.2)	(584.0)	$	(648.2)	Balance as of December 31, 2022	$	(64.2)	(584.0)	$	(648.2)
Other comprehensive (loss) income before reclassification		(1.1)		37.9	36.8
Other comprehensive loss before reclassification							Other comprehensive loss before reclassification	(1.1)		(22.1)	(23.2)
Amounts reclassified from AOCI after tax expense of $ - , $ - and $ -	Amounts reclassified from AOCI after tax expense of $ - , $ - and $ -	—		—	—		Amounts reclassified from AOCI after tax expense of $ - , $ - and $ -	—		—	—
Other comprehensive (loss) income after tax expense of $ - , $ - and $ -		(1.1)		37.9	36.8
Balance as of June 30, 2023		$	(65.3)	(546.1)	$	(611.4)
Other comprehensive loss after tax expense of $ - , $ - and $ -							Other comprehensive loss after tax expense of $ - , $ - and $ -	(1.1)		(22.1)	(23.2)
Balance as of September 30, 2023							Balance as of September 30, 2023	$	(65.3)	(606.1)	$	(671.4)

(in millions)	(in millions)	Pension and postretirement benefit		Cumulative foreign currency translation adjustment	Total		(in millions)	Pension and postretirement benefit		Cumulative foreign currency translation adjustment	Total
Balance as of December 31, 2021	Balance as of December 31, 2021	$	(42.7)	(352.7)	$	(395.4)	Balance as of December 31, 2021	$	(42.7)	(352.7)	$	(395.4)
Other comprehensive loss before reclassification	Other comprehensive loss before reclassification	—		(188.5)	(188.5)		Other comprehensive loss before reclassification	—		(327.6)	(327.6)
Amounts reclassified from AOCI after tax expense of $ - , $ - and $ -	Amounts reclassified from AOCI after tax expense of $ - , $ - and $ -	—		—	—		Amounts reclassified from AOCI after tax expense of $ - , $ - and $ -	—		—	—
Other comprehensive loss after tax expense of $ - , $ - and $ -	Other comprehensive loss after tax expense of $ - , $ - and $ -	—		(188.5)	(188.5)		Other comprehensive loss after tax expense of $ - , $ - and $ -	—		(327.6)	(327.6)
Balance as of June 30, 2022		$	(42.7)	(541.2)	$	(583.9)
Balance as of September 30, 2022							Balance as of September 30, 2022	$	(42.7)	(680.3)	$	(723.0)

For pension and postretirement benefits, we report amounts reclassified from Accumulated other comprehensive income (loss) in Other income within the Condensed Consolidated Statements of Comprehensive Income.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the Condensed Consolidated Financial Statements, including the notes thereto, for the three and ~~six~~nine months ended ~~June~~September 30, 2023, and our audited Consolidated Financial Statements, including the notes thereto, for the fiscal year ended December 31, 2022, which are included in our 2022 Annual Report on Form 10-K, filed with the SEC and also available on our website (www.jll.com). You should also refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations contained in our 2022 Annual Report on Form 10-K.

The following discussion and analysis contains certain forward-looking statements generally identified by the words anticipates, believes, estimates, expects, forecasts, plans, intends and other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause JLL's actual results, performance, achievements, plans and objectives to be materially different from any future results, performance, achievements, plans and objectives expressed or implied by such forward-looking statements. See the Cautionary Note Regarding Forward-Looking Statements included within this section for further information.

We present our quarterly Management's Discussion and Analysis in the following sections:

(1)A summary of our critical accounting policies and estimates;

(2)Certain items affecting the comparability of results and certain market and other risks we face;

(3)The results of our operations, first on a consolidated basis and then for each of our business segments; and

(4)Liquidity and capital resources.

SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES

An understanding of our accounting policies is necessary for a complete analysis of our results, financial position, liquidity and trends. See Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for a complete summary of our significant accounting policies.

The preparation of our financial statements requires management to make certain critical accounting estimates and judgments that impact (1) the stated amount of assets and liabilities, (2) disclosure of contingent assets and liabilities at the date of the financial statements and (3) the reported amount of revenue and expenses during the reporting periods. These accounting estimates are based on management's judgment. We consider them to be critical because of their significance to the financial statements and the possibility that future events may differ from current judgments or that the use of different assumptions could result in materially different estimates. We review these estimates on a periodic basis to ensure reasonableness. Although actual amounts likely differ from such estimated amounts, we believe such differences are not likely to be material.

A discussion of our critical accounting policies and estimates used in the preparation of our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q can be found in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no material changes to these critical accounting policies and estimates during the ~~six~~nine months ended ~~June~~September 30, 2023.

ITEMS AFFECTING COMPARABILITY

Macroeconomic Conditions

Our results of operations and the variability of these results are significantly influenced by ~~(1)~~(i) macroeconomic trends, ~~(2)~~(ii) the geopolitical environment, ~~(3)~~(iii) the global and regional real estate markets and ~~(4)~~(iv) the financial and credit markets. These macroeconomic and other conditions have had, and we expect will continue to have, a significant impact on the variability of our results of operations.

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Acquisitions and Dispositions

The timing of acquisitions and dispositions may impact the comparability of our results on a year-over-year basis. Our results include incremental revenues and expenses following the completion date of an acquisition. Relating to dispositions, comparable results will include the revenues and expenses of recent dispositions and results may also include gains (losses) on the disposition. In addition, there is generally an initial adverse impact on net income from an acquisition as a result of pre-acquisition due diligence expenditures, transaction/deal costs and post-acquisition integration costs, such as fees from third-party advisors engaged to assist with onboarding and process alignment, retention and severance expense, early lease termination costs and other integration expenses. For dispositions, we may also incur such incremental costs during the disposition process and these costs could have an adverse impact on net income.

Equity Earnings and Incentive Fees

Equity earnings may vary substantially from period to period for a variety of reasons, including as a result of (i) valuation increases (decreases) on investments reported at fair value, (ii) gains (losses) on asset dispositions and (iii) impairment charges. The timing of recognition of these items may impact comparability between quarters, in any one year, or compared with a prior year.

LaSalle, our investment management business, is in part compensated through incentive fees where performance of underlying funds' investments exceeds agreed-to return hurdles. Depending upon performance, disposition activity and the contractual timing of measurement periods with clients, these fees can be significant and may vary substantially from period to period.

The comparability of these items can be seen in Note 4, Business Segments, of the Notes to Condensed Consolidated Financial Statements and is discussed further in Segment Operating Results included herein.

Foreign Currency

We conduct business using a variety of currencies, but we report our results in U.S. dollars. As a result, the volatility of currencies against the U.S. dollar may positively or negatively impact our results. This volatility can make it more difficult to perform period-to-period comparisons of the reported U.S. dollar results of operations, because such results may indicate a growth or decline rate that might not have been consistent with the real underlying growth or decline rates in the local operations. Consequently, we provide information about the impact of foreign currencies in the period-to-period comparisons of the reported results of operations in our discussion and analysis of financial condition in the Results of Operations section below.

Transaction-Based Revenue

Transaction-based fees, which are impacted by the size and timing of our clients' transactions, from real estate investment banking, capital markets activities and other services within our segments, increase the variability of the revenue we earn. The timing and the magnitude of these fees can vary significantly from year to year and quarter to quarter, and from region to region.

Seasonality

Historically, our quarterly revenue and profits have tended to increase from quarter to quarter as the year progresses. This is a result of a general focus in the real estate industry on completing or documenting transactions by calendar year end and the fact that certain expenses are constant through the year. In addition, this seasonality excludes the recognition of investment-generated performance fees as well as realized and unrealized co-investment equity earnings and losses (the timing of each of these can fluctuate based on a variety of factors). Generally, we recognize incentive fees when assets are sold, the timing of which is geared toward the benefit of our clients. In addition, co-investment equity gains and losses are primarily dependent on valuations of underlying investments, the direction and magnitude of changes to such valuations fluctuate based on a variety of factors. Non-variable operating expenses, which we treat as expenses when incurred during the year, are relatively constant on a quarterly basis.

A significant portion of our Compensation and benefits expense is from incentive compensation plans, which we generally accrue throughout the year based on progress toward annual performance targets. This quarterly estimation can result in significant fluctuations in quarterly Compensation and benefits expense from period to period. Consequently, the results for the periods ended ~~June~~September 30, 2023 and 2022 are not fully indicative of the results we expect to realize for the full fiscal year.

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RESULTS OF OPERATIONS

Definitions

•Assets under management data for LaSalle is reported on a one-quarter lag.

•MENA: Middle East & North Africa

•n.m.: not meaningful, represented by a percentage change of greater than 1,000% or a change in margin of greater than 10,000 basis points ("bps"), favorable or unfavorable.

Consolidated Operating Results


		Three Months Ended June 30,					Change in			% Change in Local Currency			Three Months Ended September 30,					Change in			% Change in Local Currency
($ in millions)	($ in millions)	2023			2022		U.S. dollars					($ in millions)	2023			2022		U.S. dollars
Markets Advisory	Markets Advisory	$	1,025.4		1,118.2		(92.8)	(8)	%	(7)	%	Markets Advisory	$	992.4		1,111.5		(119.1)	(11)	%	(11)	%
Capital Markets	Capital Markets	448.0			684.5		(236.5)	(35)		(34)		Capital Markets	435.8			595.2		(159.4)	(27)		(28)
Work Dynamics	Work Dynamics	3,374.6			3,310.5		64.1	2		3		Work Dynamics	3,514.2			3,289.8		224.4	7		6
JLL Technologies	JLL Technologies	60.6			50.7		9.9	20		20		JLL Technologies	58.9			56.5		2.4	4		4
LaSalle	LaSalle	143.9			114.5		29.4	26		26		LaSalle	110.1			124.5		(14.4)	(12)		(13)
Revenue	Revenue	$	5,052.5		5,278.4		(225.9)	(4)	%	(4)	%	Revenue	$	5,111.4		5,177.5		(66.1)	(1)	%	(2)	%
Gross contract costs	Gross contract costs	(3,205.8)			(3,128.4)		(77.4)	2		3		Gross contract costs	(3,327.1)			(3,123.7)		(203.4)	7		6
Net non-cash MSR and mortgage banking derivative activity	Net non-cash MSR and mortgage banking derivative activity	0.6			(11.2)		11.8	(105)		(106)		Net non-cash MSR and mortgage banking derivative activity	7.1			(5.2)		12.3	(237)		(236)
Fee revenue	Fee revenue	$	1,847.3		2,138.8		(291.5)	(14)	%	(13)	%	Fee revenue	$	1,791.4		2,048.6		(257.2)	(13)	%	(13)	%
Markets Advisory	Markets Advisory	741.1			855.8		(114.7)	(13)		(13)		Markets Advisory	704.0			847.9		(143.9)	(17)		(17)
Capital Markets	Capital Markets	435.5			660.7		(225.2)	(34)		(34)		Capital Markets	431.4			579.1		(147.7)	(26)		(27)
Work Dynamics	Work Dynamics	477.8			467.0		10.8	2		3		Work Dynamics	497.7			452.9		44.8	10		9
JLL Technologies	JLL Technologies	56.5			48.0		8.5	18		18		JLL Technologies	55.6			52.7		2.9	6		5
LaSalle	LaSalle	136.4			107.3		29.1	27		28		LaSalle	102.7			116.0		(13.3)	(11)		(13)
Compensation and benefits, excluding gross contract costs	Compensation and benefits, excluding gross contract costs	$	1,332.5		1,530.4		(197.9)	(13)	%	(12)	%	Compensation and benefits, excluding gross contract costs	$	1,299.8		1,472.4		(172.6)	(12)	%	(13)	%
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	293.3			303.2		(9.9)	(3)		(2)		Operating, administrative and other expenses, excluding gross contract costs	274.7			302.1		(27.4)	(9)		(12)
Depreciation and amortization	Depreciation and amortization	59.9			55.4		4.5	8		9		Depreciation and amortization	59.1			55.7		3.4	6		5
Restructuring and acquisition charges	Restructuring and acquisition charges	11.8			25.9		(14.1)	(54)		(57)		Restructuring and acquisition charges	31.6			21.0		10.6	50		46
Total fee-based operating expenses	Total fee-based operating expenses	1,697.5			1,914.9		(217.4)	(11)		(11)		Total fee-based operating expenses	1,665.2			1,851.2		(186.0)	(10)		(11)
Gross contract costs	Gross contract costs	3,205.8			3,128.4		77.4	2		3		Gross contract costs	3,327.1			3,123.7		203.4	7		6
Total operating expenses	Total operating expenses	$	4,903.3		5,043.3		(140.0)	(3)	%	(2)	%	Total operating expenses	$	4,992.3		4,974.9		17.4	—	%	(1)	%
Operating income	Operating income	$	149.2		235.1		(85.9)	(37)	%	(37)	%	Operating income	$	119.1		202.6		(83.5)	(41)	%	(39)	%
Equity (losses) earnings	Equity (losses) earnings	$	(103.5)		53.6		(157.1)	(293)	%	(293)	%	Equity (losses) earnings	$	(11.2)		0.5		(11.7)	n.m.
Adjusted EBITDA	Adjusted EBITDA	$	116.1		359.0		(242.9)	(68)	%	(68)	%	Adjusted EBITDA	$	205.2		276.2		(71.0)	(26)	%	(23)	%
Net income margin attributable to common shareholders (USD basis)	Net income margin attributable to common shareholders (USD basis)	—		%	3.7	%	(370) bps			n/a		Net income margin attributable to common shareholders (USD basis)	1.2		%	2.7	%	(150) bps			n/a
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	6.2		%	16.8	%	(1,050) bps			(1,060) bps		Adjusted EBITDA margin (local currency basis)	12.0		%	13.5	%	(200) bps			(150) bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	6.3		%								Adjusted EBITDA margin (USD basis)	11.5		%

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Consolidated Operating Results (continued)


		Six Months Ended June 30,					Change in			% Change in Local Currency			Nine Months Ended September 30,					Change in			% Change in Local Currency
($ in millions)	($ in millions)	2023			2022		U.S. dollars					($ in millions)	2023			2022		U.S. dollars
Markets Advisory	Markets Advisory	$	1,931.8		2,117.7		(185.9)	(9)	%	(7)	%	Markets Advisory	$	2,924.2		3,229.2		(305.0)	(9)	%	(9)	%
Capital Markets	Capital Markets	805.1			1,285.1		(480.0)	(37)		(36)		Capital Markets	1,240.9			1,880.3		(639.4)	(34)		(34)
Work Dynamics	Work Dynamics	6,650.8			6,344.1		306.7	5		7		Work Dynamics	10,165.0			9,633.9		531.1	6		6
JLL Technologies	JLL Technologies	122.0			100.1		21.9	22		22		JLL Technologies	180.9			156.6		24.3	16		16
LaSalle	LaSalle	258.3			232.8		25.5	11		13		LaSalle	368.4			357.3		11.1	3		4
Revenue	Revenue	$	9,768.0		10,079.8		(311.8)	(3)	%	(2)	%	Revenue	$	14,879.4		15,257.3		(377.9)	(2)	%	(2)	%
Gross contract costs	Gross contract costs	(6,339.1)			(6,032.9)		(306.2)	5		7		Gross contract costs	(9,666.2)			(9,156.6)		(509.6)	6		7
Net non-cash MSR and mortgage banking derivative activity	Net non-cash MSR and mortgage banking derivative activity	2.4			(7.6)		10.0	(132)		(132)		Net non-cash MSR and mortgage banking derivative activity	9.5			(12.8)		22.3	(174)		(174)
Fee revenue	Fee revenue	$	3,431.3		4,039.3		(608.0)	(15)	%	(14)	%	Fee revenue	$	5,222.7		6,087.9		(865.2)	(14)	%	(14)	%
Markets Advisory	Markets Advisory	1,368.4			1,597.0		(228.6)	(14)		(13)		Markets Advisory	2,072.4			2,444.9		(372.5)	(15)		(15)
Capital Markets	Capital Markets	785.1			1,252.2		(467.1)	(37)		(36)		Capital Markets	1,216.5			1,831.3		(614.8)	(34)		(33)
Work Dynamics	Work Dynamics	919.8			877.5		42.3	5		7		Work Dynamics	1,417.5			1,330.4		87.1	7		7
JLL Technologies	JLL Technologies	114.3			93.3		21.0	23		23		JLL Technologies	169.9			146.0		23.9	16		16
LaSalle	LaSalle	243.7			219.3		24.4	11		14		LaSalle	346.4			335.3		11.1	3		4
Compensation and benefits, excluding gross contract costs	Compensation and benefits, excluding gross contract costs	$	2,512.6		2,908.2		(395.6)	(14)	%	(12)	%	Compensation and benefits, excluding gross contract costs	$	3,812.4		4,380.6		(568.2)	(13)	%	(12)	%
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	584.4			572.7		11.7	2		4		Operating, administrative and other expenses, excluding gross contract costs	859.1			874.8		(15.7)	(2)		(2)
Depreciation and amortization	Depreciation and amortization	117.4			109.8		7.6	7		9		Depreciation and amortization	176.5			165.5		11.0	7		8
Restructuring and acquisition charges	Restructuring and acquisition charges	47.5			45.4		2.1	5		6		Restructuring and acquisition charges	79.1			66.4		12.7	19		18
Total fee-based operating expenses	Total fee-based operating expenses	3,261.9			3,636.1		(374.2)	(10)		(9)		Total fee-based operating expenses	4,927.1			5,487.3		(560.2)	(10)		(10)
Gross contract costs	Gross contract costs	6,339.1			6,032.9		306.2	5		7		Gross contract costs	9,666.2			9,156.6		509.6	6		7
Total operating expenses	Total operating expenses	$	9,601.0		9,669.0		(68.0)	(1)	%	1	%	Total operating expenses	$	14,593.3		14,643.9		(50.6)	—	%	—	%
Operating income	Operating income	$	167.0		410.8		(243.8)	(59)	%	(61)	%	Operating income	$	286.1		613.4		(327.3)	(53)	%	(53)	%
Equity (losses) earnings	Equity (losses) earnings	$	(106.1)		72.1		(178.2)	(247)	%	(247)	%	Equity (losses) earnings	$	(117.3)		72.6		(189.9)	(262)	%	(262)	%
Adjusted EBITDA	Adjusted EBITDA	$	225.1		632.6		(407.5)	(64)	%	(65)	%	Adjusted EBITDA	$	430.3		908.8		(478.5)	(53)	%	(52)	%
Net (loss) income margin attributable to common shareholders (USD basis)		(0.1)		%	3.4	%	(350) bps			n/a
Net income margin attributable to common shareholders (USD basis)												Net income margin attributable to common shareholders (USD basis)	0.4		%	3.1	%	(270) bps			n/a
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	6.3		%	15.7	%	(910) bps			(940) bps		Adjusted EBITDA margin (local currency basis)	8.3		%	14.9	%	(670) bps			(660) bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	6.6		%								Adjusted EBITDA margin (USD basis)	8.2		%

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Non-GAAP Financial Measures

Management uses certain non-GAAP financial measures to develop budgets and forecasts, measure and reward performance against those budgets and forecasts, and enhance comparability to prior periods. These measures are believed to be useful to investors and other external stakeholders as supplemental measures of core operating performance and include the following:

•Fee revenue and Fee-based operating expenses;

•Adjusted EBITDA attributable to common shareholders ("Adjusted EBITDA") and Adjusted EBITDA margin (measured on fee revenue); and

•Percentage changes against prior periods, presented on a local currency basis.

However, non-GAAP financial measures should not be considered alternatives to measures determined in accordance with U.S. GAAP. Any measure that eliminates components of a company’s capital structure, cost of operations or investments, or other results has limitations as a performance measure. In light of these limitations, management also considers U.S. GAAP financial measures and does not rely solely on non-GAAP financial measures. Because our non-GAAP financial measures are not calculated in accordance with U.S. GAAP, they may not be comparable to similarly titled measures used by other companies.

Adjustments to U.S. GAAP Financial Measures Used to Calculate non-GAAP Financial Measures

Gross contract costs represent certain costs associated with client-dedicated employees and third-party vendors and subcontractors and are directly or indirectly reimbursed through the fees we receive. These costs are presented on a gross basis in Operating expenses with the equal amount of corresponding fees in Revenue. Excluding gross contract costs from both Fee revenue and Fee-based operating expenses more accurately reflects how we manage our expense base and operating margins and also enables a more consistent performance assessment across a portfolio of contracts with varying payment terms and structures.

Net non-cash MSR and mortgage banking derivative activity consists of the balances presented within Revenue composed of (i) derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity and (ii) gains recognized from the retention of MSR upon origination and sale of mortgage loans, offset by (iii) amortization of MSR intangible assets over the period that net servicing income is projected to be received. Non-cash derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity are calculated as the estimated fair value of loan commitments and subsequent changes thereof, primarily represented by the estimated net cash flows associated with future servicing rights. MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated net cash flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets segment. Excluding net non-cash MSR and mortgage banking derivative activity reflects how we manage and evaluate performance because the excluded activity is non-cash in nature.

Restructuring and acquisition charges primarily consist of (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership or transformation of business processes; (ii) acquisition, transaction and integration-related charges, including fair value adjustments, which are generally non-cash in the periods such adjustments are made, to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets; and (iii) other restructuring, including lease exit charges. Such activity is excluded as the amounts are generally either non-cash in nature or the anticipated benefits from the expenditures would not likely be fully realized until future periods. Restructuring and acquisition charges are excluded from segment operating results and therefore not a line item in the segments’ reconciliation to Adjusted EBITDA.

Gain/loss on disposition reflects the gain or loss recognized on the sale or disposition of businesses. Given the low frequency of business disposals by the company historically, the gain or loss directly associated with such activity is excluded as it is not considered indicative of core operating performance. In 2023, the $0.5 million net loss included $1.8 million of loss related to the disposition of a business in Markets ~~Advisory.~~Advisory, partially offset by a $1.3 million gain related to the disposition of a business in Markets Advisory and Capital Markets. In 2022, the $7.5 million net loss included $10.5 million of loss related to the disposition of the Russia business, partially offset by a $3.0 million gain related to a disposition within JLL Technologies.

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Interest on Employee Loans, Net of Forgiveness reflects interest accrued on employee loans less the amount of accrued interest forgiven. Certain employees (predominantly in Leasing and Capital Markets) receive cash payments structured as loans, with interest. Employees earn forgiveness of the loan based on performance, generally calculated as a percentage of revenue production. Such forgiven amounts are reflected in Compensation and benefits expense. Given the interest accrued on these employee loans and subsequent forgiveness are non-cash and the amounts perfectly offset over the life of the loan, the activity is not indicative of core operating performance and is excluded from non-GAAP measures.

Reconciliation of Non-GAAP Financial Measures

Below are reconciliations of (i) Revenue to Fee revenue and (ii) Operating expenses to Fee-based operating expenses.


		Three Months Ended June 30,			Six Months Ended June 30,				Three Months Ended September 30,			Nine Months Ended September 30,
(in millions)	(in millions)	2023		2022	2023		2022	(in millions)	2023		2022	2023		2022
Revenue	Revenue	$	5,052.5	5,278.4	$	9,768.0	10,079.8	Revenue	$	5,111.4	5,177.5	$	14,879.4	15,257.3
Adjustments:	Adjustments:							Adjustments:
Gross contract costs	Gross contract costs	(3,205.8)		(3,128.4)	(6,339.1)		(6,032.9)	Gross contract costs	(3,327.1)		(3,123.7)	(9,666.2)		(9,156.6)
Net non-cash MSR and mortgage banking derivative activity	Net non-cash MSR and mortgage banking derivative activity	0.6		(11.2)	2.4		(7.6)	Net non-cash MSR and mortgage banking derivative activity	7.1		(5.2)	9.5		(12.8)
Fee revenue	Fee revenue	$	1,847.3	2,138.8	$	3,431.3	4,039.3	Fee revenue	$	1,791.4	2,048.6	$	5,222.7	6,087.9

Operating expenses	Operating expenses	$	4,903.3	5,043.3	$	9,601.0	9,669.0	Operating expenses	$	4,992.3	4,974.9	$	14,593.3	14,643.9
Less: Gross contract costs	Less: Gross contract costs	(3,205.8)		(3,128.4)	(6,339.1)		(6,032.9)	Less: Gross contract costs	(3,327.1)		(3,123.7)	(9,666.2)		(9,156.6)
Fee-based operating expenses	Fee-based operating expenses	$	1,697.5	1,914.9	$	3,261.9	3,636.1	Fee-based operating expenses	$	1,665.2	1,851.2	$	4,927.1	5,487.3

Operating income	Operating income	$	149.2	235.1	$	167.0	410.8	Operating income	$	119.1	202.6	$	286.1	613.4

Below is a reconciliation of Net income ~~(loss)~~ attributable to common shareholders to EBITDA and Adjusted EBITDA.


		Three Months Ended June 30,			Six Months Ended June 30,				Three Months Ended September 30,			Nine Months Ended September 30,
(in millions)	(in millions)	2023		2022	2023		2022	(in millions)	2023		2022	2023		2022
Net income (loss) attributable to common shareholders		$	2.5	193.9	$	(6.7)	339.5
Net income attributable to common shareholders								Net income attributable to common shareholders	$	59.7	140.2	$	53.0	479.7
Add:	Add:							Add:
Interest expense, net of interest income	Interest expense, net of interest income	40.5		15.7	66.8		25.9	Interest expense, net of interest income	37.1		23.2	103.9		49.1
Income tax provision (benefit)		0.8		72.8	(1.5)		113.1
Income tax provision								Income tax provision	14.5		42.3	13.0		155.4
Depreciation and amortization(1)	Depreciation and amortization(1)	59.0		54.4	115.5		108.8	Depreciation and amortization(1)	58.1		54.7	173.6		163.5
EBITDA	EBITDA	$	102.8	336.8	$	174.1	587.3	EBITDA	$	169.4	260.4	$	343.5	847.7
Adjustments:	Adjustments:							Adjustments:
Restructuring and acquisition charges	Restructuring and acquisition charges	11.8		25.9	47.5		45.4	Restructuring and acquisition charges	31.6		21.0	79.1		66.4
Net loss on disposition		1.8		7.5	1.8		7.5
Net (gain) loss on disposition								Net (gain) loss on disposition	(1.3)		—	0.5		7.5
Net non-cash MSR and mortgage banking derivative activity	Net non-cash MSR and mortgage banking derivative activity	0.6		(11.2)	2.4		(7.6)	Net non-cash MSR and mortgage banking derivative activity	7.1		(5.2)	9.5		(12.8)
Interest on employee loans, net of forgiveness	Interest on employee loans, net of forgiveness	(0.9)		—	(0.7)		—	Interest on employee loans, net of forgiveness	(1.6)		—	(2.3)		—
Adjusted EBITDA	Adjusted EBITDA	$	116.1	359.0	$	225.1	632.6	Adjusted EBITDA	$	205.2	276.2	$	430.3	908.8

(1) This adjustment excludes the noncontrolling interest portion of amortization of acquisition-related intangibles which is not attributable to common shareholders.

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In discussing our operating results, we report Adjusted EBITDA margins and refer to percentage changes in local currency, unless otherwise noted. Amounts presented on a local currency basis are calculated by translating the current period results of our foreign operations to U.S. dollars using the foreign currency exchange rates from the comparative period. We believe this methodology provides a framework for assessing performance and operations excluding the effect of foreign currency fluctuations.

The following table reflects the reconciliation to local currency amounts for consolidated (i) Revenue, (ii) Fee revenue, (iii) Operating income and (iv) Adjusted EBITDA.


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	($ in millions)	2023		% Change		2023		% Change		($ in millions)	2023		% Change		2023		% Change
Revenue:	Revenue:									Revenue:
At current period exchange rates	At current period exchange rates	$	5,052.5	(4)	%	$	9,768.0	(3)	%	At current period exchange rates	$	5,111.4	(1)	%	$	14,879.4	(2)	%
Impact of change in exchange rates	Impact of change in exchange rates	37.5		n/a		158.1		n/a		Impact of change in exchange rates	(39.6)		n/a		118.5		n/a
At comparative period exchange rates	At comparative period exchange rates	$	5,090.0	(4)	%	$	9,926.1	(2)	%	At comparative period exchange rates	$	5,071.8	(2)	%	$	14,997.9	(2)	%

Fee revenue:	Fee revenue:									Fee revenue:
At current period exchange rates	At current period exchange rates	$	1,847.3	(14)	%	$	3,431.3	(15)	%	At current period exchange rates	$	1,791.4	(13)	%	$	5,222.7	(14)	%
Impact of change in exchange rates	Impact of change in exchange rates	9.5		n/a		50.3		n/a		Impact of change in exchange rates	(18.4)		n/a		31.9		n/a
At comparative period exchange rates	At comparative period exchange rates	$	1,856.8	(13)	%	$	3,481.6	(14)	%	At comparative period exchange rates	$	1,773.0	(13)	%	$	5,254.6	(14)	%

Operating income:	Operating income:									Operating income:
At current period exchange rates	At current period exchange rates	$	149.2	(37)	%	$	167.0	(59)	%	At current period exchange rates	$	119.1	(41)	%	$	286.1	(53)	%
Impact of change in exchange rates	Impact of change in exchange rates	(1.5)		n/a		(6.6)		n/a		Impact of change in exchange rates	5.0		n/a		1.6		n/a
At comparative period exchange rates	At comparative period exchange rates	$	147.7	(37)	%	$	160.4	(61)	%	At comparative period exchange rates	$	124.1	(39)	%	$	287.7	(53)	%

Adjusted EBITDA:	Adjusted EBITDA:									Adjusted EBITDA:
At current period exchange rates	At current period exchange rates	$	116.1	(68)	%	$	225.1	(64)	%	At current period exchange rates	$	205.2	(26)	%	$	430.3	(53)	%
Impact of change in exchange rates	Impact of change in exchange rates	(1.1)		n/a		(4.1)		n/a		Impact of change in exchange rates	6.8		n/a		5.9		n/a
At comparative period exchange rates	At comparative period exchange rates	$	115.0	(68)	%	$	221.0	(65)	%	At comparative period exchange rates	$	212.0	(23)	%	$	436.2	(52)	%

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Revenue

For the ~~second~~third quarter, ~~revenue~~Revenue and fee revenue decreased 4%2% and 13%, respectively, compared with the prior-year quarter. Businesses with resilient revenues continued to deliver fee revenue growth for the quarter, as ~~JLL Technologies grew 18%;~~ Property Management, within Markets Advisory, grew 9%12%; ~~and~~ Workplace Management, within Work Dynamics, grew 2%5%; and JLL Technologies grew 5%. Consistent with the first ~~quarter,~~half of the year, economic ~~headwinds~~uncertainty and ~~continued~~elevated interest ~~rate uncertainty~~rates along with geopolitical instability in several geographies adversely impacted most of our transaction-based businesses, notably Investment Sales and Debt/Equity Advisory within Capital Markets, and Leasing within Markets ~~Advisory, and Portfolio Services and Other within Work Dynamics.~~Advisory. However, Project Management, within Work Dynamics, was up 8% due to continued ~~demand~~project execution in several ~~geographies.~~geographies, and Portfolio Services and Other within Work Dynamics benefited from outsized transaction activity in the current quarter. The decline in LaSalle's ~~double-digit top-line growth~~revenue was ~~attributable~~largely due to ~~higher~~the absence of incentive fees.

For the first ~~half~~nine months of 2023, consolidated ~~revenue~~Revenue and fee revenue were down 2% and 14%, respectively, compared with 2022. The year-to-date drivers of change between the two years were similar to the quarter-to-date drivers noted ~~above.~~above except for Portfolio Services and Other, which had a year-over-year drop in revenue for the first half of 2023 reflecting the general correlation to leasing activity.

The following highlights ~~revenue~~Revenue and fee revenue by segment, for the current and prior-year quarters ($ in millions). Refer to segment operating results for further detail.

Our consolidated fee revenue declined ~~14%~~13% in U.S. dollars (“USD”) and 13% in local currency for the ~~second~~third quarter of 2023, compared with 2022. Year-to-date, consolidated fee revenue declined ~~15%~~14% in USD and 14% in local currency compared with last year. The quarter-to-date and year-to-date spreads were relatively consistent given the mix of currencies which strengthened or weakened against the U.S. dollar.

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Operating Expenses

Consolidated operating expenses were ~~$4.9~~$5.0 billion for the ~~second~~third quarter, ~~down 2%~~a slight decrease from the same period in 2022, and ~~$9.6~~$14.6 billion for the first ~~half~~nine months of 2023, ~~up 1% from~~which was relatively flat to 2022, while consolidated fee-based operating expenses were $1.7 billion for the ~~second~~third quarter, down 11% from the prior-year quarter, and ~~$3.3~~$4.9 billion for the first ~~six~~nine months of 2023, down 9%10%. The decrease in fee-based operating expenses was primarily attributable to our Capital Markets and Markets Advisory segments, partially offset by revenue-related expense growth in Work ~~Dynamics and LaSalle. The decline in JLL Technologies expense was associated with carried interest.~~

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Dynamics.

For the ~~second~~third quarter of 2023, Restructuring and acquisition charges ~~decreased~~increased compared with the prior-year period, driven by a (i) ~~less expense associated with M&A activities, (ii) lower~~higher severance and other employment-related charges from cost-out actions and ~~(iii)~~(ii) expenses ~~in the prior year~~ associated with ~~the disposition of~~rationalizing our ~~business~~real estate footprint in ~~Russia;~~certain geographies; refer to following table for further detail.


		Three Months Ended June 30,			Six Months Ended June 30,				Three Months Ended September 30,			Nine Months Ended September 30,
(in millions)	(in millions)	2023		2022	2023		2022	(in millions)	2023		2022	2023		2022
Severance and other employment-related charges	Severance and other employment-related charges	$	5.8	8.3	$	31.5	11.6	Severance and other employment-related charges	$	16.4	9.4	$	47.9	21.0
Restructuring, pre-acquisition and post-acquisition charges	Restructuring, pre-acquisition and post-acquisition charges	6.6		16.6	16.6		33.5	Restructuring, pre-acquisition and post-acquisition charges	15.1		11.7	31.7		45.2
Fair value adjustments that resulted in a net (decrease) increase to earn-out liabilities from prior-period acquisition activity		(0.6)		1.0	(0.6)		0.3
Total restructuring and acquisition charges		$	11.8	25.9	$	47.5	45.4
Fair value adjustments that resulted in a net increase (decrease) to earn-out liabilities from prior-period acquisition activity								Fair value adjustments that resulted in a net increase (decrease) to earn-out liabilities from prior-period acquisition activity	0.1		(0.1)	(0.5)		0.2
Restructuring and acquisition charges								Restructuring and acquisition charges	$	31.6	21.0	$	79.1	66.4

Interest Expense

Interest expense, net of interest income, for the three and ~~six~~nine months ended ~~June~~September 30, 2023 was ~~$40.5~~$37.1 million and ~~$66.8~~$103.9 million compared with ~~$15.7~~$23.2 million and ~~$25.9~~$49.1 million in the prior-year periods. The increase primarily reflected a higher effective interest rate on our facilities ~~as well as~~but also an increase in the average outstanding borrowings. Refer to the Liquidity and Capital Resources section for additional details on our debt.

Equity (Losses) Earnings

The following details ~~equity~~Equity (losses) earnings by relevant segment. Refer to the segment discussions for additional details.


		Three Months Ended June 30,			Six Months Ended June 30,				Three Months Ended September 30,			Nine Months Ended September 30,
(in millions)	(in millions)	2023		2022	2023		2022	(in millions)	2023		2022	2023		2022
JLL Technologies	JLL Technologies	$	(103.9)	44.7	$	(99.0)	63.5	JLL Technologies	$	(3.0)	1.0	$	(102.0)	64.5
LaSalle	LaSalle	(5.1)		7.0	(13.9)		5.1	LaSalle	(9.1)		(1.1)	(23.0)		4.0
Other	Other	5.5		1.9	6.8		3.5	Other	0.9		0.6	7.7		4.1
Total equity (losses) earnings		$	(103.5)	53.6	$	(106.1)	72.1
Equity (losses) earnings								Equity (losses) earnings	$	(11.2)	0.5	$	(117.3)	72.6

Other ~~(Expense)~~ Income

Other non-operating ~~expense~~income was ~~$1.2~~$3.0 million and ~~$1.1~~$1.9 million for the three and ~~six~~nine months ended ~~June~~September 30, 2023, compared with income of ~~$135.3~~$0.5 million and ~~$135.5~~$136.0 million for the comparable periods in 2022. During the second quarter of 2022, Other income included a $142.3 million gain by a consolidated variable interest entity in which we held no equity interest. This gain, therefore, is also included in ~~net~~Net income attributable to noncontrolling interest, and as a result, there is no net impact to Net income attributable to common shareholders (or other measures like Adjusted EBITDA, Adjusted net income and Adjusted diluted earnings per share). Also in the second quarter of 2022, we recognized a $10.5 million loss related to the disposition of our Russia business.

Income Taxes

The ~~income~~Income tax provision was ~~$0.8~~$14.5 million and $13.0 million for the three and nine months ended ~~June 30, 2023, while the income tax benefit was $1.5 million for the six months ended June~~September 30, 2023, representing an effective tax rate ("ETR") of ~~21.0% for both periods.~~19.6% and 19.3%, respectively. For the three and ~~six~~nine months ended ~~June~~September 30, 2022, the income tax provision was ~~$72.8~~$42.3 million and ~~$113.1~~$155.4 million, representing an ETR of ~~17.8%~~23.4% and ~~19.1%~~20.1%, respectively.

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Net Income ~~(Loss)~~ and Adjusted EBITDA

Net income attributable to common shareholders was ~~$2.5~~$59.7 million for the three months ended ~~June~~September 30, 2023, compared with ~~$193.9~~$140.2 million in the prior-year quarter. For the first ~~half~~nine months of 2023, ~~net loss~~Net income attributable to common shareholders was ~~$6.7~~$53.0 million, compared with ~~net income of $339.5~~$479.7 million in 2022. Adjusted EBITDA was ~~$116.1~~$205.2 million and ~~$225.1~~$430.3 million for the ~~second~~third quarter and first ~~half~~nine months of 2023, compared with ~~$359.0~~$276.2 million and ~~$632.6~~$908.8 million in the respective prior-year periods.

Net income margin attributable to common shareholders for the ~~second~~third quarter was ~~zero,~~1.2%, compared with ~~3.7%~~2.7% in the prior-year quarter. Adjusted EBITDA margin for the ~~second~~third quarter, calculated on a fee-revenue basis, was ~~6.3%~~11.5% in USD ~~(6.2%~~(12.0% in local currency), compared with ~~16.8%~~13.5% in 2022.

~~Approximately 740 basis points, or 70%, of the adjusted EBITDA margin contraction~~Margin was ~~driven~~impacted by lower transaction-based revenue and the change in ~~equity~~Equity earnings/losses, net of carried interest. ~~The residual decline was primarily due to lower transaction-based revenue, specifically Investment Sales, Debt/Equity Advisory, and Leasing. In addition,~~Partially offsetting these items were benefits of recent cost reduction actions ~~mostly offset investments to drive future growth.~~and lower variable compensation expense.

Segment Operating Results

We manage and report our operations as five business segments: Markets Advisory, Capital Markets, Work Dynamics, JLL Technologies and LaSalle. Markets Advisory offers a wide range of real estate services, including agency leasing and tenant representation, property management, and advisory and consulting services. Our Capital Markets service offerings include investment sales, debt and equity advisory, value and ~~debt~~risk advisory, and loan ~~servicing, and valuations.~~servicing. Our Work Dynamics business provides a broad suite of integrated services to occupiers of real estate, including facility and project management, as well as portfolio and other services. We consider "Property Management" to be services provided to non-occupying property investors and "Workplace Management" to be services provided to owner-occupiers. Our JLL Technologies segment offers software products, solutions and services, while LaSalle provides investment management services on a global basis to institutional investors and high-net-worth individuals.

For segment reporting, (i) gross contract costs and (ii) 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. In addition, our measure of segment results also excludes Restructuring and acquisition charges.

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Markets Advisory


										% Change											% Change
		Three Months Ended June 30,					Change in			in Local			Three Months Ended September 30,					Change in			in Local
($ in millions)	($ in millions)	2023			2022		U.S. dollars			Currency		($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	Revenue	$	1,025.4		1,118.2		(92.8)	(8)	%	(7)	%	Revenue	$	992.4		1,111.5		(119.1)	(11)	%	(11)	%
Gross contract costs	Gross contract costs	(284.3)			(262.4)		(21.9)	8		10		Gross contract costs	(288.4)			(263.6)		(24.8)	9		10
Fee revenue	Fee revenue	$	741.1		855.8		(114.7)	(13)	%	(13)	%	Fee revenue	$	704.0		847.9		(143.9)	(17)	%	(17)	%
Leasing	Leasing	588.0			703.5		(115.5)	(16)		(16)		Leasing	542.5			696.4		(153.9)	(22)		(22)
Property Management	Property Management	131.0			122.2		8.8	7		9		Property Management	138.4			122.9		15.5	13		12
Advisory, Consulting and Other	Advisory, Consulting and Other	22.1			30.1		(8.0)	(27)		(25)		Advisory, Consulting and Other	23.1			28.6		(5.5)	(19)		(19)
Compensation and benefits, excluding gross contract costs	Compensation and benefits, excluding gross contract costs	$	546.4		618.5		(72.1)	(12)	%	(11)	%	Compensation and benefits, excluding gross contract costs	$	531.2		620.4		(89.2)	(14)	%	(15)	%
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	93.3			103.8		(10.5)	(10)		(9)		Operating, administrative and other expenses, excluding gross contract costs	86.5			96.9		(10.4)	(11)		(11)

Depreciation and amortization	Depreciation and amortization	17.4			17.3		0.1	1		2		Depreciation and amortization	16.9			17.6		(0.7)	(4)		(4)
Segment fee-based operating expenses (excluding restructuring and acquisition charges)	Segment fee-based operating expenses (excluding restructuring and acquisition charges)	657.1			739.6		(82.5)	(11)		(11)		Segment fee-based operating expenses (excluding restructuring and acquisition charges)	634.6			734.9		(100.3)	(14)		(14)
Gross contract costs	Gross contract costs	284.3			262.4		21.9	8		10		Gross contract costs	288.4			263.6		24.8	9		10
Segment operating expenses	Segment operating expenses	$	941.4		1,002.0		(60.6)	(6)	%	(5)	%	Segment operating expenses	$	923.0		998.5		(75.5)	(8)	%	(8)	%
Equity (losses) earnings		$	(0.1)		0.4		(0.5)	(125)	%	(97)	%
Equity earnings (losses)												Equity earnings (losses)	$	0.1		(0.2)		0.3	150	%	120	%
Adjusted EBITDA	Adjusted EBITDA	$	99.4		134.0		(34.6)	(26)	%	(26)	%	Adjusted EBITDA	$	85.1		132.1		(47.0)	(36)	%	(33)	%
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	13.2		%	15.7	%	(230) bps			(250) bps		Adjusted EBITDA margin (local currency basis)	12.6		%	15.6	%	(350) bps			(300) bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	13.4		%								Adjusted EBITDA margin (USD basis)	12.1		%

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Markets Advisory (continued)


										% Change											% Change
		Six Months Ended June 30,					Change in			in Local			Nine Months Ended September 30,					Change in			in Local
($ in millions)	($ in millions)	2023			2022		U.S. dollars			Currency		($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	Revenue	$	1,931.8		2,117.7		(185.9)	(9)	%	(7)	%	Revenue	$	2,924.2		3,229.2		(305.0)	(9)	%	(9)	%
Gross contract costs	Gross contract costs	(563.4)			(520.7)		(42.7)	8		11		Gross contract costs	(851.8)			(784.3)		(67.5)	9		11
Fee revenue	Fee revenue	$	1,368.4		1,597.0		(228.6)	(14)	%	(13)	%	Fee revenue	$	2,072.4		2,444.9		(372.5)	(15)	%	(15)	%
Leasing	Leasing	1,070.5			1,300.4		(229.9)	(18)		(17)		Leasing	1,613.0			1,996.8		(383.8)	(19)		(19)
Property Management	Property Management	258.1			240.8		17.3	7		10		Property Management	396.5			363.7		32.8	9		11
Advisory, Consulting and Other	Advisory, Consulting and Other	39.8			55.8		(16.0)	(29)		(26)		Advisory, Consulting and Other	62.9			84.4		(21.5)	(25)		(24)
Compensation and benefits, excluding gross contract costs	Compensation and benefits, excluding gross contract costs	$	1,007.4		1,159.3		(151.9)	(13)	%	(12)	%	Compensation and benefits, excluding gross contract costs	$	1,538.6		1,779.7		(241.1)	(14)	%	(13)	%
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	186.9			195.7		(8.8)	(4)		(3)		Operating, administrative and other expenses, excluding gross contract costs	273.4			292.6		(19.2)	(7)		(6)
Depreciation and amortization	Depreciation and amortization	34.5			34.4		0.1	—		2		Depreciation and amortization	51.4			52.0		(0.6)	(1)		—
Segment fee-based operating expenses	Segment fee-based operating expenses	1,228.8			1,389.4		(160.6)	(12)		(10)		Segment fee-based operating expenses	1,863.4			2,124.3		(260.9)	(12)		(12)
Gross contract costs	Gross contract costs	563.4			520.7		42.7	8		11		Gross contract costs	851.8			784.3		67.5	9		11
Segment operating expenses	Segment operating expenses	$	1,792.2		1,910.1		(117.9)	(6)	%	(5)	%	Segment operating expenses	$	2,715.2		2,908.6		(193.4)	(7)	%	(6)	%
Equity earnings	Equity earnings	$	0.2		0.9		(0.7)	(78)	%	(72)	%	Equity earnings	$	0.3		0.7		(0.4)	(57)	%	(58)	%
Adjusted EBITDA	Adjusted EBITDA	$	171.0		245.2		(74.2)	(30)	%	(31)	%	Adjusted EBITDA	$	256.1		377.3		(121.2)	(32)	%	(31)	%
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	12.3		%	15.4	%	(290) bps			(310) bps		Adjusted EBITDA margin (local currency basis)	12.4		%	15.4	%	(300) bps			(300) bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	12.5		%								Adjusted EBITDA margin (USD basis)	12.4		%

The declines in Markets Advisory revenue and fee revenue were largely driven by Leasing, both on a year-to-date and quarter-to-date basis, ~~were predominantly driven by Leasing, which continues to reflect (i)~~and reflected lower transaction ~~volume~~volumes and a decline in average deal size across nearly all asset types, particularly in the office ~~and industrial sectors, and (ii) a decrease in average deal size across most asset types, most notably in the U.S. office~~ sector. ~~Specific to the office sector, our change in Leasing was in line with trends in global market volumes as gross absorption fell 14% globally, according to JLL Research.~~Continued economic uncertainty has delayed commercial real estate decision making, particularly for large-scale leasing actions. The decreases in Advisory, Consulting and Other for ~~both~~ the quarter and first ~~half of the year,~~nine months were substantially driven by the absence of revenues associated with a business exited during the fourth quarter of 2022. ~~These decreases were partially offset by~~ Property Management achieved top-line growth ~~which was~~for the quarter and year-to-date, primarily attributable to portfolio expansion in the Americas and incremental fees from interest-rate sensitive contract terms in the ~~United Kingdom.~~U.K.

The net decreases in segment operating expenses and segment fee-based operating expenses for the third quarter ~~compared with the prior-year quarter,~~and first nine months of 2023 were primarily due to (i) lower commissions ~~expense, correlated with the revenue decline, as well as~~and other revenue-related expenses, (ii) lower incentive compensation expense, reflecting segment ~~performance.~~performance and (iii) cost containment measures.

The ~~second-quarter adjusted EBITDA~~ margin ~~contraction~~decrease was predominantly attributable to the lower Leasing fee revenue, net of the ~~decreased~~lower operating expenses noted above.

Table of Contents

Capital Markets
% Change
Three Months Ended June 30, Change in in Local
($ in millions) 2023 2022 U.S. dollars Currency
Revenue $ 448.0 684.5 (236.5) (35) % (34) %
Gross contract costs (13.1) (12.6) (0.5) 4 6
Net non-cash MSR and mortgage banking derivative activity 0.6 (11.2) 11.8 (105) (106)
Fee revenue $ 435.5 660.7 (225.2) (34) % (34) %
Investment Sales, Debt/Equity Advisory and Other 309.9 528.0 (218.1) (41) (41)
Valuation Advisory 86.6 92.3 (5.7) (6) (5)
Loan Servicing 39.0 40.4 (1.4) (3) (3)
Compensation and benefits, excluding gross contract costs $ 335.4 469.9 (134.5) (29) % (28) %
Operating, administrative and other expenses, excluding gross contract costs 69.2 64.8 4.4 7 7
Depreciation and amortization 16.2 15.4 0.8 5 5
Segment fee-based operating expenses (excluding restructuring and acquisition charges) 420.8 550.1 (129.3) (24) (23)
Gross contract costs 13.1 12.6 0.5 4 6
Segment operating expenses $ 433.9 562.7 (128.8) (23) % (23 %)
Equity earnings $ 4.8 0.6 4.2 700 % 761 %
Adjusted EBITDA $ 36.0 126.7 (90.7) (72) % (72) %
Adjusted EBITDA margin (local currency basis) 8.2 % 19.2 % (1,090) bps (1,100) bps
Adjusted EBITDA margin (USD basis) 8.3 %


									% Change
	Three Months Ended September 30,					Change in			in Local
($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	$	435.8		595.2		(159.4)	(27)	%	(28)	%
Gross contract costs	(11.5)			(10.9)		(0.6)	6		1
Net non-cash MSR and mortgage banking derivative activity	7.1			(5.2)		12.3	(237)		(236)
Fee revenue	$	431.4		579.1		(147.7)	(26)	%	(27)	%
Investment Sales, Debt/Equity Advisory and Other	308.9			452.1		(143.2)	(32)		(33)
Value and Risk Advisory	84.4			86.5		(2.1)	(2)		(4)
Loan Servicing	38.1			40.5		(2.4)	(6)		(6)
Compensation and benefits, excluding gross contract costs	$	323.8		430.6		(106.8)	(25)	%	(26)	%
Operating, administrative and other expenses, excluding gross contract costs	58.3			66.0		(7.7)	(12)		(13)

Depreciation and amortization	16.4			15.2		1.2	8		8
Segment fee-based operating expenses (excluding restructuring and acquisition charges)	398.5			511.8		(113.3)	(22)		(23)
Gross contract costs	11.5			10.9		0.6	6		1
Segment operating expenses	$	410.0		522.7		(112.7)	(22)	%	(23	%)
Equity earnings	$	0.7		0.7		—	0	%	12	%
Adjusted EBITDA	$	50.3		83.2		(32.9)	(40)	%	(40)	%
Adjusted EBITDA margin (local currency basis)	11.7		%	14.4	%	(270) bps			(270) bps
Adjusted EBITDA margin (USD basis)	11.7		%

Table of Contents

Capital Markets (continued)


										% Change											% Change
		Six Months Ended June 30,					Change in			in Local			Nine Months Ended September 30,					Change in			in Local
($ in millions)	($ in millions)	2023			2022		U.S. dollars			Currency		($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	Revenue	$	805.1		1,285.1		(480.0)	(37)	%	(36)	%	Revenue	$	1,240.9		1,880.3		(639.4)	(34)	%	(34)	%
Gross contract costs	Gross contract costs	(22.4)			(25.3)		2.9	(11)		(9)		Gross contract costs	(33.9)			(36.2)		2.3	(6)		(6)
Net non-cash MSR and mortgage banking derivative activity	Net non-cash MSR and mortgage banking derivative activity	2.4			(7.6)		10.0	(132)		(132)		Net non-cash MSR and mortgage banking derivative activity	9.5			(12.8)		22.3	(174)		(174)
Fee revenue	Fee revenue	$	785.1		1,252.2		(467.1)	(37)	%	(36)	%	Fee revenue	$	1,216.5		1,831.3		(614.8)	(34)	%	(33)	%
Investment Sales, Debt/Equity Advisory and Other	Investment Sales, Debt/Equity Advisory and Other	545.1			996.5		(451.4)	(45)		(45)		Investment Sales, Debt/Equity Advisory and Other	854.0			1,448.6		(594.6)	(41)		(41)
Valuation Advisory		163.6			175.4		(11.8)	(7)		(4)
Value and Risk Advisory												Value and Risk Advisory	248.0			261.9		(13.9)	(5)		(4)
Loan Servicing	Loan Servicing	76.4			80.3		(3.9)	(5)		(5)		Loan Servicing	114.5			120.8		(6.3)	(5)		(5)
Compensation and benefits, excluding gross contract costs	Compensation and benefits, excluding gross contract costs	$	619.3		888.1		(268.8)	(30)	%	(29)	%	Compensation and benefits, excluding gross contract costs	$	943.1		1,318.7		(375.6)	(28)	%	(28)	%
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	125.3			120.7		4.6	4		6		Operating, administrative and other expenses, excluding gross contract costs	183.6			186.7		(3.1)	(2)		(1)
Depreciation and amortization	Depreciation and amortization	32.1			31.0		1.1	4		4		Depreciation and amortization	48.5			46.2		2.3	5		6
Segment fee-based operating expenses	Segment fee-based operating expenses	776.7			1,039.8		(263.1)	(25)		(24)		Segment fee-based operating expenses	1,175.2			1,551.6		(376.4)	(24)		(24)
Gross contract costs	Gross contract costs	22.4			25.3		(2.9)	(11)		(9)		Gross contract costs	33.9			36.2		(2.3)	(6)		(6)
Segment operating expenses	Segment operating expenses	$	799.1		1,065.1		(266.0)	(25)	%	(24)	%	Segment operating expenses	$	1,209.1		1,587.8		(378.7)	(24)	%	(23)	%
Equity earnings	Equity earnings	$	5.4		1.4		4.0	286	%	285	%	Equity earnings	$	6.1		2.1		4.0	190	%	195	%
Adjusted EBITDA	Adjusted EBITDA	$	46.7		244.9		(198.2)	(81)	%	(81)	%	Adjusted EBITDA	$	97.0		328.1		(231.1)	(70)	%	(71)	%
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	5.8		%	19.6	%	(1,370) bps			(1,380) bps		Adjusted EBITDA margin (local currency basis)	7.9		%	17.9	%	(990) bps			(1,000) bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	5.9		%								Adjusted EBITDA margin (USD basis)	8.0		%

The lower Capital Markets revenue and fee revenue ~~for~~continued to reflect the ~~quarter and first half of the year reflected muted~~meaningful drop in transaction ~~volume~~volumes compared with ~~2022.~~2022, both on a year-to-date and quarter-to-date basis, as ample capital continues to remain heavily sidelined with economic and interest rate uncertainty. This impact was most ~~acute~~pronounced in Investment Sales and Debt/Equity Advisory, which experienced declines across nearly all asset ~~classes~~sectors and ~~most~~ geographies compared with the ~~prior-year quarter. This outperformed~~prior year. Our performance outpaced broader market trends for the quarter and first nine months of 2023, as global ~~trends as second-quarter~~ market volumes for investment sales were down ~~54%~~46% in USD ~~(53%~~(48% in local currency), on a quarter-to-date basis, and 50% in USD (and local currency) on a year-to-date basis, according to JLL Research. The ~~net~~ decline in Loan Servicing ~~both on a year-to-date and quarter-to-date basis,~~ was attributable to lower prepayment fees (down ~~$3.7~~$3.8 million for the quarter and ~~$8.2~~$12.0 million for the first ~~half~~nine months of the year), as refinancing activity slowed over the last twelve months, ~~mostly offset by~~overshadowing continued growth in servicing fees from the portfolio originated under the Fannie Mae DUS program.

The net decreases in segment operating expenses and segment fee-based operating expenses for the quarter and first ~~half~~nine months of the year, ~~compared with~~against the ~~prior-year~~comparative periods, were almost entirely due to lower ~~commissions expense, correlated with the decline in revenue,~~revenue-related expenses, as well as lower incentive compensation expense, reflecting segment performance. While not as impactful on the year-to-date performance, the change in the loan loss reserve was a $7.0 million negative impact (reflected in Operating, administrative and other expenses) to the current quarter, compared with last year.

The ~~second-quarter adjusted EBITDA~~ margin ~~contraction~~reduction for the quarter was predominantly driven by ~~the meaningful decline in fee~~lower Investment Sales and Debt/Equity Advisory revenue ~~net of the expense drivers noted~~described above. ~~In addition, higher equity earnings, which are not expected to recur in future years, provided a modest performance boost for the current quarter.~~

Table of Contents

Work Dynamics


										% Change											% Change
		Three Months Ended June 30,					Change in			in Local			Three Months Ended September 30,					Change in			in Local
($ in millions)	($ in millions)	2023			2022		U.S. dollars			Currency		($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	Revenue	$	3,374.6		3,310.5		64.1	2	%	3	%	Revenue	$	3,514.2		3,289.8		224.4	7	%	6	%
Gross contract costs	Gross contract costs	(2,896.8)			(2,843.5)		(53.3)	2		3		Gross contract costs	(3,016.5)			(2,836.9)		(179.6)	6		6
Fee revenue	Fee revenue	$	477.8		467.0		10.8	2	%	3	%	Fee revenue	$	497.7		452.9		44.8	10	%	9	%
Workplace Management	Workplace Management	188.2			184.9		3.3	2		2		Workplace Management	195.1			183.6		11.5	6		5
Project Management	Project Management	229.7			214.9		14.8	7		8		Project Management	229.6			210.0		19.6	9		8
Portfolio Services and Other	Portfolio Services and Other	59.9			67.2		(7.3)	(11)		(11)		Portfolio Services and Other	73.0			59.3		13.7	23		21
Compensation and benefits, excluding gross contract costs	Compensation and benefits, excluding gross contract costs	$	321.0		304.0		17.0	6	%	6	%	Compensation and benefits, excluding gross contract costs	$	332.9		285.0		47.9	17	%	15	%
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	101.2			106.3		(5.1)	(5)		(4)		Operating, administrative and other expenses, excluding gross contract costs	103.3			114.6		(11.3)	(10)		(12)

Depreciation and amortization	Depreciation and amortization	19.9			17.0		2.9	17		18		Depreciation and amortization	19.7			17.6		2.1	12		9
Segment fee-based operating expenses (excluding restructuring and acquisition charges)	Segment fee-based operating expenses (excluding restructuring and acquisition charges)	442.1			427.3		14.8	3		4		Segment fee-based operating expenses (excluding restructuring and acquisition charges)	455.9			417.2		38.7	9		7
Gross contract costs	Gross contract costs	2,896.8			2,843.5		53.3	2		3		Gross contract costs	3,016.5			2,836.9		179.6	6		6
Segment operating expenses	Segment operating expenses	$	3,338.9		3,270.8		68.1	2	%	3	%	Segment operating expenses	$	3,472.4		3,254.1		218.3	7	%	6	%
Equity earnings	Equity earnings	$	0.8		0.9		(0.1)	(11)	%	(15)	%	Equity earnings	$	0.1		0.1		—	—	%	(34)	%
Adjusted EBITDA	Adjusted EBITDA	$	56.2		57.6		(1.4)	(2)	%	(3)	%	Adjusted EBITDA	$	61.6		53.4		8.2	15	%	17	%
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	11.6		%	12.4	%	(60) bps			(80) bps		Adjusted EBITDA margin (local currency basis)	12.7		%	11.8	%	60 bps			90 bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	11.8		%								Adjusted EBITDA margin (USD basis)	12.4		%

Table of Contents

Work Dynamics (continued)


										% Change											% Change
		Six Months Ended June 30,					Change in			in Local			Nine Months Ended September 30,					Change in			in Local
($ in millions)	($ in millions)	2023			2022		U.S. dollars			Currency		($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	Revenue	$	6,650.8		6,344.1		306.7	5	%	7	%	Revenue	$	10,165.0		9,633.9		531.1	6	%	6	%
Gross contract costs	Gross contract costs	(5,731.0)			(5,466.6)		(264.4)	5		7		Gross contract costs	(8,747.5)			(8,303.5)		(444.0)	5		6
Fee revenue	Fee revenue	$	919.8		877.5		42.3	5	%	7	%	Fee revenue	$	1,417.5		1,330.4		87.1	7	%	7	%
Workplace Management	Workplace Management	371.4			366.9		4.5	1		3		Workplace Management	566.5			550.5		16.0	3		4
Project Management	Project Management	440.6			390.6		50.0	13		15		Project Management	670.2			600.6		69.6	12		13
Portfolio Services and Other	Portfolio Services and Other	107.8			120.0		(12.2)	(10)		(9)		Portfolio Services and Other	180.8			179.3		1.5	1		1
Compensation and benefits, excluding gross contract costs	Compensation and benefits, excluding gross contract costs	$	626.0		585.8		40.2	7	%	9	%	Compensation and benefits, excluding gross contract costs	$	958.9		870.8		88.1	10	%	11	%
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	212.7			200.1		12.6	6		9		Operating, administrative and other expenses, excluding gross contract costs	316.0			314.7		1.3	—		2
Depreciation and amortization	Depreciation and amortization	39.2			33.5		5.7	17		20		Depreciation and amortization	58.9			51.1		7.8	15		16
Segment fee-based operating expenses	Segment fee-based operating expenses	877.9			819.4		58.5	7		10		Segment fee-based operating expenses	1,333.8			1,236.6		97.2	8		9
Gross contract costs	Gross contract costs	5,731.0			5,466.6		264.4	5		7		Gross contract costs	8,747.5			8,303.5		444.0	5		6
Segment operating expenses	Segment operating expenses	$	6,608.9		6,286.0		322.9	5	%	7	%	Segment operating expenses	$	10,081.3		9,540.1		541.2	6	%	7	%
Equity earnings	Equity earnings	$	1.2		1.2		—	—	%	—	%	Equity earnings	$	1.3		1.3		—	—	%	(3)	%
Adjusted EBITDA	Adjusted EBITDA	$	81.9		92.8		(10.9)	(12)	%	(15)	%	Adjusted EBITDA	$	143.5		146.2		(2.7)	(2)	%	(3)	%
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	8.5		%	10.6	%	(170) bps			(210) bps		Adjusted EBITDA margin (local currency basis)	9.9		%	11.0	%	(90) bps			(110) bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	8.9		%								Adjusted EBITDA margin (USD basis)	10.1		%

Work Dynamics revenue and fee revenue ~~increases compared with the prior-year quarter were driven by strength in~~growth was broad-based across service lines and included strong Project Management ~~and modest growth in Workplace Management, partially offset by lower Portfolio Services and Other. Project Management had continued demand~~results from ongoing project execution in certain geographies, most notably ~~Australia,~~the U.K., MENA, Italy and Southeast Asia for the third quarter (the United States, France, ~~MENA and~~ the U.K. and MENA for the ~~second quarter (U.S., France, MENA and the U.K. on a half-year view)~~first nine months of 2023). ~~The decline in~~ Portfolio Services ~~revenue reflected~~outperformed the prior year quarter primarily due to one large transaction on behalf of a client in the United States; the first half of the year was lower given the meaningful correlation ~~between Portfolio Services and Leasing~~with leasing activity. Workplace Management continued to deliver growth, highlighted by the ramp-up of new, global client wins that began in the third quarter.

The increases in segment operating expenses and segment fee-based operating expenses for the third quarter and first ~~half~~nine months of ~~the year,~~2023, compared with the prior-year ~~period,~~periods, were primarily due to revenue-related expense growth over the trailing twelve months. For the first nine months ~~and first-quarter~~of 2023, contract losses ~~(included~~ in ~~Operating, administrative and other expenses)~~the first half of the year related to certain ~~Tetris~~Project Management contracts in ~~Europe. For the second quarter, compared with the prior-year quarter, continued investments in technology and headcount to support contract wins and a charge related~~Europe also contributed to the ~~final settlement associated~~expense growth. These increases were partially offset with ~~a legal claim drove the increases in segment operating expenses and segment fee-based operating expenses.~~continued management of costs unrelated to revenue.

The net ~~second-quarter adjusted EBITDA~~ margin ~~contraction~~expansion in the current quarter was primarily attributable to the ~~decline in higher-margin~~revenue growth, notably from Portfolio Services, ~~revenue and~~together with continued investments in technology and headcount to support future growth. In addition, and partially offsetting these dilutive impacts, the prior-year margin reflected $4.1 million of net contract losses in Europe which did not recur this quarter.cost management, both as described above.

Table of Contents

JLL Technologies


										% Change											% Change
		Three Months Ended June 30,					Change in			in Local			Three Months Ended September 30,					Change in			in Local
($ in millions)	($ in millions)	2023			2022		U.S. dollars			Currency		($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	Revenue	$	60.6		50.7		9.9	20	%	20	%	Revenue	$	58.9		56.5		2.4	4	%	4	%
Gross contract costs	Gross contract costs	(4.1)			(2.7)		(1.4)	52		53		Gross contract costs	(3.3)			(3.8)		0.5	(13)		(12)
Fee revenue	Fee revenue	$	56.5		48.0		8.5	18	%	18	%	Fee revenue	$	55.6		52.7		2.9	6	%	5	%
Compensation and benefits, excluding gross contract costs(1)	Compensation and benefits, excluding gross contract costs(1)	$	45.3		65.8		(20.5)	(31)	%	(31	%)	Compensation and benefits, excluding gross contract costs(1)	$	48.7		57.7		(9.0)	(16)	%	(16	%)
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	12.5			13.9		(1.4)	(10)		(9)		Operating, administrative and other expenses, excluding gross contract costs	12.6			11.3		1.3	12		11

Depreciation and amortization	Depreciation and amortization	4.1			3.9		0.2	5		6		Depreciation and amortization	3.9			3.7		0.2	5		3
Segment fee-based operating expenses (excluding restructuring and acquisition charges)	Segment fee-based operating expenses (excluding restructuring and acquisition charges)	61.9			83.6		(21.7)	(26)		(26)		Segment fee-based operating expenses (excluding restructuring and acquisition charges)	65.2			72.7		(7.5)	(10)		(11)
Gross contract costs	Gross contract costs	4.1			2.7		1.4	52		53		Gross contract costs	3.3			3.8		(0.5)	(13)		(12)
Segment operating expenses	Segment operating expenses	$	66.0		86.3		(20.3)	(24	%)	(23	%)	Segment operating expenses	$	68.5		76.5		(8.0)	(10	%)	(11	%)
Equity (losses) earnings	Equity (losses) earnings	$	(103.9)		44.7		(148.6)	(332)	%	(332)	%	Equity (losses) earnings	$	(3.0)		1.0		(4.0)	(400)	%	(394)	%
Adjusted EBITDA	Adjusted EBITDA	$	(105.2)		12.9		(118.1)	(916)	%	(914)	%	Adjusted EBITDA	$	(8.7)		(15.3)		6.6	43	%	44	%
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	(186.9)		%	27.0	%	n.m.			n.m.		Adjusted EBITDA margin (local currency basis)	(15.5)		%	(29.0)	%	1,340 bps			1,350 bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	(186.2)		%								Adjusted EBITDA margin (USD basis)	(15.6)		%

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JLL Technologies (continued)


										% Change											% Change
		Six Months Ended June 30,					Change in			in Local			Nine Months Ended September 30,					Change in			in Local
($ in millions)	($ in millions)	2023			2022		U.S. dollars			Currency		($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	Revenue	$	122.0		100.1		21.9	22	%	22	%	Revenue	$	180.9		156.6		24.3	16	%	16	%
Gross contract costs	Gross contract costs	(7.7)			(6.8)		(0.9)	13		13		Gross contract costs	(11.0)			(10.6)		(0.4)	4		4
Fee revenue	Fee revenue	$	114.3		93.3		21.0	23	%	23	%	Fee revenue	$	169.9		146.0		23.9	16	%	16	%
Compensation and benefits, excluding gross contract costs(1)	Compensation and benefits, excluding gross contract costs(1)	$	106.6		128.0		(21.4)	(17)	%	(16	%)	Compensation and benefits, excluding gross contract costs(1)	$	155.3		185.7		(30.4)	(16)	%	(16	%)
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	27.2			28.1		(0.9)	(3)		(3)		Operating, administrative and other expenses, excluding gross contract costs	39.8			39.4		0.4	1		1
Depreciation and amortization	Depreciation and amortization	8.0			7.7		0.3	4		5		Depreciation and amortization	11.9			11.4		0.5	4		5
Segment fee-based operating expenses	Segment fee-based operating expenses	141.8			163.8		(22.0)	(13)		(13)		Segment fee-based operating expenses	207.0			236.5		(29.5)	(12)		(12)
Gross contract costs	Gross contract costs	7.7			6.8		0.9	13		13		Gross contract costs	11.0			10.6		0.4	4		4
Segment operating expenses	Segment operating expenses	$	149.5		170.6		(21.1)	(12)	%	(12	%)	Segment operating expenses	$	218.0		247.1		(29.1)	(12)	%	(11	%)
Equity (losses) earnings	Equity (losses) earnings	$	(99.0)		63.5		(162.5)	(256)	%	(256)	%	Equity (losses) earnings	$	(102.0)		64.5		(166.5)	(258)	%	(258)	%
Adjusted EBITDA	Adjusted EBITDA	$	(118.5)		0.6		(119.1)	n.m.		n.m.		Adjusted EBITDA	$	(127.2)		(14.7)		(112.5)	(765)	%	(773)	%
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	(104.1)		%	0.6	%	n.m.			n.m.		Adjusted EBITDA margin (local currency basis)	(75.2)		%	(10.1)	%	(6,480) bps			(6,510) bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	(103.7)		%								Adjusted EBITDA margin (USD basis)	(74.9)		%

(1) Included in Compensation and benefits expense for JLL Technologies is a reduction in carried interest expense of ~~$10.0~~$0.1 million and ~~$9.3~~$9.4 million for the three and ~~six~~nine months ended ~~June~~September 30, 2023, respectively, and a carried interest expense of ~~$9.8~~$0.6 million and ~~$16.0~~$16.6 million for the three and ~~six~~nine months ended ~~June~~September 30, 2022, related to Equity earnings of the segment.

~~The increases in~~For the third quarter and first nine months of 2023, JLL Technologies revenue and fee revenue increased over the prior-year ~~quarter were primarily driven~~periods led by growth in solutions and service offerings, largely from existing enterprise clients.

Equity losses for the quarter and first ~~half~~nine months of ~~the year~~2023 resulted from ~~current-quarter~~ valuation declines in JLL Technologies' investments due to subsequent financing rounds at decreased per-share values. ~~These~~The most significant equity losses, recognized in the second quarter of 2023, were predominantly driven by two investments for which we previously recognized significant equity earnings.

~~A notable driver of the change~~The decrease in ~~Segment~~current-quarter segment operating ~~loss is a $10.0~~expenses and segment fee-based operating expenses included an approximate $5 million reduction to incentive compensation expense, which related to true-ups based on performance achievement, and improved operating efficiencies. Further driving a reduction in expenses for the first nine months of 2023, carried interest expense ~~this quarter ($9.3~~decreased $9.4 million ~~for~~(only $0.1 million in the ~~first half of the year) associated with~~third quarter) in response to the equity losses ~~compared with $9.8 million of incremental expense in the second quarter of 2022 ($16.0 million~~described above.

Margin improvement for the ~~first half of 2022) associated with~~quarter was attributable to fee revenue growth and the ~~equity earnings.~~

~~The second-quarter margin decline was entirely driven~~expense drivers noted above, partially offset by the change in equity earnings/~~losses, net of carried interest, as fee revenue growth with recent cost reductions drove improvement in segment operating loss.~~losses.

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LaSalle


										% Change											% Change
		Three Months Ended June 30,					Change in			in Local			Three Months Ended September 30,					Change in			in Local
($ in millions)	($ in millions)	2023			2022		U.S. dollars			Currency		($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	Revenue	$	143.9		114.5		29.4	26	%	26	%	Revenue	$	110.1		124.5		(14.4)	(12)	%	(13)	%
Gross contract costs	Gross contract costs	(7.5)			(7.2)		(0.3)	4		4		Gross contract costs	(7.4)			(8.5)		1.1	(13)		(13)
Fee revenue	Fee revenue	$	136.4		107.3		29.1	27	%	28	%	Fee revenue	$	102.7		116.0		(13.3)	(11)	%	(13)	%
Advisory fees	Advisory fees	94.4			98.2		(3.8)	(4)		(3)		Advisory fees	95.3			95.4		(0.1)	—		(2)
Transaction fees and other	Transaction fees and other	6.2			8.1		(1.9)	(23)		(19)		Transaction fees and other	7.4			8.7		(1.3)	(15)		(14)
Incentive fees	Incentive fees	35.8			1.0		34.8	n.m.				Incentive fees	—			11.9		(11.9)	(100)		(105)
Compensation and benefits, excluding gross contract costs	Compensation and benefits, excluding gross contract costs	$	84.4		72.2		12.2	17	%	18	%	Compensation and benefits, excluding gross contract costs	$	63.2		78.7		(15.5)	(20)	%	(21)	%
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	17.1			14.4		2.7	19		20		Operating, administrative and other expenses, excluding gross contract costs	14.0			13.3		0.7	5		2

Depreciation and amortization	Depreciation and amortization	2.3			1.8		0.5	28		30		Depreciation and amortization	2.2			1.6		0.6	38		37
Segment fee-based operating expenses (excluding restructuring & acquisition charges)	Segment fee-based operating expenses (excluding restructuring & acquisition charges)	103.8			88.4		15.4	17		19		Segment fee-based operating expenses (excluding restructuring & acquisition charges)	79.4			93.6		(14.2)	(15)		(17)
Gross contract costs	Gross contract costs	7.5			7.2		0.3	4		4		Gross contract costs	7.4			8.5		(1.1)	(13)		(13)
Segment operating expenses	Segment operating expenses	$	111.3		95.6		15.7	16	%	17	%	Segment operating expenses	$	86.8		102.1		(15.3)	(15)	%	(17)	%
Equity (losses) earnings		$	(5.1)		7.0		(12.1)	(173)	%	(172)	%
Equity losses												Equity losses	$	(9.1)		(1.1)		(8.0)	(727)	%	(667)	%
Adjusted EBITDA	Adjusted EBITDA	$	29.7		27.8		1.9	7	%	7	%	Adjusted EBITDA	$	16.9		22.8		(5.9)	(26)	%	(28)	%
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	21.7		%	26.0	%	(420) bps			(430) bps		Adjusted EBITDA margin (local currency basis)	16.3		%	19.7	%	(320) bps			(340) bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	21.8		%								Adjusted EBITDA margin (USD basis)	16.5		%

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LaSalle (continued)


										% Change											% Change
		Six Months Ended June 30,					Change in			in Local			Nine Months Ended September 30,					Change in			in Local
($ in millions)	($ in millions)	2023			2022		U.S. dollars			Currency		($ in millions)	2023			2022		U.S. dollars			Currency
Revenue	Revenue	$	258.3		232.8		25.5	11	%	13	%	Revenue	$	368.4		357.3		11.1	3	%	4	%
Gross contract costs	Gross contract costs	(14.6)			(13.5)		(1.1)	8		8		Gross contract costs	(22.0)			(22.0)		—	—		—
Fee revenue	Fee revenue	$	243.7		219.3		24.4	11	%	14	%	Fee revenue	$	346.4		335.3		11.1	3	%	4	%
Advisory fees	Advisory fees	189.1			188.9		0.2	—		2		Advisory fees	284.4			284.3		0.1	—		1
Transaction fees and other	Transaction fees and other	15.3			25.2		(9.9)	(39)		(36)		Transaction fees and other	22.7			33.9		(11.2)	(33)		(30)
Incentive fees	Incentive fees	39.3			5.2		34.1	656		671		Incentive fees	39.3			17.1		22.2	130		130
Compensation and benefits, excluding gross contract costs	Compensation and benefits, excluding gross contract costs	$	153.3		147.0		6.3	4	%	7	%	Compensation and benefits, excluding gross contract costs	$	216.5		225.7		(9.2)	(4)	%	(3)	%
Operating, administrative and other expenses, excluding gross contract costs	Operating, administrative and other expenses, excluding gross contract costs	32.3			28.1		4.2	15		18		Operating, administrative and other expenses, excluding gross contract costs	46.3			41.4		4.9	12		13
Depreciation and amortization	Depreciation and amortization	3.6			3.2		0.4	13		14		Depreciation and amortization	5.8			4.8		1.0	21		21
Segment fee-based operating expenses	Segment fee-based operating expenses	189.2			178.3		10.9	6		9		Segment fee-based operating expenses	268.6			271.9		(3.3)	(1)		—
Gross contract costs	Gross contract costs	14.6			13.5		1.1	8		8		Gross contract costs	22.0			22.0		—	—		—
Segment operating expenses	Segment operating expenses	$	203.8		191.8		12.0	6	%	9	%	Segment operating expenses	$	290.6		293.9		(3.3)	(1)	%	—	%
Equity (losses) earnings	Equity (losses) earnings	$	(13.9)		5.1		(19.0)	(373)	%	(372)	%	Equity (losses) earnings	$	(23.0)		4.0		(27.0)	(675)	%	(680)	%
Adjusted EBITDA	Adjusted EBITDA	$	44.0		49.1		(5.1)	(10)	%	(9)	%	Adjusted EBITDA	$	60.9		71.9		(11.0)	(15)	%	(15)	%
Adjusted EBITDA margin (local currency basis)	Adjusted EBITDA margin (local currency basis)	17.9		%	22.4	%	(430) bps			(450) bps		Adjusted EBITDA margin (local currency basis)	17.4		%	21.4	%	(380) bps			(400) bps
Adjusted EBITDA margin (USD basis)	Adjusted EBITDA margin (USD basis)	18.1		%								Adjusted EBITDA margin (USD basis)	17.6		%

~~For~~Subdued transaction volumes in the market contributed to the decrease in LaSalle transaction fees for both the ~~second~~ quarter and first ~~half~~nine months as well as incentive fees for the third quarter. For the first nine months of 2023, ~~LaSalle revenue and fee revenue~~top-line growth was driven by incentive fees, ~~earned on assets managed on behalf of clients,~~ specifically in Japan and United States. ~~Specific to~~Quarter-to-date and year-to-date, advisory fee performance remained resilient despite declines in real estate valuations over the ~~quarter, the slightly lower advisory fees were the result of recent valuation declines~~trailing twelve months, impacting assets under management. ~~Advisory fees for the first six months were marginally up compared with 2022.~~

The equity losses on both a ~~quarter-to-date~~quarter and year-to-date basis were primarily attributable to net valuation declines in the co-investment portfolio. For the ~~second quarter and~~ first half of 2023, this decline was partially offset by the co-investment in a LaSalle-managed publicly-traded REIT in Japan, which had a ~~notable~~greater negative share price movement in ~~the prior-year periods.~~2022.

~~The increases in~~Current-quarter segment operating expenses and segment fee-based operating expenses ~~for~~were lower than the ~~second~~prior-year quarter ~~and~~due to the absence of expenses associated with the loss of a client mandate in the U.K., as well as lower incentive compensation expense. For the first ~~half~~nine months of 2023, ~~compared with the prior-year periods, were primarily driven~~this current-quarter decrease was largely offset by ~~higher~~ variable compensation expense associated with the ~~increased~~higher incentive ~~fees.~~fees earned in the first half of 2023.

The ~~second-quarter adjusted EBITDA~~third quarter margin ~~contraction~~decline was ~~primarily attributable to~~driven by the ~~net~~ equity losses and an absence of incentive fees, partially offset by ~~higher incentive fees.~~the expense drivers noted above.

As of ~~June~~September 30, 2023, LaSalle had ~~$78.2~~$77.7 billion of AUM, a decrease of ~~less than~~ 1% in ~~both~~ USD ~~and~~(with no change in local ~~currency~~currency) from ~~$78.5~~$78.2 billion as of ~~March 31,~~June 30, 2023. The AUM change resulted from (i) ~~$0.8~~$0.7 billion of ~~dispositions and withdrawals,~~foreign currency decreases, (ii) $0.5 billion of net valuation decreases and (iii) ~~$0.1~~$0.4 billion of ~~foreign currency increases,~~dispositions and withdrawals, partially offset by (iv) $1.1 billion of acquisitions.

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LIQUIDITY AND CAPITAL RESOURCES

We finance our operations, co-investment activity, share repurchases, capital expenditures and business acquisitions with internally generated funds, borrowings on our Facility, and through issuance of Long-term debt.

Cash Flows from Operating Activities

Operating activities used ~~$479.3~~$153.6 million of cash in the first ~~six~~nine months of 2023, compared with ~~$539.4~~$401.9 million of cash used in operating activities during the same period in 2022. The year-over-year decrease in cash used in operating activities was primarily due to (i) incremental cash inflow associated with trade receivables, (ii) lower incentive compensation and commission payments in 2023 ~~compared with 2022, (ii) incremental cash inflow associated with trade receivables~~ and (iii) ~~$98.5~~$157.3 million of lower cash taxes paid compared with last year. This is partially offset by lower cash provided by earnings, largely attributable to the change in business performance for Capital Markets and Markets Advisory.

Cash Flows from Investing Activities

We used ~~$160.7~~$220.4 million of cash for investing activities during the first ~~six~~nine months of 2023, compared with ~~$63.1~~$147.8 million used during the same period in 2022. The prior year included ~~$137.0~~$132.4 million of net capital proceeds relating to less than wholly-owned subsidiaries that did not recur in 2023. In addition, ~~there were less~~ net capital contributions to investments were lower in the first ~~half~~nine months of 2023 compared with 2022. There was no such activity in the current year.

We discuss these drivers, along with other investing activities, individually below in further detail.

Cash Flows from Financing Activities

Financing activities provided ~~$503.9~~$231.2 million of cash during the first ~~six~~nine months of 2023, compared with ~~$601.3~~$500.5 million provided during the same period in 2022. The net decrease of ~~$97.4~~$269.3 million in cash inflows from financing activities was substantially driven by a decrease in net borrowings on our Facility. This decrease in borrowings against the prior year was a product of ~~lower incentive compensation payments~~less cash used in ~~the first quarter of 2023~~operating activities as well as ~~less~~lower share repurchases in ~~the first half of~~ 2023 (refer to the Share Repurchases section below). Finally, the 2022 cash outflow relating to noncontrolling interest distributions included a $142.3 million gain by a consolidated variable interest entity in which ~~the company~~we held no equity interest that was also distributed in the ~~first half~~second quarter of 2022 (offsetting the net capital proceeds from less than wholly-owned subsidiaries noted in cash flows from investing activities).

Debt

Our $3.35 billion Facility matures on April 14, 2026 and bears a variable interest rate. AsOutstanding borrowings, including the balance of ~~June 30, 2023, we had outstanding borrowings under~~ the Facility ~~of $1,840.5 million versus $1,213.8 million as of December 31, 2022. The average outstanding borrowings under our credit facilities were $2,315.8 million~~ and $1,581.9 million (with average effective interest rates of 5.9% and 1.6%) during the three months ended June 30, 2023 and 2022, respectively, and $2,019.5 million and $1,135.0 million (with average effective interest rates of 5.7% and 1.4%) during the six months ended June 30, 2023 and 2022, respectively.

~~We had~~ Short-term borrowings ~~(including financing~~(financing lease obligations, overdrawn bank accounts and local overdraft facilities) ~~of $112.1 million and $164.2 million as of June 30, 2023 and December 31, 2022, respectively.~~ are presented below.


(in millions)	September 30, 2023		December 31, 2022
Outstanding borrowings under the Facility	$	1,600.0	$	1,225.0
Short-term borrowings	117.6		164.2

In addition to our Facility, we had the capacity to borrow up to ~~$53.8~~$52.9 million under local overdraft facilities as of ~~June~~September 30, 2023.

The following table provides additional information on our Facility and Uncommitted Facility, collectively.


	Three Months Ended September 30,					Nine Months Ended September 30,
($ in millions)	2023			2022		2023			2022
Average outstanding borrowings	$	2,011.9		1,599.8		$	2,017.0		1,295.9
Average effective interest rate	6.1		%	3.2	%	5.8		%	2.2	%

We will continue to use the Facility for working capital needs (including payment of accrued incentive compensation), co-investment activities, share repurchases, capital expenditures and acquisitions.

Refer to Note 9, Debt, in the Notes to Condensed Consolidated Financial Statements for additional information on our debt.

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Investment Activity

As of ~~June~~September 30, 2023, we had a carrying value of ~~$872.7~~$865.2 million in investments, primarily related to investments by JLL Technologies in early to mid-stage proptech companies as well as proptech funds, and LaSalle co-investments. For the first ~~half~~nine months of 2023 and 2022, funding of investments exceeded return of capital by ~~$53.5~~$65.3 million and ~~$108.3~~$123.2 million, respectively. We expect continued investments by JLL Technologies as well as strategic co-investment opportunities with our investment management clients globally as co-investment remains an important foundation to the continued growth of LaSalle's business.

See Note 6, Investments, in the Notes to Condensed Consolidated Financial Statements for additional information on our investment activity.

Capital Expenditures

Net capital additions for the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022 were ~~$88.2~~$137.7 million and ~~$86.9~~$136.0 million, respectively. Our capital expenditures in 2023 were primarily for purchased/developed software and leased office space improvements.

Investment Asset Activity of Consolidated Less Than Wholly-Owned Entities

Net capital proceeds related to consolidated VIEs in which we held no equity interest for the nine months ended September 30, 2022 were $132.4 million. The distribution of proceeds from the sale of this investment (the initial acquisition of which was largely funded from employee-investors and related third-party debt) also occurred in 2022 and is included within financing activities.

Business Acquisitions

During the ~~six~~nine months ended ~~June~~September 30, 2023, we paid ~~$35.6~~$36.4 million ~~for~~relating to business acquisitions. This included $13.6 million of payments ~~relating to~~associated with 2023 acquisitions ~~in 2023~~ and ~~$22.0~~$22.8 million for deferred business acquisition and earn-out obligations ~~related to~~for acquisitions completed in prior years, which are primarily reflected in cash flows from financing activities.

Terms for many of our past acquisitions have typically included cash paid at closing with provisions for additional deferred consideration and earn-out payments subject to certain contract requirements, including the passage of time and performance, respectively. Deferred business acquisition obligations totaled ~~$14.9~~$14.3 million as of ~~June~~September 30, 2023. These obligations represent the current discounted values of payments due to sellers of businesses for which our acquisition had been completed as of the balance sheet date and for which the only remaining condition on those payments is the passage of time. As of ~~June~~September 30, 2023, we had the potential to make earn-out payments for a maximum of ~~$105.0~~$103.8 million on 16 completed acquisitions subject to the achievement of certain performance conditions. Refer to Note 5, Business Combinations, Goodwill and Other Intangible Assets, in the Notes to the Condensed Consolidated Financial Statements for further information on Business Acquisitions.

We will continue to consider acquisitions that we believe will strengthen our market position, increase our profitability, and supplement our organic growth.

Share Repurchase and Dividend Programs

In February 2022, our Board of Directors authorized an additional $1.5 billion for the repurchase of our common stock in the open market and privately negotiated transactions. The number of shares repurchased and cash paid for repurchases is noted

in the following table.


		Three Months Ended June 30,			Six Months Ended June 30,				Three Months Ended September 30,			Nine Months Ended September 30,
($ in millions)	($ in millions)	2023		2022	2023		2022	($ in millions)	2023		2022	2023		2022
Total number of shares repurchased (in 000's)	Total number of shares repurchased (in 000's)	139.3		1,397.9	139.3		2,013.2	Total number of shares repurchased (in 000's)	123.2		909.2	262.5		2,922.4
Total paid for shares repurchased	Total paid for shares repurchased	$	20.0	297.7	$	20.0	447.7	Total paid for shares repurchased	$	20.1	153.5	$	40.1	601.2

As of ~~June~~September 30, 2023, ~~$1,135.6~~$1,115.5 million remained authorized for repurchases under our share repurchase program.

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Repatriation of Foreign Earnings

Based on our historical experience and future business plans, we do not expect to repatriate our foreign-sourced earnings to the United States. We believe our policy of permanently investing earnings of foreign subsidiaries does not significantly impact our liquidity. As of ~~June~~September 30, 2023, and December 31, 2022, we had total cash and cash equivalents of ~~$402.5~~$389.5 million and $519.3 million, respectively, of which approximately ~~$299.6~~$301.7 million and $400.8 million, respectively, was held by foreign subsidiaries.

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Restricted Net Assets

We face regulatory 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 aggregated to approximately 4% of our total assets as of both ~~June~~September 30, 2023, and December 31, 2022.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report, including this Management's Discussion and Analysis of Financial Condition and Results of Operations, contains “forward-looking statements” within the meaning of the federal securities laws. All such statements are qualified by this cautionary note, which is provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may also be included in our other public filings, press releases, our website, and oral and written presentations by management.

Statements in the future tense, and all statements accompanied by terms such as “believe,” “will,” “may,” “could,” “project,” “expect,” “estimate,” “assume,” “intend,” “anticipate,” “target,” “plan” and variations thereof and similar terms, are intended to be forward-looking statements. Such statements do not relate strictly to historical or current facts as they relate to our intent, belief and current expectations about our strategic direction, prospects and future results, and give our current expectations or forecasts of future events. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

MARKET AND OTHER RISK FACTORS

Interest Rates

We assess interest rate sensitivity to estimate the potential effect of rising short-term interest rates on our variable-rate debt. If short-term interest rates were 50 basis points higher during 2023 on our variable-rate debt, our results would reflect an incremental ~~$5.0~~$7.6 million of interest expense for the ~~six~~nine months ended ~~June~~September 30, 2023.

Foreign Exchange

The following outlines the significant functional currencies of our revenue, highlighting where exposure to movements in foreign exchange impact our operations in international markets.


		Six Months Ended June 30,						Nine Months Ended September 30,
			2023		2022				2023		2022
British pound	British pound		8	%	8	%	British pound		8	%	8	%
Euro	Euro		7		7		Euro		7		7
Australian dollar	Australian dollar		5		6		Australian dollar		5		6
Other(1)	Other(1)		21		20		Other(1)		21		19
Revenue exposed to foreign exchange rates	Revenue exposed to foreign exchange rates		41	%	41	%	Revenue exposed to foreign exchange rates		41	%	40	%
United States dollar	United States dollar		59		59		United States dollar		59		60
Total revenue	Total revenue		100	%	100	%	Total revenue		100	%	100	%

(1) No other functional currency exceeds 5% of total revenue.

To show the impact foreign currencies have on our results of operations, we present the change in local currency for revenue and operating expenses on a consolidated basis and by operating segment in Management's Discussion and Analysis of Financial Condition and Results of Operations included herein. For additional detail of the impact of foreign exchange rates on our results of operations, see Management's Discussion and Analysis of Financial Condition and Results of Operations included herein.

We enter into forward foreign currency exchange contracts to manage currency risks associated with intercompany lending and cash management practices. See Note 8, Fair Value Measurements, in the Notes to the Condensed Consolidated Financial Statements for further discussion of our forward contracts.

Item 4. Controls and Procedures

The Company has established disclosure controls and procedures to ensure material information relating to the Company, including its consolidated subsidiaries, is made known to the officers who certify the Company's financial reports and to the other members of senior management and the Board of Directors.

Under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded our disclosure controls and procedures were effective as of the end of the period covered by this report. There were no changes in the Company's internal control over financial reporting during the quarter ended ~~June~~September 30, 2023, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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Part II. Other Information

Item 1. Legal Proceedings

We are a defendant or plaintiff in various litigation matters arising in the ordinary course of business, some of which involve claims for damages that are substantial in amount. Many of these litigation matters are covered by insurance, including insurance provided through a captive insurance company, although they may nevertheless be subject to large deductibles and the amounts being claimed may exceed the available insurance. Although we cannot determine the ultimate liability for these matters based upon information currently available, we believe the ultimate resolution of such claims and litigation will not have a material adverse effect on our financial position, results of operations or liquidity.

Item 1A. Risk Factors

There have been no material changes to our risk factors as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information about our purchases of equity securities that are registered by us pursuant to Section 12 of the Exchange Act during the quarter ended ~~June~~September 30, 2023.

Period Total number of shares purchased Weighted average price paid per share Total number of shares purchased as part of publicly announced plan Approximate dollar value of shares that may yet be purchased under the plan (in millions)
April 1, 2023 - April 30, 2023 — $ — —
May 1, 2023 - May 31, 2023 72,332 $ 138.25 72,332
June 1, 2023 - June 30, 2023 66,963 $ 149.34 66,963 $ 1,135.6
Total 139,295 139,295


Period	Total number of shares purchased	Weighted average price paid per share			Total number of shares purchased as part of publicly announced plan	Approximate dollar value of shares that may yet be purchased under the plan (in millions)
July 1, 2023 - July 31, 2023	27,035		$	168.80	27,035
August 1, 2023 - August 31, 2023	56,152		$	168.05	56,152
September 1, 2023 - September 30, 2023	39,973		$	153.06	39,973		$	1,115.5
Total	123,160				123,160

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Item 6. Exhibits


Exhibit Number			Description
10.1*			Second Amended and Restated 2019 Stock Award and Incentive Plan effective as of May 25, 2023 (as approved by the Shareholders of Jones Lang LaSalle Incorporated on May 25, 2023 and incorporated by reference to Annex C to the Proxy Statement included in Schedule 14A filed on April 14, 2023 (File No. 001-13145)

10.2*			~~Letter Agreement dated June 27, 2023 between Jones Lang LaSalle Inc. and Greg O’Brien~~

31.1*			Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*			Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32*			Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH			Inline XBRL Taxonomy Extension Schema Document

101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document

104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*Filed herewith

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Signature

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the ~~3rd~~2nd day of ~~August,~~November, 2023.


JONES LANG LASALLE INCORPORATED

By:						/s/ Karen Brennan
						Karen Brennan
						Chief Financial Officer
						(Authorized Officer and Principal Financial Officer)




Part I	Financial Information

Item 1.	Condensed Consolidated Financial Statements:	3

	Balance Sheets as of ~~June~~September 3 0 ,30, 2023 and December 31, 2022	3

	Statements of Comprehensive Income for the Three and ~~and Six~~Nine Months Ended ~~June~~September 3 0 ,30, 2023 and 2022	4

	Statements of Changes in Equity for the Three and ~~and Six~~Nine Months Ended ~~June~~September 3 0 ,30, 2023 and 2022	5

	Statements of Cash Flows for the ~~Six~~Nine Months Ended ~~June~~September 3 0 ,30, 2023 and 2022	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	50

Item 4.	Controls and Procedures	50

Part II	Other Information

Item 1.	Legal Proceedings	51

Item 1A.	Risk Factors	51





Item 6.	Exhibits	52

Signature		53