Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 18, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-32205 | ||
Entity Registrant Name | CBRE GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-3391143 | ||
Entity Address, Address Line One | 2100 McKinney Avenue | ||
Entity Address, Address Line Two | Suite 1250 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75201 | ||
City Area Code | 214 | ||
Local Phone Number | 979-6100 | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value per share | ||
Trading Symbol | “CBRE” | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14.6 | ||
Entity Common Stock, Shares Outstanding | 335,597,172 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the registrant’s 2021 Annual Meeting of Stockholders to be held May 20, 2021 are incorporated by reference in Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001138118 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 1,896,188 | $ 971,781 |
Restricted cash | 143,059 | 121,964 |
Receivables, less allowance for doubtful accounts of $95,533 and $72,725 at December 31, 2020 and 2019, respectively | 4,394,954 | 4,466,674 |
Warehouse receivables | 1,411,170 | 993,058 |
Contract assets | 318,191 | 328,012 |
Prepaid expenses | 294,992 | 282,741 |
Income taxes receivable | 93,756 | 93,915 |
Other current assets | 293,321 | 276,319 |
Total Current Assets | 8,845,631 | 7,534,464 |
Property and equipment, net | 815,009 | 836,206 |
Goodwill | 3,821,609 | 3,753,493 |
Other intangible assets, net of accumulated amortization of $1,556,537 and $1,358,528 at December 31, 2020 and 2019, respectively | 1,367,913 | 1,379,546 |
Operating lease assets | 1,020,352 | 997,966 |
Investments in unconsolidated subsidiaries (with $116,314 and $124,262 at fair value at December 31, 2020 and 2019, respectively) | 452,365 | 426,711 |
Non-current contract assets | 153,636 | 201,760 |
Real estate under development | 277,630 | 185,508 |
Non-current income taxes receivable | 43,555 | 139,136 |
Deferred tax assets, net | 91,529 | 73,864 |
Investments held in trust - special purpose acquisition company | 402,501 | 0 |
Other assets, net | 747,413 | 668,542 |
Total Assets | 18,039,143 | 16,197,196 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 2,692,939 | 2,436,084 |
Compensation and employee benefits payable | 1,287,383 | 1,324,990 |
Accrued bonus and profit sharing | 1,183,786 | 1,261,974 |
Operating lease liabilities | 208,526 | 168,663 |
Contract liabilities | 162,045 | 108,671 |
Income taxes payable | 57,892 | 30,207 |
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,383,964 | 977,175 |
Other short-term borrowings | 5,330 | 4,534 |
Current maturities of long-term debt | 1,514 | 1,814 |
Other current liabilities | 160,604 | 122,339 |
Total Current Liabilities | 7,143,983 | 6,436,451 |
Long-term debt, net of current maturities | 1,380,202 | 1,761,245 |
Non-current operating lease liabilities | 1,116,795 | 1,057,758 |
Non-current income taxes payable | 54,761 | 93,647 |
Non-current tax liabilities | 87,954 | 85,966 |
Deferred tax liabilities, net | 124,485 | 34,593 |
Other liabilities | 625,303 | 454,424 |
Total Liabilities | 10,533,483 | 9,924,084 |
Commitments and contingencies | 0 | 0 |
Non-controlling interest subject to possible redemption - special purpose acquisition company | 385,573 | 0 |
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock; $0.01 par value; 525,000,000 shares authorized; 335,561,345 and 334,752,283 shares issued and outstanding at December 31, 2020 and 2019, respectively | 3,356 | 3,348 |
Additional paid-in capital | 1,074,639 | 1,115,944 |
Accumulated earnings | 6,530,057 | 5,793,149 |
Accumulated other comprehensive loss | (529,726) | (679,748) |
Total CBRE Group, Inc. Stockholders’ Equity | 7,078,326 | 6,232,693 |
Non-controlling interests | 41,761 | 40,419 |
Total Equity | 7,120,087 | 6,273,112 |
Total Liabilities and Equity | $ 18,039,143 | $ 16,197,196 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 95,533 | $ 72,725 |
Other intangible assets, accumulated amortization | 1,556,537 | 1,358,528 |
Investments in unconsolidated entities, fair value | $ 116,314 | $ 124,262 |
Class A common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Class A common stock issued (in shares) | 335,561,345 | 334,752,283 |
Class A common stock outstanding (in shares) | 335,561,345 | 334,752,283 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 23,826,195 | $ 23,894,091 | $ 21,340,088 |
Costs and expenses: | |||
Cost of revenue | 19,047,620 | 18,689,013 | 16,449,212 |
Operating, administrative and other | 3,306,205 | 3,436,009 | 3,365,773 |
Depreciation and amortization | 501,728 | 439,224 | 451,988 |
Asset impairments | 88,676 | 89,787 | 0 |
Total costs and expenses | 22,944,229 | 22,654,033 | 20,266,973 |
Gain on disposition of real estate | 87,793 | 19,817 | 14,874 |
Operating income | 969,759 | 1,259,875 | 1,087,989 |
Equity income from unconsolidated subsidiaries | 126,161 | 160,925 | 324,664 |
Other income | 17,394 | 28,907 | 93,020 |
Interest expense, net of interest income | 67,753 | 85,754 | 98,685 |
Write-off of financing costs on extinguished debt | 75,592 | 2,608 | 27,982 |
Income before provision for income taxes | 969,969 | 1,361,345 | 1,379,006 |
Provision for income taxes | 214,101 | 69,895 | 313,058 |
Net income | 755,868 | 1,291,450 | 1,065,948 |
Less: Net income attributable to non-controlling interests | 3,879 | 9,093 | 2,729 |
Net income attributable to CBRE Group, Inc. | $ 751,989 | $ 1,282,357 | $ 1,063,219 |
Basic income per share: | |||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 2.24 | $ 3.82 | $ 3.13 |
Weighted average shares outstanding for basic income per share (in shares) | 335,196,296 | 335,795,654 | 339,321,056 |
Diluted income per share: | |||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 2.22 | $ 3.77 | $ 3.10 |
Weighted average shares outstanding for diluted income per share (in shares) | 338,392,210 | 340,522,871 | 343,122,741 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 755,868 | $ 1,291,450 | $ 1,065,948 |
Other comprehensive income (loss): | |||
Foreign currency translation gain (loss) | 124,260 | (14,092) | (161,384) |
Adoption of Accounting Standards Update 2016-01, net of $2,141 income tax benefit for the year ended December 31, 2018 | 0 | 0 | (3,964) |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of $156, $471 and $876 income tax expense for the years ended December 31, 2020, 2019 and 2018, respectively | 426 | 1,320 | 2,439 |
Unrealized gains on interest rate swaps, net of $254 income tax expense for the year ended December 31, 2018 | 0 | 0 | 708 |
Unrealized holding gains (losses) on available for sale debt securities, net of $382 and $559 income tax expense and $349 income tax benefit for the years ended December 31, 2020, 2019 and 2018, respectively | 1,436 | 2,101 | (971) |
Pension liability adjustments, net of $1,663, $194 and $269 income tax expense for the years ended December 31, 2020, 2019 and 2018, respectively | 7,343 | 944 | 1,315 |
Legal entity restructuring, net of $17,694 income tax expense for the year ended December 31, 2019 | 0 | 63,149 | 0 |
Other, net of $3,068 income tax expense and $3,795 and $3,550 income tax benefit for the years ended December 31, 2020, 2019 and 2018, respectively | 16,772 | (14,946) | (5,070) |
Total other comprehensive income (loss) | 150,237 | 38,476 | (166,927) |
Comprehensive income | 906,105 | 1,329,926 | 899,021 |
Less: Comprehensive income attributable to non-controlling interests | 4,094 | 9,048 | 1,657 |
Comprehensive income attributable to CBRE Group, Inc. | $ 902,011 | $ 1,320,878 | $ 897,364 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201601Member | ||
Adoption of Accounting Standards Update 2016-01, income tax (benefit) | $ 2,141 | ||
Amounts reclassified from accumulated other comprehensive loss to interest expense, income tax expense | $ 156 | $ 471 | 876 |
Unrealized gains on interest rate swaps, income tax expense (benefit) | 254 | ||
Unrealized holding gains (losses) on available for sale debt securities, income tax expense (benefit) | 382 | 559 | (349) |
Pension liability adjustments, income tax expense (benefit) | 1,663 | 194 | 269 |
Legal entity restructuring, income tax expense (benefit) | 17,694 | ||
Other, income tax expense (benefit) | $ 3,068 | $ (3,795) | $ (3,550) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 755,868 | $ 1,291,450 | $ 1,065,948 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 501,728 | 439,224 | 451,988 |
Amortization and write-off of financing costs on extinguished debt | 82,705 | 8,662 | 35,175 |
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets | (297,980) | (246,690) | (229,376) |
Asset impairments | 88,676 | 89,787 | 0 |
Gain associated with remeasuring our investment in a joint venture entity to fair value at the date we acquired the remaining interest | 0 | 0 | (100,420) |
Net realized and unrealized (gains) losses, primarily from investments | (17,394) | (28,907) | 7,400 |
Provision for doubtful accounts | 44,366 | 20,373 | 19,760 |
Net compensation expense for equity awards | 60,391 | 127,738 | 128,171 |
Equity income from unconsolidated subsidiaries | (126,161) | (160,925) | (324,664) |
Distribution of earnings from unconsolidated subsidiaries | 155,975 | 199,011 | 336,925 |
Proceeds from sale of mortgage loans | 20,937,521 | 19,805,060 | 20,230,676 |
Origination of mortgage loans | (21,268,114) | (19,389,979) | (20,591,602) |
Increase (decrease) in warehouse lines of credit | 406,789 | (351,586) | 417,995 |
Tenant concessions received | 48,030 | 21,249 | 38,400 |
Purchase of equity securities | (11,113) | (83,001) | (99,789) |
Proceeds from sale of equity securities | 13,741 | 46,949 | 75,120 |
(Increase) decrease in real estate under development | (105,619) | 31,420 | (4,586) |
Decrease (increase) in receivables, prepaid expenses and other assets (including contract and lease assets) | 371,009 | (821,134) | (773,361) |
Increase in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) | 105,491 | 306,677 | 273,782 |
(Decrease) increase in compensation and employee benefits payable and accrued bonus and profit sharing | (100,142) | 244,895 | 270,371 |
Decrease (increase) in net income taxes receivable/payable | 173,648 | (274,436) | (47,074) |
Other operating activities, net | 11,364 | (52,457) | (49,590) |
Net cash provided by operating activities | 1,830,779 | 1,223,380 | 1,131,249 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (266,575) | (293,514) | (227,803) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (27,848) | (355,926) | (322,573) |
Contributions to unconsolidated subsidiaries | (146,409) | (105,947) | (62,802) |
Distributions from unconsolidated subsidiaries | 88,731 | 33,289 | 61,709 |
Other investing activities, net | 10,516 | 1,074 | (9,215) |
Net cash used in investing activities | (341,585) | (721,024) | (560,684) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from senior term loans | 0 | 300,000 | 1,002,745 |
Repayment of senior term loans | 0 | (300,000) | (450,000) |
Proceeds from revolving credit facility | 835,671 | 3,609,000 | 3,258,000 |
Repayment of revolving credit facility | (835,671) | (3,609,000) | (3,258,000) |
Establishment of trust account for special purpose acquisition company | (402,500) | 0 | 0 |
Sale of non-controlling interest - special purpose acquisition company | 393,661 | 0 | 0 |
Proceeds from notes payable on real estate | 90,552 | 6,694 | 7,599 |
Repayments of notes payable on real estate | (24,704) | 0 | (19,058) |
Repurchase of common stock | (50,028) | (145,137) | (161,034) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (44,700) | (42,147) | (18,660) |
Units repurchased for payment of taxes on equity awards | (43,835) | (18,426) | (29,386) |
Non-controlling interest contributions | 2,173 | 46,612 | 25,355 |
Non-controlling interest distributions | (4,330) | (3,957) | (13,413) |
Other financing activities, net | (41,893) | (4,901) | (4,453) |
Net cash used in financing activities | (625,256) | (271,949) | (506,600) |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | 81,564 | (606) | (24,840) |
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 945,502 | 229,801 | 39,125 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF YEAR | 1,093,745 | 863,944 | 824,819 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF YEAR | 2,039,247 | 1,093,745 | 863,944 |
Cash paid during the year for: | |||
Interest | 67,463 | 86,666 | 104,165 |
Income tax payments, net | 51,681 | 365,065 | 375,849 |
Telford Homes | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of debt assumed in acquisition | 0 | (110,687) | 0 |
FacilitySource | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of debt assumed in acquisition | 0 | 0 | (26,295) |
5.25% Senior Notes | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of senior notes (including premium) | (499,652) | 0 | 0 |
5.00% Senior Notes | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of senior notes (including premium) | $ 0 | $ 0 | $ (820,000) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2019 |
5.25% Senior Notes | |
Interest rate | 5.25% |
5.00% Senior Notes | |
Interest rate | 5.00% |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A common stock | Additional paid-in capital | Accumulated earnings | Accumulated earningsCumulative Effect, Period of Adoption, Adjustment | Minimum pension liability | Foreign currency translation and other | Foreign currency translation and otherCumulative Effect, Period of Adoption, Adjustment | Non- controlling interests |
Beginning balance (in shares) at Dec. 31, 2017 | 339,459,138 | |||||||||
Beginning Balance at Dec. 31, 2017 | $ 4,174,614 | $ 0 | $ 3,395 | $ 1,220,508 | $ 3,443,007 | $ 3,964 | $ (152,969) | $ (399,445) | $ (3,964) | $ 60,118 |
Net income | $ 1,065,948 | 1,063,219 | 2,729 | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201601Member | |||||||||
Pension liability adjustments, net of tax | $ 1,315 | 1,315 | ||||||||
Restricted stock awards vesting (in shares) | 1,424,462 | |||||||||
Restricted stock awards vesting | $ 14 | (14) | ||||||||
Compensation expense for equity awards | 128,171 | 128,171 | ||||||||
Reclassification of stock incentive plan award from an equity award to a liability award | (9,074) | (9,074) | ||||||||
Units repurchased for payment of taxes on equity awards | (29,386) | (29,386) | ||||||||
Repurchase of common stock (in shares) | (3,980,656) | |||||||||
Repurchase of common stock | (161,034) | $ (40) | (160,994) | |||||||
Foreign currency translation gain (loss) | (161,384) | (160,312) | (1,072) | |||||||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 2,439 | 2,439 | ||||||||
Unrealized gains on interest rate swaps, net of tax | 708 | 708 | ||||||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (971) | (971) | ||||||||
Contributions from non-controlling interests | 25,355 | 25,355 | ||||||||
Distributions to non-controlling interests | (13,413) | (13,413) | ||||||||
Legal entity restructuring, net | 0 | |||||||||
Other (in shares) | 9,839 | |||||||||
Other | (13,386) | $ 0 | (198) | (5,506) | 3,747 | (8,817) | (2,612) | |||
Ending balance (in shares) at Dec. 31, 2018 | 336,912,783 | |||||||||
Ending balance at Dec. 31, 2018 | 5,009,902 | $ 3,369 | 1,149,013 | 4,504,684 | (147,907) | (570,362) | 71,105 | |||
Net income | 1,291,450 | 1,282,357 | 9,093 | |||||||
Pension liability adjustments, net of tax | 944 | 944 | ||||||||
Restricted stock awards vesting (in shares) | 920,407 | |||||||||
Restricted stock awards vesting | $ 9 | (9) | ||||||||
Compensation expense for equity awards | 127,738 | 127,738 | ||||||||
Units repurchased for payment of taxes on equity awards | (18,426) | (18,426) | ||||||||
Repurchase of common stock (in shares) | (3,080,907) | |||||||||
Repurchase of common stock | (145,137) | $ (31) | (145,106) | |||||||
Foreign currency translation gain (loss) | (14,092) | (14,047) | (45) | |||||||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 1,320 | 1,320 | ||||||||
Unrealized gains on interest rate swaps, net of tax | 0 | |||||||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | 2,101 | 2,101 | ||||||||
Contributions from non-controlling interests | 46,612 | 0 | 46,612 | |||||||
Distributions to non-controlling interests | (3,957) | (3,957) | ||||||||
Deconsolidation of investments | (76,349) | (76,349) | ||||||||
Legal entity restructuring, net | 63,149 | 63,149 | ||||||||
Other (in shares) | 0 | |||||||||
Other | (12,143) | $ 1 | 2,734 | 6,108 | 0 | (14,946) | (6,040) | |||
Ending balance (in shares) at Dec. 31, 2019 | 334,752,283 | |||||||||
Ending balance at Dec. 31, 2019 | 6,273,112 | $ 3,348 | 1,115,944 | 5,793,149 | (146,963) | (532,785) | 40,419 | |||
Net income | 755,868 | 751,989 | 3,879 | |||||||
Pension liability adjustments, net of tax | 7,343 | 7,343 | ||||||||
Restricted stock awards vesting (in shares) | 1,859,146 | |||||||||
Restricted stock awards vesting | $ 19 | (19) | ||||||||
Compensation expense for equity awards | 60,391 | 60,391 | ||||||||
Units repurchased for payment of taxes on equity awards | (43,835) | (43,835) | ||||||||
Repurchase of common stock (in shares) | (1,050,084) | |||||||||
Repurchase of common stock | (50,028) | $ (11) | (50,017) | |||||||
Foreign currency translation gain (loss) | 124,260 | 124,045 | 215 | |||||||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 426 | 426 | ||||||||
Unrealized gains on interest rate swaps, net of tax | 0 | |||||||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | 1,436 | 1,436 | ||||||||
Contributions from non-controlling interests | 2,173 | 2,173 | ||||||||
Distributions to non-controlling interests | (4,330) | (4,330) | ||||||||
Legal entity restructuring, net | 0 | |||||||||
Other | (6,729) | $ 0 | (7,825) | (15,081) | 16,772 | (595) | ||||
Ending balance (in shares) at Dec. 31, 2020 | 335,561,345 | |||||||||
Ending balance at Dec. 31, 2020 | $ 7,120,087 | $ 3,356 | $ 1,074,639 | $ 6,530,057 | $ (139,620) | $ (390,106) | $ 41,761 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations CBRE Group, Inc., a Delaware corporation (which may be referred to in these financial statements as “the company,” “we,” “us” and “our”), was incorporated on February 20, 2001. We are the world’s largest commercial real estate services and investment firm, based on 2020 revenue, with leading global market positions in our leasing, property sales, occupier outsourcing and valuation businesses. Our business is focused on providing services to real estate investors and occupiers. For investors, we provide capital markets (property sales, mortgage origination, sales and servicing), property leasing, investment management, property management, valuation and development services, among others. For occupiers, we provide facilities management, project management, transaction (both property sales and leasing) and consulting services, among others. We generate revenue from both management fees (large multi-year portfolio and per-project contracts) and commissions on transactions. As of December 31, 2020, the company has more than 100,000 employees (excluding affiliates) serving clients in more than 100 countries providing services under the following brand names: “CBRE” (real estate advisory and outsourcing services); “CBRE Global Investors” (investment management); “Trammell Crow Company” (U.S. development); “Telford Homes” (U.K. development) and “Hana” (flexible-space solutions). In 2020, CBRE sponsored a special purpose acquisition company (SPAC), CBRE Acquisition Holdings, Inc. (CBRE Acquisition Holdings), which has the sole purpose of acquiring a privately held company with significant growth potential and to create value by supporting the company in the public markets. The company that it acquires will operate in an industry that will benefit from the experience, expertise and operating skills of CBRE. CBRE Acquisition Holdings trades on the New York Stock Exchange under the symbols “CBAH,” “CBAH.U,” and “CBAH.W.” Considerations Related to the Covid-19 Pandemic From 2010 to early 2020, commercial real estate markets had generally been characterized by increased demand for space, falling vacancies, higher rents and strong capital flows, leading to solid property sales and leasing activity. This healthy backdrop changed abruptly in the first quarter of 2020 with the emergence of the novel coronavirus (Covid-19) and resultant sharp contraction of economic activity across much of the world. There has been a significant impact on commercial real estate markets, as many property owners and occupiers have put transactions on hold and withdrawn existing mandates, sharply reducing sales and leasing volumes. We expect to see the highly challenging operating environment continue, as Covid-19 caseloads remain elevated across our major markets, business travel and face-to-face business dealings are limited and the overwhelming majority of workers remain out of their offices. The recovery of real estate markets around the world remain uncertain as of the date of this report. The effects of Covid-19 adversely impacted our financial position, results of operations, and cash flows for fiscal year 2020. The consolidated financial statements and related notes presented herein reflect our current estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of sales and expenses during the reporting periods presented. See Note 7 (Fair Value Measurements), Note 9 (Goodwill and Other Intangible Assets) and Note 13 (Commitments and Contingencies ) for further discussion of Covid-19 considerations. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries, which are comprised of variable interest entities in which we are the primary beneficiary and voting interest entities, in which we determined we have a controlling financial interest, under the “ Consolidations ” Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) (Topic 810). The permanent and redeemable equity attributable to non-controlling interests in subsidiaries is shown separately in the accompanying consolidated balance sheets. All significant intercompany accounts and transactions have been eliminated in consolidation. Variable Interest Entities (VIEs) We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. Our determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in the VIE. Determining which reporting entity, if any, has a controlling financial interest in a VIE is primarily a qualitative approach focused on identifying which reporting entity has both: (i) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to sell or liquidate the entity. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion continually. We consolidate any VIE of which we are the primary beneficiary and disclose significant VIEs of which we are not the primary beneficiary, if any, as well as disclose our maximum exposure to loss related to VIEs that are not consolidated (see Note 6). Voting Interest Entities (VOEs) For VOEs, we consolidate the entity if we have a controlling financial interest. We have a controlling financial interest in a VOE if: (i) for legal entities other than limited partnerships, we own a majority voting interest in the VOE or, for limited partnerships and similar entities, we own a majority of the entity’s kick-out rights through voting limited partnership interests; and (ii) non-controlling shareholders or partners do not hold substantive participating rights and no other conditions exist that would indicate that we do not control the entity. Marketable Securities and Other Investments Debt securities are classified as held to maturity when we have the positive intent and ability to hold the securities to maturity. Marketable debt securities not classified as held to maturity are classified as available for sale. Available for sale debt securities are carried at their fair value and any difference between cost and fair value is recorded as an unrealized gain or loss, net of income taxes, and is reported as accumulated other comprehensive income (loss) in the consolidated statements of equity. Premiums and discounts are recognized in interest using the effective interest method. Realized gains and losses and declines in value resulting from credit losses on available for sale debt securities have not been significant. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available for sale are included in interest income. Our investments in unconsolidated subsidiaries in which we have the ability to exercise significant influence over operating and financial policies, but do not control, or entities which are VIEs in which we are not the primary beneficiary are accounted for under the equity method in accordance with the “ Instruments - Equity Method and Joint Ventures” topic of the FASB ASC (Topic 323). We eliminate transactions with such equity method subsidiaries to the extent of our ownership in such subsidiaries. Accordingly, our share of the earnings from these equity-method basis companies is included in consolidated net income. We have elected to account for certain eligible investments at fair value in accordance with the “Financial Instruments” topic of the FASB ASC (Topic 825). For a portion of our investments in unconsolidated subsidiaries reported at fair value, we estimate fair value using the net asset value (NAV) per share (or its equivalent) our investees provide. These investments are considered investment companies, or are the equivalent of investment companies, as they carry all investments at fair value, with unrealized gains and losses resulting from changes in fair value reflected in earnings. Accordingly, we effectively carry our investments at an amount that is equivalent to our proportionate share of the net assets of each investment that would be allocated to us if each investment was liquidated at the net asset value as of the measurement date. All equity investments that do not result in consolidation and are not accounted for under the equity method are measured at fair value with changes therein reflected in net income. Equity instruments that do not have readily determinable fair values and do not qualify for using the net asset value per share practical expedient in the “Fair Value Measurements” topic of the FASB ASC (Topic 820) are measured at cost, less any impairment. Impairment Evaluation Impairment losses on investments, other than available for sale debt securities and investments otherwise measured at fair value, are recognized upon evidence of other-than-temporary losses of value. When testing for impairment on investments that are not actively traded on a public market, we generally use a discounted cash flow approach to estimate the fair value of our investments and/or look to comparable activities in the marketplace. Management’s judgment is required in developing the assumptions for the discounted cash flow approach. These assumptions include net asset values, internal rates of return, discount and capitalization rates, interest rates and financing terms, rental rates, timing of leasing activity, estimates of lease terms and related concessions, etc. When determining if impairment is other-than-temporary, we also look to the length of time and the extent to which fair value has been less than cost as well as the financial condition and near-term prospects of each investment. Based on our review, we did not record any significant other-than-temporary impairment losses during the years ended December 31, 2020, 2019 and 2018. Use of Estimates Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP), which require management to make estimates and assumptions about future events, including the impact Covid-19 may have on our business. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported and reported amounts of revenue and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash and Cash Equivalents Cash and cash equivalents generally consist of cash and highly liquid investments with an original maturity of three months or less. Included in the accompanying consolidated balance sheets as of December 31, 2020 and 2019 is cash and cash equivalents of $102.9 million and $70.5 million, respectively, from consolidated funds and other entities, which are not available for general corporate use. We also manage certain cash and cash equivalents as an agent for our investment and property and facilities management clients. These amounts are not included in the accompanying consolidated balance sheets (see Fiduciary Funds discussion below). Restricted Cash Included in the accompanying consolidated balance sheets as of December 31, 2020 and 2019 is restricted cash of $143.1 million and $122.0 million, respectively. The balances primarily include restricted cash set aside to cover funding obligations as required by contracts executed by us in the ordinary course of business. Fiduciary Funds The accompanying consolidated balance sheets do not include the net assets of escrow, agency and fiduciary funds, which are held by us on behalf of clients and which amounted to $8.1 billion and $6.1 billion at December 31, 2020 and 2019, respectively. Concentration of Credit Risk Financial instruments that potentially subject us to credit risk consist principally of trade receivables and interest-bearing investments. Users of real estate services account for a substantial portion of trade receivables and collateral is generally not required. The risk associated with this concentration is limited due to the large number of users and their geographic dispersion. We place substantially all of our interest-bearing investments with several major financial institutions to limit the amount of credit exposure with any one financial institution. Property and Equipment Property and equipment, which includes leasehold improvements, is stated at cost, net of accumulated depreciation and impairment. Depreciation and amortization of property and equipment is computed primarily using the straight-line method over estimated useful lives ranging up to 10 years. Leasehold improvements are amortized over the term of their associated leases, excluding options to renew, since such leases generally do not carry prohibitive penalties for non-renewal. We capitalize expenditures that significantly increase the life of our assets and expense the costs of maintenance and repairs. We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If this review indicates that such assets are considered to be impaired, the impairment is recognized in the period the changes occur and represents the amount by which the carrying value exceeds the fair value of the asset. Certain costs related to the development or purchase of internal-use software are capitalized. Internal-use software costs that are incurred in the preliminary project stage are expensed as incurred. Significant direct consulting costs and certain payroll and related costs, which are incurred during the development stage of a project are generally capitalized and amortized over a three-year period (except for enterprise software development platforms, which range from three to seven years) when placed into production. Real Estate Classification and Impairment Evaluation We classify real estate in accordance with the criteria of the “ Property, Plant and Equipment ” Topic of the FASB ASC (Topic 360) as follows: (i) real estate held for sale, which includes completed assets or land for sale in its present condition that meet all of Topic 360’s “held for sale” criteria; (ii) real estate under development (current), which includes real estate that we are in the process of developing that is expected to be completed and disposed of within one year of the balance sheet date; (iii) real estate under development (non-current), which includes real estate that we are in the process of developing that is expected to be completed and disposed of more than one year from the balance sheet date; or (iv) real estate held for investment, which consists of land on which development activities have not yet commenced and completed assets or land held for disposition that do not meet the “held for sale” criteria. Any asset reclassified from real estate held for sale to real estate under development (current or non-current) or real estate held for investment is recorded individually at the lower of its fair value at the date of the reclassification or its carrying amount before it was classified as “held for sale,” adjusted (in the case of real estate held for investment) for any depreciation that would have been recognized had the asset been continuously classified as real estate held for investment. Real estate held for sale is recorded at the lower of cost or fair value less cost to sell. If an asset’s fair value less cost to sell, based on discounted future cash flows, management estimates or market comparisons, is less than its carrying amount, an allowance is recorded against the asset. Real estate under development and real estate held for investment are carried at cost less depreciation and impairment, as applicable. Buildings and improvements included in real estate held for investment are depreciated using the straight-line method over estimated useful lives, generally up to 39 years. Tenant improvements included in real estate held for investment are amortized using the straight-line method over the shorter of their estimated useful lives or terms of the respective leases. Land improvements included in real estate held for investment are depreciated over their estimated useful lives, up to 15 years. Real estate under development and real estate held for investment are evaluated for impairment and losses are recorded when undiscounted cash flows estimated to be generated by an asset are less than the asset’s carrying amount. The amount of the impairment loss, if any, is calculated as the excess of the asset’s carrying value over its fair value, which is determined using a discounted cash flow analysis, management estimates or market comparisons. A summary of our real estate assets is as follows (dollars in thousands): December 31, 2020 2019 Real estate under development, current (included in other current assets) $ 55,072 $ 14,757 Real estate and other assets held for sale (included in other current assets) 3,710 5,066 Real estate under development 277,630 185,508 Real estate held for investment (included in other assets, net) 3,795 8,101 Total real estate $ 340,207 $ 213,432 Cost Capitalization and Allocation When acquiring, developing and constructing real estate assets, we capitalize recoverable costs. Capitalization begins when the activities related to development have begun and ceases when activities are substantially complete and the asset is available for occupancy. Recoverable costs capitalized include pursuit costs, or pre-acquisition/pre-construction costs, taxes and insurance, interest, development and construction costs and costs of incidental operations. We do not capitalize any internal costs when acquiring, developing and constructing real estate assets. We expense transaction costs for acquisitions that qualify as a business in accordance with the “ Business Combinations ” Topic of the FASB ASC (Topic 805). Pursuit costs capitalized in connection with a potential development project that we have determined not to pursue are written off in the period that determination is made. At times, we purchase bulk land that we intend to sell or develop in phases. The land basis allocated to each phase is based on the relative estimated fair value of the phases before construction. We allocate construction costs incurred relating to more than one phase between the various phases; if the costs cannot be specifically attributed to a certain phase or the improvements benefit more than one phase, we allocate the costs between the phases based on their relative estimated sales values, where practicable, or other value methods as appropriate under the circumstances. Relative allocations of the costs are revised as the sales value estimates are revised. When acquiring real estate with existing buildings, we allocate the purchase price between land, land improvements, building and intangibles related to in-place leases, if any, based on their relative fair values. The fair values of acquired land and buildings are determined based on an estimated discounted future cash flow model with lease-up assumptions as if the building was vacant upon acquisition. The fair value of in-place leases includes the value of lease intangibles for above or below-market rents and tenant origination costs, determined on a lease by lease basis. The capitalized values for both lease intangibles and tenant origination costs are amortized over the term of the underlying leases. Amortization related to lease intangibles is recorded as either an increase to or a reduction of rental income and amortization for tenant origination costs is recorded to amortization expense. Disposition of Real Estate We account for gains and losses on the sale of real estate and other nonfinancial assets or in substance n onfinancial assets to noncustomers that are not a output of our ordinary activities and are not a business in accordance with Topic 610-20, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets.” Where we do not have a controlling financial interest in the entity that holds the transferred assets after the transaction, we derecognize the assets or in substance nonfinancial assets and recognize a gain or loss when control of the underlying assets transfer to the counterparty. We may also dispose of real estate through the transfer of a long-term leasehold representing a major part of the remaining economic life of the property. We account for these transfers as sales-type leases in accordance with the “ Lease s” Topic of the FASB ASC (Topic 842) by derecognizing the carrying amount of the underlying asset, recognizing any net investment in the lease and recognizing selling profit or loss in net income. Goodwill and Other Intangible Assets Our acquisitions require the application of purchase accounting, which results in tangible and identifiable intangible assets and liabilities of the acquired entity being recorded at fair value. The difference between the purchase price and the fair value of net assets acquired is recorded as goodwill. The majority of our goodwill balance has resulted from our acquisition of CBRE Services, Inc. (CBRE Services) in 2001 (the 2001 Acquisition), our acquisition of Insignia Financial Group, Inc. (Insignia) in 2003 (the Insignia Acquisition), our acquisition of the Trammell Crow Company in 2006 (the Trammell Crow Company Acquisition), our acquisition of substantially all of the ING Group N.V. (ING) Real Estate Investment Management (REIM) operations in Europe and Asia, as well as substantially all of Clarion Real Estate Securities (CRES) in 2011 (collectively referred to as the REIM Acquisitions), our acquisition of Norland Managed Services Ltd (Norland) in 2013 (the Norland Acquisition), our acquisition of Johnson Controls, Inc. (JCI)’s Global Workplace Solutions (JCI-GWS) business in 2015, our acquisition of FacilitySource Holdings, LLC (FacilitySource) in 2018 and our acquisition of Telford Homes Plc (Telford) on October 1, 2019. Other intangible assets that have indefinite estimated useful lives that are not being amortized include certain management contracts identified in the REIM Acquisitions, a trademark, which was separately identified as a result of the 2001 Acquisition, as well as a trade name separately identified as a result of the REIM Acquisitions. The remaining other intangible assets primarily include customer relationships, mortgage servicing rights and trade names/trademarks, which are all being amortized over estimated useful lives ranging up to 20 years. We are required to test goodwill and other intangible assets deemed to have indefinite useful lives for impairment at least annually, or more often if circumstances or events indicate a change in the impairment status, in accordance with FASB ASC Topic 350, “ Intangibles – Goodwill and Other. ” ASC paragraphs 350-20-35-3 through 35-3B permit, but do not require an entity to perform a qualitative assessment with respect to any of its reporting units to determine whether a quantitative impairment test is needed. Entities are permitted to assess based on qualitative factors whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the quantitative goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity conducts the quantitative goodwill impairment test. If not, the entity does not need to apply the quantitative test. The qualitative test is elective and an entity can go directly to the quantitative test rather than making a more-likely-than-not assessment based on an evaluation of qualitative factors. When performing a quantitative test, we use a discounted cash flow approach to estimate the fair value of our reporting units. Management’s judgment is required in developing the assumptions for the discounted cash flow model. These assumptions include revenue growth rates, profit margin percentages, discount rates, etc. Leases We are the lessee in contracts for our office space tenancies, for leased vehicles and for our indirect wholly-owned subsidiary CBRE Hana, LLC (Hana). We monitor our service arrangements to evaluate whether they meet the definition of a lease. Effective January 1, 2019, we adopted the guidance in Leases (Topic 842) using the optional transitional method associated with no adjustment to comparative financial statements presented for prior periods. We elected certain practical expedients, including the package of transition practical expedients and the practical expedient to forego separating lease and non-lease components in our lease contracts. As a result of the adoption of Topic 842, the consolidated balance sheet as of January 1, 2019 included $1.2 billion of additional lease liabilities, along with corresponding right-of-use assets of $1.0 billion, reflecting adjustments for items such as prepaid and deferred rent, unamortized initial direct costs, and unamortized lease incentive balances. The adoption of the leasing guidance did not have a material impact on our consolidated statement of operations. The present value of lease payments, which are either fixed payments, in-substance fixed payments, or variable payments tied to an index or rate are recognized on the consolidated balance sheet with corresponding lease liabilities and right-of-use assets upon the commencement of the lease. These lease costs are expensed over the respective lease term in accordance with the classification of the lease (i.e., operating versus finance classification). Variable lease payments not tied to an index or rate are expensed as incurred and are not subject to capitalization. The base terms for our lease arrangements typically do not extend beyond 10 years. We commonly have renewal options in our leases, but most of these options do not create a significant economic incentive for us to extend the lease term. Therefore, payments during periods covered by these renewal options are typically not included in our lease liabilities and right-of-use assets. Specific to our vehicle leases, early termination options are common and economic penalties associated with early termination of these contracts are typically significant enough to make it reasonably certain that we will not exercise such options. Therefore, payments during periods covered by these early termination options in vehicle leases are typically included in our lease liabilities and right-of-use assets. As an accounting policy election, our short-term leases with an initial term of 12 months or less are not recognized as lease liabilities and right-of-use assets in the consolidated balance sheets. The rent expense associated with short term leases is recognized on a straight-line basis over the lease term and was not significant. Most of our office space leases include variable payments based on our share of actual common area maintenance and operating costs of the leased property. Many of our vehicle leases include variable payments based on actual service and fuel costs. For both office space and vehicle leases, we have elected the practical expedient to not separate lease components from non-lease components. Therefore, these costs are classified as variable lease payments. Lease payments are typically discounted at our incremental borrowing rate because the interest rate implicit in the lease cannot be readily determined in the absence of key inputs which are typically not reported by our lessors. Because we do not generally borrow on a collateralized basis, judgement was used to estimate the secured borrowing rate associated with our leases based on relevant market data and our inputs applied to accepted valuation methodologies. The incremental borrowing rate calculated for each lease also reflects the lease term, currency, and geography specific to each lease. Costs incurred in connection with financing activities are generally deferred and amortized over the terms of the related debt agreements ranging up to ten years. Debt issuance costs related to a recognized debt liability are presented in the accompanying consolidated balance sheets as a direct deduction from the carrying amount of that debt liability. Amortization of these costs is charged to interest expense in the accompanying consolidated statements of operations. Accounting Standards Update (ASU) 2015-15, “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” Revenue Recognition We account for revenue with customers in accordance with FASB ASC Topic, “ Revenue from Contracts with Customers ” (Topic 606). Topic 606 also includes Subtopic 340-40, “ Other Assets and Deferred Costs – Contracts with Customers ,” which requires deferral of incremental costs to obtain and fulfill a contract with a customer. We adopted the new revenue recognition guidance on January 1, 2018, using the full retrospective method. Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The following is a description of principal activities – separated by reportable segments – from which we generate revenue. For more detailed information about our reportable segments, see Notes 18 and 19. Advisory Services Our Advisory Services segment provides a comprehensive range of services globally, including property leasing, property sales, mortgage services, property management, project management services and valuation services. Property Leasing and Property Sales We provide strategic advice and execution for owners, investors, and occupiers of real estate in connection with the leasing of office, industrial and retail space. We also offer clients fully integrated property sales services under the CBRE Capital Markets brand. We are compensated for our services in the form of a commission and, in some instances may earn various forms of variable incentive consideration. Our commission is paid upon the occurrence of certain contractual event(s) which may be contingent. For example, a portion of our leasing commission may be paid upon signing of the lease by the tenant, with the remaining paid upon occurrence of another future contingent event (e.g. payment of first month’s rent or tenant move-in). For leases, we typically satisfy our performance obligation at a point in time when control is transferred; generally, at the time of the first contractual event where there is a present right to payment. We look to history, experience with a customer, and deal specific considerations as part of the most likely outcome estimation approach to support our judgement that the second contingency (if applicable) will be met. Therefore, we typically accelerate the recognition of the revenue associated with the second contingent event. For sales, our commission is typically paid at the closing of the sale, which represents transfer of control for services to the customer. In addition to our commission, we may recognize other forms of variable consideration which can include, but are not limited to, commissions subject to concession or claw back and volume based discounts or rebates. We assess variable consideration on a contract by contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. We recognize variable consideration if it is deemed probable that there will not be significant reversal in the future. Mortgage Originations and Loan Sales We offer clients commercial mortgage and structured financing services. Fees from services within our mortgage brokerage business that are in the scope of Topic 606 include fees earned for the brokering of commercial mortgage loans primarily through relationships established with investment banking firms, national and regional banks, credit companies, insurance companies and pension funds. We are compensated for our brokerage services via a fee paid upon successful placement of a commercial mortgage borrower with a lender who will provide financing. The fee earned is contingent upon the funding of the loan, which represents the transfer of control for services to the customer. Therefore, we typically satisfy our performance obligation at the point in time of the funding of the loan. We also earn fees from the origination and sale of commercial mortgage loans for which the company retains the servicing rights. These fees are governed by the “ Fair Value Measurements and Disclosures ” topic (Topic 820) and “ Transfers and Servicing ” topic (Topic 860) of the FASB ASC. Upon origination of a mortgage loan held for sale, the fair value of the mortgage servicing rights (MSR) to be retained is included in the forecasted proceeds from the anticipated loan sale and results in a net gain (which is reflected in revenue). Upon sale, we record a servicing asset or liability based on the fair value of the retained MSR associated with the transferred loan. Subsequent to the initial recording, MSRs are amortized and carried at the lower of amortized cost or fair value in other intangible assets in the accompanying consolidated balance sheets. They are amortized in proportion to and over the estimated period that the servicing income is expected to be received. Property Management and Project Management Services We provide property management services on a contractual basis for owners of and investors in office, industrial and retail properties. These services include construction management, marketing, building engineering, accounting and financial services. We are compensated for our services through a monthly management fee earned based on either a specified percentage of the monthly rental income, r |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements The FASB previously issued five ASUs related to financial instruments—credit losses. The ASUs issued were: (1) in June 2016, ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” (2) in November 2018, ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses,” (3) in April 2019, ASU 2019-04, “ Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging , and Topic 825, Financial Instruments,” (4) in May 2019, ASU 2019-05, “ Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief,” and (5) in November 2019, ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses.” Additionally, in February and March 2020, the FASB issued ASU 2020-02, “Financial Instruments—Credit Losses (Topic 326)” and “Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to ASU 2016-02, Leases (Topic 842)” and ASU 2020-03, “ Codification Improvements to Financial Instruments,” respectively, which include amendments to Topic 326. ASU 2016-13 is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leasing standard. ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on financial instruments—credit losses, derivatives and hedging, and financial instruments. ASU 2019-05 provides entities that have certain instruments within the scope of Subtopic 326-20, “ Financial Instruments—Credit Losses—Measured at Amortized Cost ,” with an option to irrevocably elect the fair value option in Subtopic 825-10, “ Financial Instruments—Overall .” ASU 2019-11 clarifies guidance around how to report expected recoveries and reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities, among other narrow scope and technical improvements. ASU 2020-02 adds an SEC paragraph pursuant to the issuance of SEC Staff Accounting Bulletin No. 119 on loan losses to Topic 326 and also updates the SEC section of the codification for the change in the effective date of Topic 842. ASU 2020-03 makes narrow-scope improvements to various aspects of the financial instrument guidance as part of the FASB’s ongoing codification improvement project aimed at clarifying specific areas of accounting guidance to help avoid unintended application. We adopted ASU 2016-13, ASU 2018-19 (as it relates to financial instruments—credit losses), ASU 2019-05, ASU 2019-11, ASU 2020-02 and ASU 2020-03 in the first quarter of 2020 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In November 2018, the FASB issued ASU 2018‑18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606.” This ASU provides guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within the revenue recognition standard and provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those years, with early adoption permitted. We adopted ASU 2018‑18 in the first quarter of 2020 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018‑14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for fiscal years ending after December 15, 2020, with early adoption permitted. ASU 2018-14 only revises disclosure requirements. We adopted ASU 2018‑14 in the fourth quarter of 2020 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. Recent Accounting Pronouncements Pending Adoption In December 2019, the FASB issued ASU 2019‑12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU removes specific exceptions to the general principles in Topic 740 and improves and simplifies financial statement preparers’ application of income tax-related guidance. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years, with early adoption permitted. We are evaluating the effect that ASU 2019‑12 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In January 2020, the FASB issued ASU 2020‑01, “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815).” This ASU, among other things, clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323 and clarifies that, when determining the accounting for certain forward contracts and purchased options a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years, with early adoption permitted. We are evaluating the effect that ASU 2020‑01 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. This ASU is effective for a limited time for all entities through December 31, 2022. We are evaluating the effect that ASU 2020-04 will have on our consolidated financial statements and related disclosures. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables — Nonrefundable Fees and Other Costs.” This ASU states that an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33 for each reporting period. The ASU is not expected to have a significant effect on current practice or create a large administrative cost for most entities. The amendments stated in this ASU are intended to make ASC 310-20 easier to understand and apply. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years. Early application is not permitted. We are evaluating the effect that ASU 2020-08 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In October 2020, the FASB issued ASU 2020-09, “ Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762. ” This ASU aligns the SEC paragraphs in the codification with the new SEC rules issued in March 2020 relating to changes to the disclosure requirements for certain debt securities. Certain glossary terms were superseded, and amendments were made to debt and other topics as a result of this update. On March 2, 2020, the SEC issued Release No. 33-10762 , which made significant changes to its disclosure requirements relating to certain debt securities. The new rules impact disclosures related to registered securities that are guaranteed and those that are collateralized by the securities of an affiliate. The final rules became effective on January 4, 2021. Voluntary compliance with the final amendments in advance of January 4, 2021 is permitted. We are evaluating the effect that ASU 2020-09 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements.” This ASU is intended to conform, clarify, simplify, and/or provide technical corrections to a wide variety of codification topics, including moving certain presentation and disclosure guidance to the appropriate codification section. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years. Early application of the amendments is permitted for and varies based on the entity. The amendments should be applied retrospectively and at the beginning of the period that includes the adoption date. We are evaluating the effect that ASU 2020-10 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. |
Telford Acquisition
Telford Acquisition | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Telford Acquisition | Telford Acquisition On October 1, 2019, we acquired Telford Homes Plc (Telford) to expand our real estate development business outside of the U.S. (Telford acquisition). A leading developer of multifamily residential properties in the London area, Telford is reported in our Real Estate Investments segment. Telford shareholders received £3.50 per share in cash, valuing Telford at £267.1 million, or $328.5 million as of the acquisition date. The Telford Acquisition was funded with borrowings under our revolving credit facility. The following represents the summary of the excess purchase price over the fair value of net assets acquired (dollars in thousands): Purchase price $ 328,502 Less: Final fair value of net assets acquired (see table below) 297,669 Excess purchase price over fair value of net assets acquired $ 30,833 The excess purchase price over the fair value of net assets acquired has been recorded to goodwill. No significant changes were made during the year ended December 31, 2020 to the preliminary purchase accounting recorded during 2019. The goodwill arising from the Telford Acquisition consists largely of the synergies and economies of scale expected from combining the operations acquired from Telford with ours. The goodwill recorded in connection with the Telford Acquisition that is deductible for tax purposes was not significant. The following table summarizes the final fair values assigned to the identified assets acquired and liabilities assumed (dollars in thousands): Assets Acquired: Cash and cash equivalents $ 7,896 Receivables 6,993 Contract assets, current 31,850 Prepaid expenses 2,704 Property and equipment 2,637 Other intangible assets 26,749 Operating lease assets 6,488 Investments in unconsolidated subsidiaries 79,667 Non-current contract assets 8,015 Real estate under development 208,402 Deferred tax assets, net 2,857 Other assets (current and non-current) 99,429 Total assets acquired 483,687 Liabilities Assumed: Accounts payable and accrued expenses 47,552 Compensation and employee benefits payable 1,580 Accrued bonus 3,274 Operating lease liabilities 941 Contract liabilities, current 1,949 Income taxes payable 1,813 Line of credit 110,687 Non-current operating lease liabilities 5,547 Other liabilities (current and non-current) 12,675 Total liabilities assumed 186,018 Fair Value of Net Assets Acquired $ 297,669 In connection with the Telford Acquisition, below is a summary of the value allocated to the trademark acquired (dollars in thousands): December 31, 2019 Asset Class Amortization Amount Accumulated Net Carrying Trademark 20 Years $ 26,749 $ 1,725 $ 28,474 The accompanying consolidated statement of operations for the year ended December 31, 2019 includes revenue, operating income and operational net income of $97.5 million, $1.0 million and $1.4 million, respectively, attributable to the Telford Acquisition. This does not include direct transaction and integration costs of $15.0 million and amortization expense of $0.4 million related to the trademark acquired, all of which were incurred during the year ended December 31, 2019 in connection with the Telford Acquisition. Unaudited pro forma results, assuming the Telford Acquisition had occurred as of January 1, 2018 for purposes of the pro forma disclosures for the years ended December 31, 2019 and 2018 are presented below. They include certain adjustments for increased amortization expense related to the trademark acquired (approximately $1.0 million and $1.5 million in 2019 and 2018, respectively) as well as increased interest expense (approximately $4.1 million in 2018) associated with borrowings under our revolving credit facility used to fund the acquisition. Pro forma adjustments also include the removal of $15.0 million of direct costs incurred by us during the year ended December 31, 2019 as well as the tax impact of all pro forma adjustments for all periods presented. These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the Telford Acquisition occurred on January 1, 2018 and may not be indicative of future operating results (dollars in thousands, except share data): Year Ended December 31, 2019 2018 Revenue $ 24,158,427 $ 21,803,506 Operating income 1,294,480 1,157,051 Net income attributable to CBRE Group, Inc. 1,321,097 1,121,469 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 3.93 $ 3.31 Weighted average shares outstanding for basic income per share 335,795,654 339,321,056 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 3.88 $ 3.27 Weighted average shares outstanding for diluted income per share 340,522,871 343,122,741 |
Warehouse Receivables & Warehou
Warehouse Receivables & Warehouse Lines of Credit | 12 Months Ended |
Dec. 31, 2020 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Warehouse Receivables & Warehouse Lines of Credit | Warehouse Receivables & Warehouse Lines of Credit A rollforward of our warehouse receivables is as follows (dollars in thousands): Beginning balance at December 31, 2019 $ 993,058 Origination of mortgage loans 21,268,114 Gains (premiums on loan sales) 75,227 Proceeds from sale of mortgage loans: Sale of mortgage loans (20,862,294) Cash collections of premiums on loan sales (75,227) Proceeds from sale of mortgage loans (20,937,521) Net increase in mortgage servicing rights included in warehouse receivables 12,292 Ending balance at December 31, 2020 $ 1,411,170 The following table is a summary of our warehouse lines of credit in place as of December 31, 2020 and 2019 (dollars in thousands): December 31, 2020 December 31, 2019 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 10/18/2021 daily floating rate LIBOR plus 1.60% $ 1,585,000 $ 561,726 $ 985,000 $ 267,075 JP Morgan (2) 10/18/2021 daily floating rate LIBOR plus 2.75% 15,000 — 15,000 — Capital One, N.A. (Capital One) (3) — — 200,000 39,538 Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program (4) Cancelable daily one-month LIBOR plus 1.45%, with a LIBOR floor of 0.25% 450,000 132,692 450,000 360,784 TD Bank, N.A. (TD Bank) (5) 6/30/2021 2-Business Day Prior LIBOR plus 1.15% 800,000 401,849 800,000 92,266 Bank of America, N.A. (BofA) (6) 5/26/2021 (7) 350,000 175,862 350,000 189,465 BofA (8) — — 250,000 17,457 MUFG Union Bank, N.A. (Union Bank) (9) 6/28/2021 daily floating rate LIBOR plus 1.50%, with a LIBOR floor of 0.25% 300,000 111,835 350,000 10,590 $ 3,500,000 $ 1,383,964 $ 3,400,000 $ 977,175 _______________ (1) Effective October 19, 2020, this facility was amended and the maximum facility size was temporarily increased to $1,585.0 million, and reverted back to $985.0 million on January 18, 2021. The interest rate increased to daily floating rate LIBOR plus 1.60% and the revised maturity date is October 18, 2021. Effective December 1, 2020, the maximum facility was temporarily increased to $2,085.0 million, which reverted back to $1,585.0 million on December 31, 2020. (2) Effective October 19, 2020, the maturity date was extended to October 18, 2021. (3) This facility expired on July 27, 2020 and was not renewed. (4) Effective September 25, 2020, the spread was increased by 10 bps and the LIBOR floor was reduced to 0.25%. (5) Effective July 1, 2020, this facility was amended and provides for a maximum aggregate principal amount of $400.0 million, in addition to an uncommitted $400.0 million temporary line of credit, with an unchanged interest rate and revised maturity date of June 30, 2021. Effective September 21, 2020, CBRE utilized the additional $400.0 million as a temporary increase, which expired on December 31, 2020. (6) On June 10, 2020, this facility was amended with a revised maturity date of May 26, 2021. The total commitment amount of $350.0 million includes a separate sublimit borrowing in the amount of $100.0 million, which can be utilized for specific purposes as defined within the agreement. As of December 31, 2020, the sublimit borrowing has not been utilized. (7) Effective July 24, 2020, the interest rate on this facility was as follows: (i) daily floating rate LIBOR plus 1.40%, with a LIBOR floor of 0.25%, on the general facility and (ii) daily floating rate LIBOR plus 1.75% on the separate sublimit borrowing. (8) This facility expired on May 27, 2020 and was not renewed. (9) On June 28, 2019, we added a new warehouse facility for $200.0 million that contains an accordion feature which allowed for temporary increases not to exceed an additional $150.0 million. If utilized, the additional borrowings must be in predefined multiples and are not to occur more than three times within twelve consecutive months. On June 26, 2020, the maturity was extended to July 28, 2020 and on July 28, 2020 the maturity date was extended to August 27, 2020. Effective August 4, 2020, this facility was amended with a revised interest rate of daily floating rate LIBOR plus 1.50%, with a floor of 0.25%, and a maturity date of June 28, 2021. Additionally, this amendment decreased the accordion feature from $150.0 million to $100.0 million, with no changes to the predefined borrowing multiples. On September 22, 2020, the temporary increase of $100.0 million was utilized and expired on January 20, 2021. During the year ended December 31, 2020, we had a maximum of $3.5 billion of warehouse lines of credit principal outstanding. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entities | Variable Interest Entities We hold variable interests in certain VIEs in our Real Estate Investments segment which are not consolidated as it was determined that we are not the primary beneficiary. Our involvement with these entities is in the form of equity co-investments and fee arrangements. As of December 31, 2020 and 2019, our maximum exposure to loss related to the VIEs that are not consolidated was as follows (dollars in thousands): December 31, 2020 2019 Investments in unconsolidated subsidiaries $ 66,947 $ 30,484 Other current assets 4,219 4,307 Co-investment commitments 47,957 29,696 Maximum exposure to loss $ 119,123 $ 64,487 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following tables present the fair value of assets measured at fair value on a recurring basis as of December 31, 2020 and 2019 (dollars in thousands): December 31, 2020 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 7,270 $ — $ — $ 7,270 Debt securities issued by U.S. federal agencies — 10,216 — 10,216 Corporate debt securities — 51,244 — 51,244 Asset-backed securities — 3,801 — 3,801 Collateralized mortgage obligations — 1,369 — 1,369 Total available for sale debt securities 7,270 66,630 — 73,900 Equity securities 43,334 — — 43,334 Investments in unconsolidated subsidiaries — — 50,000 50,000 Warehouse receivables — 1,411,170 — 1,411,170 Total assets at fair value $ 50,604 $ 1,477,800 $ 50,000 $ 1,578,404 December 31, 2019 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 6,998 $ — $ — $ 6,998 Debt securities issued by U.S. federal agencies — 10,639 — 10,639 Corporate debt securities — 29,098 — 29,098 Asset-backed securities — 5,152 — 5,152 Collateralized mortgage obligations — 2,222 — 2,222 Total available for sale debt securities 6,998 47,111 — 54,109 Equity securities 51,399 — — 51,399 Warehouse receivables — 993,058 — 993,058 Total assets at fair value $ 58,397 $ 1,040,169 $ — $ 1,098,566 Fair value measurements for our available for sale debt securities are obtained from independent pricing services which utilize observable market data that may include quoted market prices, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument's terms and conditions. The equity securities are generally valued at the last reported sales price on the day of valuation or, if no sales occurred on the valuation date, at the mean of the bid and ask prices on such date. We classify one investment as level 3 in the fair value hierarchy which represents an investment in a non-public entity where we elected the fair value option. The carrying value is deemed to approximate the fair value of this investment due to the proximity of the investment date to the balance sheet date as well as investee-level performance updates. As of December 31, 2020 and 2019, investments in unconsolidated subsidiaries at fair value using NAV were $66.3 million and $124.3 million, respectively. These investments fall under practical expedient rules that do not require them to be included in the fair value hierarchy and as a result have been excluded from the tables above. The fair values of the warehouse receivables are primarily calculated based on already locked in purchase prices. At December 31, 2020 and 2019, all of the warehouse receivables included in the accompanying consolidated balance sheets were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Ginnie Mae mortgage backed securities that will be secured by the underlying loans (See Notes 2 and 5). These assets are classified as Level 2 in the fair value hierarchy as a substantial majority of inputs are readily observable. The following non-recurring fair value measurements were recorded for the year ended December 31, 2020 (dollars in thousands): Net Carrying Value as of December 31, 2020 Fair Value Measured and Recorded Using Total Impairment Charges for the Year Ended December 31, 2020 Level 1 Level 2 Level 3 Property and equipment $ 12,870 $ — $ 12,870 $ — $ 29,168 Goodwill 443,305 — — 443,305 25,000 Other intangible assets 12,562 — — 12,562 34,508 Total $ 468,737 $ — $ 12,870 $ 455,867 $ 88,676 During the year ended December 31, 2020, we recorded $50.2 million of non-cash asset impairment charges in our Global Workplace Solutions segment; a non-cash goodwill impairment charge of $25.0 million and certain non-cash asset impairment charges of $13.5 million in our Real Estate Investments segment. Primarily as a result of the recent global economic disruption and uncertainty due to Covid-19, we deemed there to be triggering events during 2020 that required testing of goodwill and certain assets for impairment. Based on these events, we recorded the aforementioned non-cash impairment charges, which were primarily driven by lower anticipated cash flows in certain businesses directly resulting from a downturn in forecasts as well as increased forecast risk due to Covid-19 and changes in our business going forward. The following non-recurring fair value measurements were recorded for the year ended December 31, 2019 (dollars in thousands): Net Carrying Value as of December 31, 2019 Fair Value Measured and Recorded Using Total Impairment Charges for the Year Ended December 31, 2019 Level 1 Level 2 Level 3 Other intangible assets $ 14,753 $ — $ — $ 14,753 $ 89,787 During the year ended December 31, 2019, we recorded an intangible asset impairment of $89.8 million in our Real Estate Investments segment. This non-cash write-off resulted from a review of the anticipated cash flows and the decrease in assets under management in our public securities business driven in part by continued industry-wide shift in investor preference for passive investment programs. All of the above-mentioned asset impairment charges were included within the line item “Asset impairments” in the accompanying consolidated statements of operations. The fair value measurements employed for our impairment evaluations were based on a discounted cash flow approach. Inputs used in these evaluations included risk-free rates of return, estimated risk premiums, terminal growth rates, working capital assumptions, income tax rates as well as other economic variables. During the year ended December 31, 2018, we recorded a gain of $100.4 million associated with remeasuring our 50% investment in a previously unconsolidated subsidiary in New England to fair value as of the date we acquired the remaining 50% controlling interest. Fair value of this investment in our unconsolidated subsidiary as of the acquisition date was $110.1 million based upon the purchase price paid for the remaining 50% interest acquired, excluding the estimated control premium paid, which falls under Level 3 of the fair value hierarchy. Such gain was reflected in other income in our Advisory Services segment in the accompanying consolidated statements of operations for the year ended December 31, 2018. FASB ASC Topic 825, “ Financial Instruments, ” requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments are as follows: • Cash and Cash Equivalents and Restricted Cash – These balances include cash and cash equivalents as well as restricted cash with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments. • Receivables, less Allowance for Doubtful Accounts – Due to their short-term nature, fair value approximates carrying value. • Warehouse Receivables – These balances are carried at fair value. The primary source of value is either a contractual purchase commitment from Freddie Mac or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS (see Notes 2 and 5). • Investments in Unconsolidated Subsidiaries – A portion of these investments are carried at fair value. At December 31, 2020, we did not classify any investments in unconsolidated subsidiaries as Level 1 in the fair value hierarchy. For investments in unconsolidated subsidiaries that are carried at fair value, we estimate the fair value of each investment using the NAV per share (or its equivalent). • Available for Sale Debt Securities – These investments are carried at their fair value. • Equity Securities – These investments are carried at their fair value. • Investments Held in Trust - special purpose acquisition company – Funds received as part of the initial public offering of CBRE Acquisition Holdings have been deposited in an interest-bearing U.S. based trust account. The funds will be invested only in specified U.S. government treasury bills with a maturity of 180 days or less or in money market funds. The carrying amount approximates fair value due to the short-term maturities of these instruments. (See Note 2). • Short-Term Borrowings – The majority of this balance represents outstanding amounts under our warehouse lines of credit of our wholly-owned subsidiary, CBRE Capital Markets and our revolving credit facility. Due to the short-term nature and variable interest rates of these instruments, fair value approximates carrying value (see Notes 5 and 11). • Senior Term Loans – Based upon information from third-party banks (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our senior term loans was approximately $772.2 million and $745.5 million at December 31, 2020 and 2019, respectively. Their actual carrying value, net of unamortized debt issuance costs, totaled $785.7 million and $744.6 million at December 31, 2020 and 2019, respectively (see Note 11). • Senior Notes – Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our 4.875% senior notes was $702.5 million and $670.7 million at December 31, 2020 and 2019, respectively. The actual carrying value of our 4.875% senior notes, net of unamortized debt issuance costs and unamortized discount, totaled $594.5 million and $593.6 million at December 31, 2020 and 2019, respectively. On December 28, 2020, we redeemed the $425.0 million aggregate outstanding principal amount of our 5.25% senior notes in full (See Note 11). At December 31, 2019, the estimated fair value and actual carrying value (net of unamortized debt issuance costs as well as unamortized premium) of our 5.25% senior notes was $478.3 million and $423.0 million, respectively. • Notes Payable on Real Estate – As of December 31, 2020 and 2019, the carrying value of our notes payable on real estate, net of unamortized debt issuance costs, was $79.6 million and $13.1 million, respectively. These notes payable were not recourse to CBRE Group, Inc., except for being recourse to the single-purpose entities that held the real estate assets and were the primary obligors on the notes payable. These borrowings have either fixed interest rates or floating interest rates at spreads added to a market index. Although it is possible that certain portions of our notes payable on real estate may have fair values that differ from their carrying values, based on the terms of such loans as compared to current market conditions, or other factors specific to the borrower entity, we do not believe that the fair value of our notes payable is significantly different than their carrying value. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (dollars in thousands): December 31, Useful Lives 2020 2019 Computer hardware and software 2-10 years $ 974,490 $ 931,891 Leasehold improvements 1-15 years 554,252 510,917 Furniture and equipment 1-10 years 243,880 334,625 Construction in progress N/A 117,274 129,671 Total cost 1,889,896 1,907,104 Less: Accumulated depreciation and amortization 1,074,887 1,070,898 Property and equipment, net $ 815,009 $ 836,206 Depreciation and amortization expense associated with property and equipment was $268.3 million, $207.8 million and $192.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. During the year ended December 31, 2020, we recorded $29.2 million in asset impairment charges related to property and equipment (see Note 7). Construction in progress includes capitalizable costs incurred during the development stage of computer software and leasehold improvements that have not yet been placed in service. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets On August 17, 2018, we announced a new organizational structure that became effective on January 1, 2019. Under the new structure, we organize our operations around, and publicly report our financial results on, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions and (3) Real Estate Investments (see Note 19). In connection with this change, we reassessed our reporting units as of January 1, 2019. As a result, we have reassigned the goodwill balance to reflect our new segment structure using a relative fair value allocation approach. Under this approach, the fair value of each impacted reporting unit was determined using a combination of the income approach and the market approach and was compared to the goodwill of the impacted regional segments immediately prior to the reorganization to arrive at the reassigned goodwill balance. We are required to test goodwill for impairment at least annually, or more often if circumstances or events indicate there may be a change in the impairment status, in accordance with Topic 350. We considered the change to our reportable segments and the resulting change in our identified reporting units to be a triggering event that required testing of our goodwill for impairment as of January 1, 2019. We elected to perform a quantitative test using a discounted cash flow approach to estimate the fair value of our reporting units. Management’s judgment is required in developing the assumptions for the discounted cash flow model. These assumptions include revenue growth rates, profit margin percentages, discount rates, etc. When we performed our goodwill impairment review as of January 1, 2019, we determined that no impairment existed as the estimated fair value of each of our reporting units was in excess of their carrying value. During the first quarter of 2020, as a result of the Covid-19 pandemic, we assessed at a reporting unit level whether any triggering events had occurred during the period that would require us to perform a quantitative impairment analysis of goodwill. As a result of this evaluation, we determined that there was a triggering event in our global investment management reporting unit (which falls within our Real Estate Investments segment) that required a quantitative test to be performed. In connection with this quantitative evaluation, we determined that this reporting unit’s goodwill was impaired and recorded a $25.0 million non-cash impairment charge during the first quarter. Our annual assessment of goodwill and other intangible assets deemed to have indefinite lives has historically been completed as of the beginning of the fourth quarter of each year. We performed the 2020, 2019 and 2018 annual assessments as of October 1. During 2020, as part of our annual assessment, we identified a change in our reporting units due to an internal reorganization in our GWS segment. When we performed our required annual goodwill impairment review as of October 1, 2020, 2019 and 2018, we determined that no impairment existed as the estimated fair value of our reporting units was in excess of their carrying value. The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 (dollars in thousands): Advisory Global Real Estate Total Balance as of December 31, 2018 Goodwill $ 3,269,954 $ 875,570 $ 575,291 4,720,815 Accumulated impairment losses (761,448) (175,473) (131,585) (1,068,506) 2,508,506 700,097 443,706 3,652,309 Purchase accounting entries related to acquisitions 29,544 7,657 42,176 79,377 Foreign exchange movement 2,720 16,279 2,808 21,807 Balance as of December 31, 2019 Goodwill 3,302,218 899,506 620,275 4,821,999 Accumulated impairment losses (761,448) (175,473) (131,585) (1,068,506) 2,540,770 724,033 488,690 3,753,493 Purchase accounting entries related to acquisitions 16,463 9,702 (7,984) 18,181 Impairment — — (25,000) (25,000) Foreign exchange movement 30,107 28,589 16,239 74,935 Balance as of December 31, 2020 Goodwill 3,348,788 937,797 628,530 4,915,115 Accumulated impairment losses (761,448) (175,473) (156,585) (1,093,506) $ 2,587,340 $ 762,324 $ 471,945 $ 3,821,609 During 2020, we completed six in-fill acquisitions: leading local facilities management firms in Spain and Italy, a U.S. firm that helps companies reduce telecommunications costs, a technology focused project management firm based in Florida, a firm specializing in performing real estate valuations in South Korea, and a facilities management and technical maintenance firm in Australia. During 2019, in addition to the Telford Acquisition (see Note 4), we completed eight in-fill acquisitions: a leading advanced analytics software company based in the U.K., a commercial and residential real estate appraisal firm in Florida, our former affiliate in Omaha, a project management firm in Australia, a valuation and consulting business in Switzerland, a leading project management firm in Israel, a full-service real estate firm in San Antonio with a focus on retail, office, medical office and land, and a debt-focused real estate investment management business in the U.K. On June 12, 2018, we acquired FacilitySource through a stock purchase and merger agreement with its stockholders, including FacilitySource Holdings, LLC, WP X Finance, LP and Warburg Pincus X Partners, LP (FacilitySource Acquisition). FacilitySource, which is reported in our Global Workplace Solutions segment, was acquired to help us build a tech-enabled supply chain capability for the occupier outsourcing industry, which would drive meaningfully differentiated outcomes for leading occupiers of real estate. The final net purchase price was approximately $266.5 million paid in cash, with $263.0 million paid in 2018 and $3.5 million paid in 2019. We financed the transaction with cash on hand and borrowings under our revolving credit facility. The purchase accounting related to the FacilitySource Acquisition has been finalized (with no changes made in 2019 to the preliminary purchase accounting recorded in 2018). The excess purchase price over the estimated fair value of net assets acquired has been recorded to goodwill. The goodwill arising from the FacilitySource Acquisition consisted largely of the synergies and economies of scale expected from combining the operations acquired from FacilitySource with ours. The goodwill recorded in connection with the FacilitySource Acquisition that is deductible for tax purposes was not significant. During 2018, we completed six in-fill acquisitions, the largest of which was the purchase of the remaining 50% equity interest in our longstanding New England joint venture. We also acquired a retail leasing and property management firm in Australia, two firms in Israel (our former affiliate and a majority interest in a local facilities management provider), a commercial real estate services provider in San Antonio, and a provider of real estate and facilities consulting services to healthcare companies across the U.S. Other intangible assets totaled $1,367.9 million, net of accumulated amortization of $1,556.5 million as of December 31, 2020, and $1,379.5 million, net of accumulated amortization of $1,358.5 million, as of December 31, 2019 and are comprised of the following (dollars in thousands): December 31, 2020 2019 Gross Accumulated Gross Accumulated Unamortizable intangible assets: Management contracts $ 67,422 $ 62,338 Trademarks 56,800 56,800 Trade name — 6,000 124,222 125,138 Amortizable intangible assets: Customer relationships 880,104 $ (603,866) 857,772 $ (519,162) Mortgage servicing rights 927,525 (370,634) 803,419 (319,927) Trademarks/Trade names 354,060 (111,595) 345,834 (92,730) Management contracts 152,312 (145,612) 142,767 (138,891) Covenant not to compete 73,750 (73,750) 73,750 (73,750) Other 412,477 (251,080) 389,394 (214,068) 2,800,228 (1,556,537) 2,612,936 (1,358,528) Total intangible assets $ 2,924,450 $ (1,556,537) $ 2,738,074 $ (1,358,528) Unamortizable intangible assets include management contracts identified as a result of the REIM Acquisitions relating to relationships with open-end funds, a trademark separately identified as a result of the 2001 Acquisition and a trade name separately identified in connection with the REIM Acquisitions. Customer relationships relate to existing relationships acquired through acquisitions mainly in our Global Workplace Solutions segment that are being amortized over useful lives of up to 20 years. Mortgage servicing rights represent the carrying value of servicing assets in the U.S. in our Advisory Services segment. The mortgage servicing rights are being amortized over the estimated period that net servicing income is expected to be received, which is typically up to 10 years. See Mortgage Servicing Rights discussion within Note 2 for additional information. In connection with the Telford Acquisition, a trademark of approximately $26.7 million was separately identified and is being amortized over 20 years (see Note 4). Trademarks of approximately $280 million were separately identified in connection with the GWS Acquisition and are being amortized over 20 years. Management contracts consist primarily of asset management contracts relating to relationships with closed-end funds and separate accounts in the U.S., Europe and Asia that were separately identified as a result of the REIM Acquisitions. These management contracts are being amortized over useful lives of up to 13 years. Other amortizable intangible assets mainly represent transition costs, which primarily get amortized to cost of revenue over the life of the associated contract. During the year ended December 31, 2020, we recorded non-cash impairment charges of $28.5 million in our Global Workplace Solutions segment related to amortizable trade name and customer relationships. In addition, we recorded non-cash impairment charges of $6.0 million in our Real Estate Investments segment (see Note 7). During the year ended December 31, 2019, we recorded an intangible asset impairment of $89.8 million in our Real Estate Investments segment. This non-cash write-off related to intangibles acquired in the REIM Acquisitions, including unamortizable management contracts relating to relationships with open-end funds and the Clarion Partners trade name in the U.S., as well as amortizable management contracts relating to relationships with closed-end funds and separate accounts in the U.S. Amortization expense related to intangible assets was $227.1 million, $225.7 million and $258.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. The estimated annual amortization expense for each of the years ending December 31, 2021 through December 31, 2025 and thereafter approximates $202.4 million, $180.1 million, $156.2 million, $134.2 million and $115.6 million, respectively. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries | Investments in Unconsolidated Subsidiaries Investments in unconsolidated subsidiaries are accounted for under the equity method of accounting. Our investment ownership percentages in equity method investments vary, generally ranging up to 50.0%. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): December 31, 2020 2019 Combined Condensed Balance Sheets Information: Current assets $ 6,508,718 $ 5,407,082 Non-current assets 24,343,229 20,414,598 Total assets $ 30,851,947 $ 25,821,680 Current liabilities $ 3,164,135 $ 2,241,930 Non-current liabilities 6,696,352 5,857,413 Total liabilities $ 9,860,487 $ 8,099,343 Non-controlling interests $ 460,904 $ 461,018 Year Ended December 31, 2020 2019 2018 Combined Condensed Statements of Operations Information: Revenue $ 2,036,818 $ 1,545,424 $ 1,524,685 Operating income 587,689 549,111 906,889 Net income 483,224 419,966 679,712 Our Real Estate Investments segment invests our own capital in certain real estate investments with clients. We provided investment management, property management, brokerage and other professional services in connection with these real estate investments and earned revenues from these unconsolidated subsidiaries of $145.9 million, $97.0 million and $134.3 million during the years ended December 31, 2020, 2019 and 2018, respectively. During the fourth quarter 2020, the company made a $50.0 million non-controlling investment in Industrious National Management Company LLC (“Industrious”). See Subsequent Event (Note 22). |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | Long-Term Debt and Short-Term Borrowings Total long-term debt and short-term borrowings consist of the following (dollars in thousands): December 31, 2020 2019 Long-Term Debt Senior term loans, with interest ranging from 0.75% to 1.15%, due quarterly through 2024 $ 788,759 $ 748,531 4.875% senior notes due in 2026, net of unamortized discount 597,470 597,052 5.25% senior notes, redeemed in December 2020 — 425,952 Other 1,514 1,861 Total long-term debt 1,387,743 1,773,396 Less: current maturities of long-term debt 1,514 1,814 Less: unamortized debt issuance costs 6,027 10,337 Total long-term debt, net of current maturities $ 1,380,202 $ 1,761,245 Short-Term Borrowings Warehouse lines of credit, with interest ranging from 1.65% to 2.89%, due in 2021 $ 1,383,964 $ 977,175 Other 5,330 4,534 Total short-term borrowings $ 1,389,294 $ 981,709 Future annual aggregate maturities of total consolidated gross debt (excluding unamortized discount, premium and debt issuance costs) at December 31, 2020 are as follows (dollars in thousands): 2021—$1,390,808; 2022—$0; 2023—$488,759; 2024—$300,000; 2025—$0 and $600,000 thereafter. Long-Term Debt We maintain credit facilities with third-party lenders, which we use for a variety of purposes. On March 4, 2019, CBRE Services, Inc. (CBRE Services) entered into an incremental assumption agreement with respect to its credit agreement, dated October 31, 2017 (such agreement, as amended by a December 20, 2018 incremental loan assumption agreement and such March 4, 2019 incremental assumption agreement, collectively, the 2019 Credit Agreement), which (i) extended the maturity of the U.S. dollar tranche A term loans under such credit agreement, (ii) extended the termination date of the revolving credit commitments available under such credit agreement and (iii) made certain changes to the interest rates and fees applicable to such tranche A term loans and revolving credit commitments under such credit agreement. The proceeds from the new tranche A term loan facility under the 2019 Credit Agreement were used to repay the $300.0 million of tranche A term loans outstanding under the credit agreement in effect prior to the entry into the 2019 incremental assumption agreement. The 2019 Credit Agreement is a senior unsecured credit facility that is jointly and severally guaranteed by us and certain of our subsidiaries. As of December 31, 2020, the 2019 Credit Agreement provided for the following: (1) a $2.8 billion incremental revolving credit facility, which includes the capacity to obtain letters of credit and swingline loans and terminates on March 4, 2024; (2) a $300.0 million incremental tranche A term loan facility maturing on March 4, 2024, requiring quarterly principal payments unless our leverage ratio (as defined in the 2019 Credit Agreement) is less than or equal to 2.50 to 1.00 on the last day of the fiscal quarter immediately preceding any such payment date and (3) a €400.0 million term loan facility due and payable in full at maturity on December 20, 2023. As of December 31, 2020, borrowings under the tranche A term loan facility under the 2019 Credit Agreement bear interest, based at our option, on either (1) the applicable fixed rate plus 0.875% to 1.25% or (2) the daily rate plus 0.0% to 0.25%, in each case as determined by reference to our Credit Rating (as defined in the 2019 Credit Agreement) and borrowings under the euro term loan facility under the 2019 Credit Agreement bear interest at a minimum rate of 0.75% plus EURIBOR. We had $297.9 million of tranche A term loan borrowings outstanding under the 2019 Credit Agreement (at an interest rate of 1.15%), net of unamortized debt issuance costs, included in the accompanying consolidated balance sheet at December 31, 2020. In addition, as of December 31, 2020, we had $487.7 million of euro term loan borrowings outstanding under the 2019 Credit Agreement (at an interest rate of 0.75%), net of unamortized debt issuance costs, included in the accompanying consolidated balance sheet. In March 2011, we entered into five interest rate swap agreements, all with effective dates in October 2011, and immediately designated them as cash flow hedges in accordance with FASB ASC Topic 815, “ Derivatives and Hedging. ” The purpose of these interest rate swap agreements was to attempt to hedge potential changes to our cash flows due to the variable interest nature of our senior term loan facilities. The total notional amount of these interest rate swap agreements was $400.0 million, $200.0 million of which expired in October 2017 and $200 million of which expired in September 2019. The ineffective portion of the change in fair value of the derivatives was recognized directly in earnings. There was no significant hedge ineffectiveness for the years ended December 31, 2019 and 2018. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges was recorded in accumulated other comprehensive loss on the consolidated balance sheets and was subsequently reclassified into earnings in the period that the hedged forecasted transaction affected earnings. We reclassified $1.2 million and $2.7 million for the years ended December 31, 2019 and 2018, respectively, from accumulated other comprehensive loss to interest expense. In addition, we recorded a net loss of $0.1 million and a net gain of $1.0 million for the years ended December 31, 2019 and 2018, respectively, to other comprehensive loss in relation to such interest rate swap agreements. On August 13, 2015, CBRE Services issued $600.0 million in aggregate principal amount of 4.875% senior notes due March 1, 2026 at a price equal to 99.24% of their face value. The 4.875% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to all of its current and future secured indebtedness. The 4.875% senior notes are jointly and severally guaranteed on a senior basis by us and each domestic subsidiary of CBRE Services that guarantees our 2019 Credit Agreement. Interest accrues at a rate of 4.875% per year and is payable semi-annually in arrears on March 1 and September 1, with the first interest payment made on March 1, 2016. The 4.875% senior notes are redeemable at our option, in whole or in part, prior to December 1, 2025 at a redemption price equal to the greater of (1) 100% of the principal amount of the 4.875% senior notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon to December 1, 2025 (not including any portions of payments of interest accrued as of the date of redemption) discounted to the date of redemption on a semi-annual basis at the Adjusted Treasury Rate (as defined in the indenture governing these notes). In addition, at any time on or after December 1, 2025, the 4.875% senior notes may be redeemed by us, in whole or in part, at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest, if any, to (but excluding) the date of redemption. If a change of control triggering event (as defined in the indenture governing these notes) occurs, we are obligated to make an offer to purchase the then outstanding 4.875% senior notes at a redemption price of 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase. The amount of the 4.875% senior notes, net of unamortized discount and unamortized debt issuance costs, included in the accompanying consolidated balance sheets was $594.5 million and $593.6 million at December 31, 2020 and 2019, respectively. On September 26, 2014, CBRE Services issued $300.0 million in aggregate principal amount of 5.25% senior notes due March 15, 2025. On December 12, 2014, CBRE Services issued an additional $125.0 million in aggregate principal amount of 5.25% senior notes due March 15, 2025 at a price equal to 101.5% of their face value, plus interest deemed to have accrued from September 26, 2014. The 5.25% senior notes were unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to all of its current and future secured indebtedness. The 5.25% senior notes were jointly and severally guaranteed on a senior basis by us and each domestic subsidiary of CBRE Services that guaranteed our 2019 Credit Agreement. Interest accrued at a rate of 5.25% per year and was payable semi-annually in arrears on March 15 and September 15. We redeemed these notes in full on December 28, 2020 and incurred charges of $75.6 million, including a premium of $73.6 million and the write-off of $2.0 million of unamortized premium and debt issuance costs. We funded this redemption using cash on hand. The amount of the 5.25% senior notes, net of unamortized premium and unamortized debt issuance costs, included in the accompanying consolidated balance sheet was $423.0 million at December 31, 2019. On March 14, 2013, CBRE Services issued $800.0 million in aggregate principal amount of 5.00% senior notes due March 15, 2023. The 5.00% senior notes were unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to all of its current and future secured indebtedness. The 5.00% senior notes were jointly and severally guaranteed on a senior basis by us and each domestic subsidiary of CBRE Services that guaranteed our 2017 Credit Agreement. Interest accrued at a rate of 5.00% per year and was payable semi-annually in arrears on March 15 and September 15. The 5.00% senior notes were redeemable at our option, in whole or in part, on March 15, 2018 at a redemption price of 102.5% of the principal amount on that date. We redeemed these notes in full on March 15, 2018 and incurred charges of $28.0 million, including a premium of $20.0 million and the write-off of $8.0 million of unamortized deferred financing costs. We funded this redemption with $550.0 million of borrowings from our tranche A term loan facility and $270.0 million of borrowings from our revolving credit facility under our 2017 Credit Agreement. The indenture governing our 4.875% senior notes contains restrictive covenants that, among other things, limit our ability to create or permit liens on assets securing indebtedness, enter into sale/leaseback transactions and enter into consolidations or mergers. In addition, our 2019 Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the 2019 Credit Agreement) to consolidated interest expense of 2.00x and a maximum leverage ratio of total debt less available cash to consolidated EBITDA (as defined in the 2019 Credit Agreement) of 4.25x (and in the case of the first four full fiscal quarters following consummation of a qualified acquisition (as defined in the 2019 Credit Agreement), 4.75x) as of the end of each fiscal quarter. On this basis, our coverage ratio of consolidated EBITDA to consolidated interest expense was 26.22x for the year ended December 31, 2020, and our leverage ratio of total debt less available cash to consolidated EBITDA was (0.17x) as of December 31, 2020. Short-Term Borrowings We had short-term borrowings of $1.4 billion and $981.7 million as of December 31, 2020 and 2019, respectively, with related weighted average interest rates of 1.7% and 3.1%, respectively, which are included in the accompanying consolidated balance sheets. Revolving Credit Facility The revolving credit facility under the 2019 Credit Agreement allows for borrowings outside of the U.S., with a $200.0 million sub-facility available to CBRE Services, one of our Canadian subsidiaries, one of our Australian subsidiaries and one of our New Zealand subsidiaries and a $300.0 million sub-facility available to CBRE Services and one of our U.K. subsidiaries. Borrowings under the revolving credit facility bear interest at varying rates, based at our option, on either (1) the applicable fixed rate plus 0.680% to 1.075% or (2) the daily rate plus 0.0% to 0.075%, in each case as determined by reference to our Credit Rating (as defined in the 2019 Credit Agreement). The 2019 Credit Agreement requires us to pay a fee based on the total amount of the revolving credit facility commitment (whether used or unused). As of December 31, 2020, no amount was outstanding under the revolving credit facility other than letters of credit totaling $2.0 million. These letters of credit, which reduce the amount we may borrow under the revolving credit facility, were primarily issued in the ordinary course of business. Warehouse Lines of Credit CBRE Capital Markets has warehouse lines of credit with third-party lenders for the purpose of funding mortgage loans that will be resold, and a funding arrangement with Fannie Mae for the purpose of selling a percentage of certain closed multifamily loans to Fannie Mae. These warehouse lines are recourse only to CBRE Capital Markets and are secured by our related warehouse receivables. See Note 5 for additional information. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in thousands): December 31, Category Classification 2020 2019 Assets Operating Operating lease assets $ 1,020,352 $ 997,966 Finance Other assets, net 117,805 94,141 Total leased assets $ 1,138,157 $ 1,092,107 Liabilities Current: Operating Operating lease liabilities $ 208,526 $ 168,663 Finance Other current liabilities 39,298 34,966 Non-current: Operating Non-current operating lease liabilities 1,116,795 1,057,758 Finance Other liabilities 78,881 60,001 Total lease liabilities $ 1,443,500 $ 1,321,388 Components of lease cost are as follows (dollars in thousands): Year Ended December 31, Component Classification 2020 2019 Operating lease cost Operating, administrative and other $ 204,415 $ 189,106 Finance lease cost: Amortization of right-of-use assets (1) 38,568 31,081 Interest on lease liabilities Interest expense 1,847 1,317 Variable lease cost (2) 74,332 74,476 Sublease income Revenue (2,643) (3,734) Total lease cost $ 316,519 $ 292,246 _______________ (1) Amortization costs of $32.7 million and $25.5 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Amortization costs of $5.9 million and $5.6 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. (2) Variable lease costs of $17.1 million and $17.5 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Variable lease costs of $55.6 million and $57.0 million from all other leases are included in the “Operating, administrative, and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows: December 31, 2020 2019 Weighted-average remaining lease term: Operating leases 8 years 9 years Finance leases (1) 71 years 3 years Weighted-average discount rate: Operating leases 3.1% 3.4% Finance leases (1) 5.0% 2.3% _______________ (1) Finance leases as of December 31, 2020 included a 99 year lease on a real estate under development. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 2.1%, respectively. Maturities of lease liabilities by fiscal year as of December 31, 2020 are as follows (dollars in thousands): Operating Finance 2021 $ 214,887 $ 64,363 2022 214,895 50,225 2023 196,987 36,852 2024 177,466 19,150 2025 161,362 4,552 Thereafter 551,661 364,101 Total remaining lease payments at December 31, 2020 1,517,258 539,243 Less: Interest 191,937 421,065 Present value of lease liabilities at December 31, 2020 $ 1,325,321 $ 118,178 Supplemental cash flow information and non-cash activity related to our operating and finance leases are as follows (dollars in thousands): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 170,317 $ 167,652 Operating cash flows from finance leases 2,077 1,559 Financing cash flows from finance leases (1) 40,304 31,006 Right-of-use assets obtained in exchange for new operating lease liabilities 177,384 168,972 Right-of-use assets obtained in exchange for new finance lease liabilities 61,218 63,041 Other non-cash (decrease) increase in operating lease right-of-use assets (2) (17,621) 47,851 Other non-cash decreases in finance lease right-of-use assets (2) (1,233) (1,826) _______________ (1) Financing cash flows from finance leases were included in “Accounts payable and accrued expenses and other liabilities (including contract and lease liabilities)” within operating cash flows for 2019 due to immateriality. Given the increase in the outflow, it is included in “Other financing activities, net” within financing cash flows for 2020 in the accompanying consolidated statements of cash flows. (2) The non-cash activity in the right-of-use assets resulted from lease modifications and remeasurements. |
Lessee, Finance Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in thousands): December 31, Category Classification 2020 2019 Assets Operating Operating lease assets $ 1,020,352 $ 997,966 Finance Other assets, net 117,805 94,141 Total leased assets $ 1,138,157 $ 1,092,107 Liabilities Current: Operating Operating lease liabilities $ 208,526 $ 168,663 Finance Other current liabilities 39,298 34,966 Non-current: Operating Non-current operating lease liabilities 1,116,795 1,057,758 Finance Other liabilities 78,881 60,001 Total lease liabilities $ 1,443,500 $ 1,321,388 Components of lease cost are as follows (dollars in thousands): Year Ended December 31, Component Classification 2020 2019 Operating lease cost Operating, administrative and other $ 204,415 $ 189,106 Finance lease cost: Amortization of right-of-use assets (1) 38,568 31,081 Interest on lease liabilities Interest expense 1,847 1,317 Variable lease cost (2) 74,332 74,476 Sublease income Revenue (2,643) (3,734) Total lease cost $ 316,519 $ 292,246 _______________ (1) Amortization costs of $32.7 million and $25.5 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Amortization costs of $5.9 million and $5.6 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. (2) Variable lease costs of $17.1 million and $17.5 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Variable lease costs of $55.6 million and $57.0 million from all other leases are included in the “Operating, administrative, and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows: December 31, 2020 2019 Weighted-average remaining lease term: Operating leases 8 years 9 years Finance leases (1) 71 years 3 years Weighted-average discount rate: Operating leases 3.1% 3.4% Finance leases (1) 5.0% 2.3% _______________ (1) Finance leases as of December 31, 2020 included a 99 year lease on a real estate under development. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 2.1%, respectively. Maturities of lease liabilities by fiscal year as of December 31, 2020 are as follows (dollars in thousands): Operating Finance 2021 $ 214,887 $ 64,363 2022 214,895 50,225 2023 196,987 36,852 2024 177,466 19,150 2025 161,362 4,552 Thereafter 551,661 364,101 Total remaining lease payments at December 31, 2020 1,517,258 539,243 Less: Interest 191,937 421,065 Present value of lease liabilities at December 31, 2020 $ 1,325,321 $ 118,178 Supplemental cash flow information and non-cash activity related to our operating and finance leases are as follows (dollars in thousands): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 170,317 $ 167,652 Operating cash flows from finance leases 2,077 1,559 Financing cash flows from finance leases (1) 40,304 31,006 Right-of-use assets obtained in exchange for new operating lease liabilities 177,384 168,972 Right-of-use assets obtained in exchange for new finance lease liabilities 61,218 63,041 Other non-cash (decrease) increase in operating lease right-of-use assets (2) (17,621) 47,851 Other non-cash decreases in finance lease right-of-use assets (2) (1,233) (1,826) _______________ (1) Financing cash flows from finance leases were included in “Accounts payable and accrued expenses and other liabilities (including contract and lease liabilities)” within operating cash flows for 2019 due to immateriality. Given the increase in the outflow, it is included in “Other financing activities, net” within financing cash flows for 2020 in the accompanying consolidated statements of cash flows. (2) The non-cash activity in the right-of-use assets resulted from lease modifications and remeasurements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are a party to a number of pending or threatened lawsuits arising out of, or incident to, our ordinary course of business. We believe that any losses in excess of the amounts accrued therefore as liabilities on our consolidated financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our consolidated financial statements if one or more matters are resolved in a particular period in an amount materially in excess of what we anticipated. In January 2008, CBRE MCI, a wholly-owned subsidiary of CBRE Capital Markets, entered into an agreement with Fannie Mae under Fannie Mae’s DUS Program to provide financing for multifamily housing with five or more units. Under the DUS Program, CBRE MCI originates, underwrites, closes and services loans without prior approval by Fannie Mae, and typically, is subject to sharing up to one-third of any losses on loans originated under the DUS Program. CBRE MCI has funded loans subject to such loss sharing arrangements with unpaid principal balances of $32.7 billion at December 31, 2020. CBRE MCI, under its agreement with Fannie Mae, must post cash reserves or other acceptable collateral under formulas established by Fannie Mae to provide for sufficient capital in the event losses occur. As of December 31, 2020 and 2019, CBRE MCI had a $95.0 million and a $72.0 million, respectively, letter of credit under this reserve arrangement, and had recorded a liability of approximately $57.1 million and $37.0 million, respectively, for its loan loss guarantee obligation under such arrangement. Fannie Mae’s recourse under the DUS Program is limited to the assets of CBRE MCI, which assets totaled approximately $1.1 billion (including $694.4 million of warehouse receivables, a substantial majority of which are pledged against warehouse lines of credit and are therefore not available to Fannie Mae) at December 31, 2020. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in the U.S. in response to the Covid-19 pandemic. The CARES Act, among other things, permits borrowers with government-backed mortgages from Government Sponsored Enterprises who are experiencing a financial hardship to obtain forbearance of their loans. For Fannie Mae loans that we service, CBRE MCI is obligated to advance (for a forbearance period up to 90 consecutive days and potentially longer) scheduled principal and interest payments to Fannie Mae, regardless of whether the borrowers actually make the payments. These advances are reimbursable by Fannie Mae after 120 days. As of December 31, 2020, total advances for principal and interest were $7.0 million, of which $5.3 million have already been reimbursed. CBRE Capital Markets participates in Freddie Mac’s Multifamily Small Balance Loan (SBL) Program. Under the SBL program, CBRE Capital Markets has certain repurchase and loss reimbursement obligations. We could potentially be obligated to repurchase any SBL loan originated by CBRE Capital Markets that remains in default for 120 days following the forbearance period, if the default occurred during the first 12 months after origination and such loan had not been earlier securitized. In addition, CBRE Capital Markets may be responsible for a loss not to exceed 10% of the original principal amount of any SBL loan that is not securitized and goes into default after the 12-month repurchase period. CBRE Capital Markets must post a cash reserve or other acceptable collateral to provide for sufficient capital in the event the obligations are triggered. As of both December 31, 2020 and 2019, CBRE Capital Markets had posted a $5.0 million letter of credit under this reserve arrangement. We had outstanding letters of credit totaling $154.5 million as of December 31, 2020, excluding letters of credit for which we have outstanding liabilities already accrued on our consolidated balance sheet related to our subsidiaries’ outstanding reserves for claims under certain insurance programs as well as letters of credit related to operating leases. The CBRE Capital Markets letters of credit totaling $100.0 million as of December 31, 2020 referred to in the preceding paragraphs represented the majority of the $154.5 million outstanding letters of credit as of such date. The remaining letters of credit are primarily executed by us in the ordinary course of business and expire at the end of each of the respective agreements. We had guarantees totaling $42.1 million as of December 31, 2020, excluding guarantees related to pension liabilities, consolidated indebtedness and other obligations for which we have outstanding liabilities already accrued on our consolidated balance sheet, and excluding guarantees related to operating leases. The $42.1 million primarily represents guarantees executed by us in the ordinary course of business, including various guarantees of management and vendor contracts in our operations overseas, which expire at the end of each of the respective agreements. In addition, as of December 31, 2020, we had issued numerous non-recourse carveout, completion and budget guarantees relating to development projects for the benefit of third parties. These guarantees are commonplace in our industry and are made by us in the ordinary course of our Real Estate Investments business. Non-recourse carveout guarantees generally require that our project-entity borrower not commit specified improper acts, with us potentially liable for all or a portion of such entity’s indebtedness or other damages suffered by the lender if those acts occur. Completion and budget guarantees generally require us to complete construction of the relevant project within a specified timeframe and/or within a specified budget, with us potentially being liable for costs to complete in excess of such timeframe or budget. While there can be no assurance, we do not expect to incur any material losses under these guarantees. An important part of the strategy for our Real Estate Investments business involves investing our capital in certain real estate investments with our clients. These co-investments generally total up to 2.0% of the equity in a particular fund. As of December 31, 2020, we had aggregate commitments of $76.5 million to fund these future co-investments. Additionally, an important part of our Real Estate Investments business strategy is to invest in unconsolidated real estate subsidiaries as a principal (in most cases co-investing with our clients). As of December 31, 2020, we had committed to fund $34.8 million of additional capital to these unconsolidated subsidiaries. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Stock Incentive Plans 2012 Equity Incentive Plan and 2017 Equity Incentive Plan Our 2012 Equity Incentive Plan (the 2012 Plan) and 2017 Equity Incentive Plan (the 2017 Plan) were adopted by our board of directors and approved by our stockholders on May 8, 2012 and May 19, 2017, respectively. Both the 2012 Plan and 2017 Plan authorized the grant of stock-based awards to our employees, directors and independent contractors. Our 2012 Plan was terminated in May 2017 in connection with the adoption of our 2017 Plan. Our 2017 Plan was terminated in May 2019 in connection with the adoption of our 2019 Equity Incentive Plan (the 2019 Plan), which is described below. At termination of the 2012 Plan, no unissued shares from the 2012 Plan were allocated to the 2017 Plan for potential future issuance. At termination of the 2017 Plan, no unissued shares from the 2017 Plan were allocated to the 2019 Plan for potential future issuance. Since our 2012 Plan and 2017 Plan have been terminated, no new awards may be granted under them. As of December 31, 2020, assuming the maximum number of shares under our performance-based awards will later be issued, 310,023 outstanding restricted stock unit (RSU) awards to acquire shares of our Class A common stock granted under the 2012 Plan remain outstanding according to their terms, and we will continue to issue shares to the extent required under the terms of such outstanding awards. Shares underlying awards that expire, terminate or lapse under the 2012 Plan will not become available for grant under the 2017 Plan or the 2019 Plan. As of December 31, 2020, 4,677,453 outstanding RSU awards to acquire shares of our Class A common stock granted under the 2017 Plan remain outstanding according to their terms, and we will continue to issue shares to the extent required under the terms of such outstanding awards (noting that any shares granted above target will get deducted from the 2019 Plan reserve as noted below). Shares underlying awards outstanding under the 2017 Plan at termination that are subsequently canceled, forfeited or terminated without issuance to the holder thereof will be available for grant under the 2019 Plan. 2019 Equity Incentive Plan Our 2019 Plan was adopted by our board of directors on March 1, 2019 and approved by our stockholders on May 17, 2019. The 2019 Plan authorizes the grant of stock-based awards to employees, directors and independent contractors. Unless terminated earlier, the 2019 Plan will terminate on March 1, 2029. A total of 9,900,000 shares of our Class A common stock are reserved for issuance under the 2019 Plan, less 189,499 shares granted under the 2017 Plan between March 1, 2019, the date our board of directors approved the plan, and May 17, 2019, the date our stockholders approved the 2019 Plan. Additionally, as mentioned above, shares underlying awards outstanding under the 2017 Plan at termination that are subsequently canceled, forfeited or terminated without issuance to the holder thereof will be available for reissuance under the 2019 Plan. As of December 31, 2020, 575,506 shares were cancelled and 215,900 shares were withheld for payment of taxes under the 2017 Plan and added to the authorized pool for the 2019 Plan, bringing the total authorized amount under the 2019 Plan to 10,501,907 shares of our Class A common stock. Shares underlying expired, canceled, forfeited or terminated awards under the 2019 Plan (other than awards granted in substitution of an award previously granted), plus those utilized to pay tax withholding obligations with respect to an award (other than an option or stock appreciation right) will be available for reissuance. Awards granted under the 2019 Plan are subject to a minimum vesting condition of one year. As of December 31, 2020, assuming the maximum number of shares under our performance-based awards will later be issued (which includes shares that could be issued over target related to performance awards issued and outstanding under the 2017 Plan), 6,265,195 shares remained available for future grants under this plan. The number of shares issued or reserved pursuant to the 2012 Plan, 2017 Plan and 2019 Plan are subject to adjustment on account of a stock split of our outstanding shares, stock dividend, dividend payable in a form other than shares in an amount that has a material effect on the price of the shares, consolidation, combination or reclassification of the shares, recapitalization, spin-off, or other similar occurrences. Non-Vested Stock Awards We have issued non-vested stock awards, including RSUs and restricted shares, in our Class A common stock to certain of our employees, independent contractors and members of our board of directors. The following is a summary of the awards granted during the years ended December 31, 2020, 2019 and 2018. • During the year ended December 31, 2020, we granted RSUs that are performance vesting in nature, with 910,346 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 1,150,761 RSUs that are time vesting in nature. • During the year ended December 31, 2019, we granted RSUs that are performance vesting in nature, with 888,726 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 1,493,788 RSUs that are time vesting in nature. • During the year ended December 31, 2018, we granted RSUs that are performance vesting in nature, with 1,014,269 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 1,332,085 RSUs that are time vesting in nature. Our annual performance-vesting awards generally vest in full three years from the grant date, based on our achievement against various adjusted income per share performance targets. Our time-vesting awards generally vest 25% per year over four years from the grant date. We made a special grant of RSUs under our 2017 Plan (Special RSU grant) to certain of our employees, with 3,288,618 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 939,605 RSUs that are time vesting in nature. During 2019 and 2018, we made grants under this Special RSU grant program to certain of our employees, with 195,907 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 55,973 RSUs that are time vesting in nature. No such grants were made during 2020. As a condition to this Special RSU grant, each participant has agreed to execute a Restrictive Covenants Agreement. Each Special RSU grant consisted of: (i) Time Vesting RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. (ii) Total Shareholder Return (TSR) Performance RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. The actual number of TSR Performance RSUs that will vest is determined by measuring our cumulative TSR against the cumulative TSR of each of the other companies comprising the S&P 500 on the Grant Date (the Comparison Group) over a six year measurement period commencing on the Grant Date and ending on December 1, 2023. For purposes of measuring TSR, the initial value of our common stock was the average closing price of such common stock for the 60 trading days immediately preceding the Grant Date and the final value of our common stock will be the average closing price of such common stock for the 60 trading days immediately preceding December 1, 2023. (iii) EPS Performance RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. The actual number of EPS Performance RSUs that will vest is determined by measuring our cumulative adjusted income per share growth against the cumulative EPS growth, as reported under GAAP (GAAP EPS), of each of the other members of the Comparison Group over a six year measurement period commencing on January 1, 2018 and ending on December 31, 2023. The Time Vesting and TSR Performance RSUs subject to the Special RSU grants vest on December 1, 2023, while the EPS Performance RSUs subject to the Special RSU grants vest on December 31, 2023. We estimated the fair value of the TSR Performance RSUs referred to above on the date of the grant using a Monte Carlo simulation with the following assumptions: Year Ended December 31, 2019 2018 Volatility of common stock 25.96 % 25.02 % Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 2.12 % 2.73 % A summary of the status of our non-vested stock awards is presented in the table below: Shares/Units Weighted Average Balance at December 31, 2017 7,677,102 $ 37.76 Granted 2,023,266 45.70 Performance award achievement adjustments 282,953 38.09 Vested (2,177,800) 34.78 Forfeited (623,161) 40.85 Balance at December 31, 2018 7,182,360 41.04 Granted 2,000,977 50.07 Performance award achievement adjustments 166,007 37.36 Vested (1,323,351) 37.43 Forfeited (316,294) 42.09 Balance at December 31, 2019 7,709,699 43.89 Granted 1,605,934 56.45 Performance award achievement adjustments 560,563 39.89 Vested (2,780,377) 39.81 Forfeited (412,407) 48.27 Balance at December 31, 2020 6,683,412 47.99 Total compensation expense related to non-vested stock awards was $60.4 million, $127.7 million and $128.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. At December 31, 2020, total unrecognized estimated compensation cost related to non-vested stock awards was approximately $121.1 million, which is expected to be recognized over a weighted average period of approximately 2.6 years. Bonuses We have bonus programs covering select employees, including senior management. Awards are based on the position and performance of the employee and the achievement of pre-established financial, operating and strategic objectives. The amounts charged to expense for bonuses were $557.6 million, $554.6 million and $595.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. 401(k) Plan Our CBRE 401(k) Plan (401(k) Plan) is a defined contribution savings plan that allows participant deferrals under Section 401(k) of the Internal Revenue Code (IRC). Most of our U.S. employees, other than qualified real estate agents having the status of independent contractors under section 3508 of the IRC of 1986, as amended, and non-plan electing union employees, are eligible to participate in the plan. The 401(k) Plan provides for participant contributions as well as a company match. A participant is allowed to contribute to the 401(k) Plan from 1% to 75% of his or her compensation, subject to limits imposed by applicable law. Effective January 1, 2007, all participants hired post January 1, 2007 vest in company match contributions 20% per year for each plan year they are employed. All participants hired before January 1, 2007 are immediately vested in company match contributions. For 2020, 2019, 2018, we contributed a 67% match on the first 6% of annual compensation for participants with an annual base salary of less than $100,000 and we contributed a 50% match on the first 6% of annual compensation for participants with an annual base salary of $100,000 or more (up to $150,000 of compensation). In connection with the 401(k) Plan, we charged to expense $83.5 million, $59.9 million and $46.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. Participants are entitled to invest up to 25% of their 401(k) account balance in shares of our common stock. As of December 31, 2020, approximately 1.2 million shares of our common stock were held as investments by participants in our 401(k) Plan. Pension Plans We have two major non-U.S. contributory defined benefit pension plans, both based in the U.K. Our subsidiaries maintain these plans to provide retirement benefits to existing and former employees participating in these plans. With respect to these plans, our historical policy has been to contribute annually to the plans, an amount to fund pension liabilities as actuarially determined and as required by applicable laws and regulations. Our contributions to these plans are invested by the plan trustee and, if these investments do not perform well in the future, we may be required to provide additional contributions to cover any pension underfunding. Effective July 1, 2007, we reached agreements with the active members of these plans to freeze future pension plan benefits. In return, the active members became eligible to enroll in a defined contribution plan. For these plans, as of December 31, 2020 and 2019, the fair values of pension plan assets were $378.9 million and $331.4 million, and the fair values of projected benefit obligations were $470.1 million and $439.4 million, respectively. As a result, these plans were underfunded by approximately $91.2 million and $108.0 million at December 31, 2020 and 2019. As of December 31, 2020, inclusive of individually immaterial plans not shown in the above table, for plans where total projected benefit obligations exceed plan assets, projected benefit obligations and the fair value of plan assets are $558.4 million and $403.5 million, respectively. As of December 31, 2019, inclusive of individually immaterial plans not shown in the above table, for plans where total projected benefit obligations exceed plan assets, projected benefit obligations and the fair value of plan assets are $509.4 million and $351.8 million, respectively. For plans where the accumulated benefit obligation exceeds plan assets, such obligations are the same as the projected benefit obligations. Items not yet recognized as a component of net periodic pension cost (benefit) for the major plans were $165.9 million and $191.6 million at December 31, 2020 and 2019, respectively, and were included in accumulated other comprehensive loss in the accompanying consolidated balance sheets. During 2020 there were losses on plan obligations of $27.7 million. These are primarily as a result of changes in assumptions resulting in a loss of $37.1 million, partially offset by $9.5 million in net gains due to plan experience. Net periodic pension (benefit) cost was not material for the years ended December 31, 2020, 2019 and 2018. The following table provides amounts recognized related to our defined benefit pension plans within the following captions on our consolidated balance sheets (dollars in thousands): December 31, 2020 2019 Other assets, net $ 58,410 $ 25,469 Other current liabilities 19,432 12,144 Other liabilities 135,440 145,432 The following table presents estimated future benefit payments over the next ten years, as of December 31, 2020. We will fund these obligations from the assets held by these plans. If the assets these plans hold are not sufficient to fund these payments, the company will fund the remaining obligations (dollars in thousands): 2021 2022 2023 2024 2025 2026 - 2030 Estimated future benefit payments for defined benefit plans $ 38,941 $ 35,804 $ 37,877 $ 39,655 $ 40,888 $ 216,678 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before provision for income taxes consisted of the following (dollars in thousands): Year Ended December 31, 2020 2019 2018 Domestic $ 470,181 $ 839,899 $ 807,590 Foreign 499,788 521,446 571,416 $ 969,969 $ 1,361,345 $ 1,379,006 Our tax provision (benefit) consisted of the following (dollars in thousands): Year Ended December 31, 2020 2019 2018 Federal: Current $ 18,951 $ (51,980) $ 166,024 Deferred 61,034 (74,432) (7,667) 79,985 (126,412) 158,357 State: Current 33,291 52,403 43,320 Deferred 3,872 (5,760) (3,692) 37,163 46,643 39,628 Foreign: Current 88,994 163,833 149,194 Deferred 7,959 (14,169) (34,121) 96,953 149,664 115,073 $ 214,101 $ 69,895 $ 313,058 The following is a reconciliation stated as a percentage of pre-tax income of the U.S. statutory federal income tax rate to our effective tax rate: Year Ended December 31, 2020 2019 2018 Federal statutory tax rate 21 % 21 % 21 % Foreign rate differential — 4 — State taxes, net of federal benefit 3 3 3 Non-deductible expenses 1 1 2 Reserves for uncertain tax positions — 1 — Credits and exemptions (2) (4) (2) Outside basis differences recognized as a result of a legal entity restructuring — (20) — Tax Reform — — 1 Change in valuation allowance — — (1) Acquisition-related costs — — (2) Other (1) (1) 1 Effective tax rate 22 % 5 % 23 % On March 18, 2020, the Families First Coronavirus Response Act (FFCR Act), and on March 27, 2020, the CARES Act were each enacted in response to the Covid-19 pandemic. The FFCR Act and the CARES Act contain numerous tax provisions, such as net operating loss carry-back periods, alternative minimum tax credit refunds, deferral of employer payroll taxes deferring payroll tax payments, establishing a credit for the retention of certain employees, relaxing limitations on the deductibility of interest, and updating the definition of qualified improvement property. This legislation currently has no material impact to income tax expense on the company’s financial statements. In the fourth quarter of 2019, we recognized a net tax benefit of approximately $277.2 million attributable to outside basis differences recognized as a result of a legal entity restructuring. The recognition of the outside tax basis differences generated a capital loss that offset capital gains generated during 2019. A portion of the capital loss was carried back to tax years 2016, 2017 and 2018 to offset capital gains in those years. The remaining capital loss was carried forward to tax years 2020 and forward to be utilized to offset capital gains in these years. Based on our strong history of capital gains in the prior three years and the nature of our business we expect to generate sufficient capital gains in the remaining four year carry forward period and therefore concluded that it is more likely than not that we will realize the full tax benefit from the capital loss carried forward. Accordingly, we have not provided any valuation allowance against the deferred tax asset for the capital loss carried forward. On December 22, 2017, the Tax Act was signed into law making significant changes to the IRC, including a decrease to the U.S. corporate tax rate from 35% to 21% and a one-time transition tax (i.e. toll charge, or the Transition Tax) on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. We recorded a provisional amount for our one-time Transition Tax liability of $158.0 million for the year ended December 31, 2017, which represented our estimate of the U.S. federal and state tax impact of the Transition Tax, partially offset by a net income tax benefit of $14.6 million related to the re-measurement of U.S. federal deferred tax assets and liabilities. Our provision for income taxes for 2018 included a net expense true-up of $13.3 million associated with the Tax Act. As required, we paid the full state tax liability for the Transition Tax in 2018. We are paying the federal tax liability for the Transition Tax in annual interest-free installments over a period of eight years through 2025 as allowed by the Tax Act. As of December 31, 2020, the company had $54.8 million remaining Transition Tax liability (including a 2019 true-up of the Transition Tax liability) payable in tax years 2023 and 2024. Cumulative tax effects of temporary differences are shown below (dollars in thousands): December 31, 2020 2019 Asset (Liability) Tax losses and tax credits $ 334,303 $ 330,839 Operating lease liabilities 358,066 320,261 Bonus and deferred compensation 295,690 280,747 Bad debt and other reserves 73,061 66,504 Pension obligation 18,026 24,022 Investments 17,506 5,236 Tax effect on revenue items related to Topic 606 adoption (16,784) (25,620) Property and equipment (88,595) (54,370) Unconsolidated affiliates and partnerships (59,544) (63,594) Capitalized costs and intangibles (313,099) (277,246) Operating lease assets (366,671) (314,433) All other 6,181 (1,153) Net deferred tax assets before valuation allowance 258,140 291,193 Valuation allowance (291,096) (251,922) Net deferred tax (liabilities) assets $ (32,956) $ 39,271 In the first quarter of 2019 we adopted new lease accounting guidance (see Note 2). As a result of such adoption, as of December 31, 2019 we recorded deferred tax assets of $320.3 million and deferred tax liabilities of $314.4 million for book tax basis differences in the operating lease liabilities and operating lease assets, respectively. As of December 31, 2020, we had a U.S. federal capital loss carryforward, net of related reserves for uncertain tax positions, of approximately $135.2 million, translating to a net deferred tax asset before valuation allowance of $28.4 million, which will expire after 2024. As of December 31, 2020, we had U.S. federal NOLs, net of related reserves for uncertain tax positions, of approximately $8.8 million, translating to a net deferred tax asset before valuation allowance of $1.8 million, which will begin to expire in 2037. As of December 31, 2020, there were also deferred tax assets before valuation allowances of approximately $300.2 million related to foreign NOLs. The foreign NOLs begin to expire in 2020, but the majority carry forward indefinitely. The utilization of NOLs may be subject to certain limitations under U.S. federal, state and foreign laws. We have recorded a full valuation allowance for deferred tax assets where we believe that it is more likely than not that the NOLs will not be fully utilized. We determined that as of December 31, 2020, $291.1 million of deferred tax assets do not satisfy the realization criteria set forth in Topic 740. Accordingly, a valuation allowance has been recorded for this amount. If released, the entire amount would result in a benefit to continuing operations. During the year ended December 31, 2020, our valuation allowance increased by approximately $39.2 million. The change in the valuation allowance was driven by an increase in the valuation allowance associated with NOLs generated by our operations in Luxembourg. We believe it is more likely than not that future operations will generate sufficient taxable income to realize the benefit of the deferred tax assets recorded net of these valuation allowances. Our foreign subsidiaries have accumulated $3.0 billion of undistributed earnings for which we have not recorded a deferred tax liability. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the Transition Tax, in connection with the enactment of the Tax Act, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. While federal and state current income tax expense have been recognized as a result of the Tax Act, we have not provided any additional deferred taxes with respect to items such as foreign withholding taxes, state income tax or foreign exchange gain or loss that would be due when cash is actually repatriated to the U.S. because those foreign earnings are considered permanently reinvested in the business or may be remitted substantially free of any additional local taxes. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings if eventually remitted is not practicable. The total amount of gross unrecognized tax benefits was approximately $168.5 million and $141.2 million as of December 31, 2020 and 2019, respectively. The total amount of unrecognized tax benefits that would affect our effective tax rate, if recognized, is $54.9 million ($52.3 million, net of federal benefit received from state positions) and $44.5 million ($42.7 million, net of federal benefit received from state positions) as of December 31, 2020 and 2019, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in thousands): Year Ended December 31, 2020 2019 Beginning balance, unrecognized tax benefits $ (141,164) $ (94,962) Gross increases - tax positions in prior period (31,070) (22,229) Gross decreases - tax positions in prior period 1,530 17,390 Gross increases - current-period tax positions (9,688) (45,262) Decreases relating to settlements — 218 Reductions as a result of lapse of statute of limitations 11,791 3,680 Foreign exchange movement 85 1 Ending balance, unrecognized tax benefits $ (168,516) $ (141,164) During the year ended December 31, 2020, we released $11.8 million of gross unrecognized tax benefits primarily due to expiration of the statute of limitations related to the 2016 tax year. As a result, we recognized $8.4 million of income tax benefits related to decreases in tax positions and $3.4 million of income tax benefits related to interest and penalties. We believe the amount of gross unrecognized tax benefits that will be settled during the next twelve months due to filing amended returns and settling ongoing exams cannot be reasonably estimated but will not be significant. Our continuing practice is to recognize potential accrued interest and/or penalties related to income tax matters within income tax expense. During the years ended December 31, 2020, 2019 and 2018, we accrued an additional $0.4 million, $0.3 million and $0.6 million, respectively, in interest and penalties associated with uncertain tax positions. As of December 31, 2020 and 2019, we have recognized a liability for interest and penalties of $1.6 million ($1.3 million, net of related federal benefit received from interest expense) and $3.8 million ($3.1 million, net of related federal benefit received from interest expense), respectively. We conduct business globally and, as a result, one or more of our subsidiaries files income tax returns in the U.S. federal jurisdiction and in multiple state, local and foreign tax jurisdictions. Our U.S. federal income tax returns for years 2016 through 2019 are currently under audit by the Internal Revenue Service. We are also under audit by various states and foreign tax jurisdictions including Canada, Korea, and the U.K. With limited exception, our significant foreign tax jurisdictions are no longer subject to audit by the various tax authorities for tax years prior to 2011. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Our board of directors is authorized, subject to any limitations imposed by law, without the approval of our stockholders, to issue a total of 25,000,000 shares of preferred stock, in one or more series, with each such series having rights and preferences including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, as our board of directors may determine. As of December 31, 2020 and 2019, no shares of preferred stock have been issued. Our board of directors is authorized to issue up to 525,000,000 shares of Class A common stock, $0.01 par value per share (common stock), of which 335,561,345 shares and 334,752,283 shares were issued and outstanding as of December 31, 2020 and 2019, respectively. Stock Repurchase Program In 2016, our board of directors authorized the company to repurchase up to an aggregate of $250.0 million of our common stock over three years. During the year ended December 31, 2019, we spent $45.1 million to repurchase 1,144,449 shares of our common stock at an average price of $39.38 per share using cash on hand. During the year ended December 31, 2018, we spent $161.0 million to repurchase 3,980,656 shares of our common stock at an average price of $40.43 per share using cash on hand. This repurchase program terminated upon the effectiveness of the new program that took effect in March 2019. In February 2019, our board of directors authorized a new program for the repurchase up to $300.0 million of our common stock over three years, effective March 11, 2019. In both August and November 2019, our board of directors authorized an additional $100.0 million under the new program, bringing the total authorized repurchase amount under the program to a total of $500.0 million. During the year ended December 31, 2020, we spent $50.0 million to repurchase 1,050,084 shares of our common stock at an average price of $47.62 per share using cash on hand. During the year ended December 31, 2019, we spent $100.0 million to repurchase 1,936,458 shares of our common stock at an average price of $51.64 per share using cash on hand. Our share repurchase program does not obligate us to acquire any specific number of shares. Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934. Our stock repurchases have been funded with cash on hand and we intend to continue funding future repurchases with existing cash. We may utilize our stock repurchase program to continue offsetting the impact of our stock-based compensation program and on a more opportunistic basis if we believe our stock presents a compelling investment compared to other discretionary uses. The timing of any future repurchases and the actual amounts repurchased will depend on a variety of factors, including the market price of our common stock, general market and economic conditions and other factors. As of December 31, 2020, we had $350.0 million of capacity remaining under our repurchase program. |
Income Per Share Information
Income Per Share Information | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Income Per Share Information | Income Per Share Information The calculations of basic and diluted income per share attributable to CBRE Group, Inc. stockholders are as follows (dollars in thousands, except share and per share data): Year Ended December 31, 2020 2019 2018 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 751,989 $ 1,282,357 $ 1,063,219 Weighted average shares outstanding for basic income per share 335,196,296 335,795,654 339,321,056 Basic income per share attributable to CBRE Group, Inc. stockholders $ 2.24 $ 3.82 $ 3.13 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 751,989 $ 1,282,357 $ 1,063,219 Weighted average shares outstanding for basic income per share 335,196,296 335,795,654 339,321,056 Dilutive effect of contingently issuable shares 3,195,914 4,727,217 3,801,293 Dilutive effect of stock options — — 392 Weighted average shares outstanding for diluted income per share 338,392,210 340,522,871 343,122,741 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 2.22 $ 3.77 $ 3.10 For the years ended December 31, 2020, 2019 and 2018, 567,589, 374,555 and 259,274, respectively, of contingently issuable shares were excluded from the computation of diluted income per share because their inclusion would have had an anti-dilutive effect. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We account for revenue with customers in accordance with Topic 606. Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those services. Disaggregated Revenue The following tables represent a disaggregation of revenue from contracts with customers by type of service and/or segment (dollars in thousands): Year Ended December 31, 2020 Advisory Global Real Estate Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 15,295,673 $ — $ 15,295,673 Advisory leasing 2,404,273 — — 2,404,273 Advisory sales 1,658,702 — — 1,658,702 Property and advisory project management 2,204,263 2,204,263 Valuation 614,307 — — 614,307 Commercial mortgage origination (1) 130,883 — — 130,883 Loan servicing (2) 45,692 — — 45,692 Investment management — — 474,939 474,939 Development services — — 341,387 341,387 Topic 606 Revenue 7,058,120 15,295,673 816,326 23,170,119 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 446,968 — — 446,968 Loan servicing 193,904 — — 193,904 Development services (3) — — 15,204 15,204 Total Out of Scope of Topic 606 Revenue 640,872 — 15,204 656,076 Total revenue $ 7,698,992 $ 15,295,673 $ 831,530 $ 23,826,195 Year Ended December 31, 2019 Advisory Global Real Estate Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 14,164,001 $ — $ 14,164,001 Advisory leasing 3,269,993 — — 3,269,993 Advisory sales 2,130,979 — — 2,130,979 Property and advisory project management 2,255,398 — — 2,255,398 Valuation 630,399 — — 630,399 Commercial mortgage origination (1) 154,227 — — 154,227 Loan servicing (2) 30,943 — — 30,943 Investment management — — 424,882 424,882 Development services — — 213,264 213,264 Topic 606 Revenue 8,471,939 14,164,001 638,146 23,274,086 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 421,736 — — 421,736 Loan servicing 175,793 — — 175,793 Development services (3) — — 22,476 22,476 Total Out of Scope of Topic 606 Revenue 597,529 — 22,476 620,005 Total revenue $ 9,069,468 $ 14,164,001 $ 660,622 $ 23,894,091 Year Ended December 31, 2018 (4) Advisory Global Real Estate Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 12,365,362 $ — $ 12,365,362 Advisory leasing 3,080,117 — — 3,080,117 Advisory sales 1,980,932 — — 1,980,932 Property and advisory project management 2,057,433 — — 2,057,433 Valuation 598,806 — — 598,806 Commercial mortgage origination (1) 136,534 — — 136,534 Loan servicing (2) 24,192 — — 24,192 Investment management — — 434,405 434,405 Development services — — 100,319 100,319 Topic 606 Revenue 7,878,014 12,365,362 534,724 20,778,100 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 402,814 — — 402,814 Loan servicing 159,174 — — 159,174 Total Out of Scope of Topic 606 Revenue 561,988 — — 561,988 Total revenue $ 8,440,002 $ 12,365,362 $ 534,724 $ 21,340,088 _______________ (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Out of scope revenue for development services represents selling profit from transfers of sales-type leases in the scope of Topic 842. (4) Our new organizational structure became effective January 1, 2019. See Note 19 for additional information. Revenue classifications for 2018 have been restated to conform to the new structure. Contract Assets and Liabilities We had contract assets totaling $471.8 million ($318.2 million of which was current) and $529.8 million ($328.0 million of which was current) as of December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, our contract assets decreased by $58.0 million, primarily due to a decrease in contract assets in our advisory business. We had contract liabilities totaling $164.1 million ($162.0 million of which was current) and $115.0 million ($108.7 million of which was current) as of December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, we recognized revenue of $80.0 million that was included in the contract liability balance at December 31, 2019. Contract Costs Within our Global Workplace Solutions segment, we incur transition costs to fulfill contracts prior to services being rendered. We capitalized $64.2 million, $69.3 million and $45.7 million, respectively, of transition costs during the years ended December 31, 2020, 2019 and 2018. We recorded amortization of transition costs of $46.9 million, $32.3 million and $23.4 million, respectively, during the years ended December 31, 2020, 2019 and 2018. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments | Segments We organize our operations around, and publicly report our financial results on, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions and (3) Real Estate Investments. Summarized financial information by segment is as follows (dollars in thousands): Year Ended December 31, 2020 2019 2018 Revenue Advisory Services $ 7,698,992 $ 9,069,468 $ 8,440,002 Global Workspace Solutions 15,295,673 14,164,001 12,365,362 Real Estate Investments 831,530 660,622 534,724 Total revenue $ 23,826,195 $ 23,894,091 $ 21,340,088 Depreciation and Amortization Advisory Services $ 348,669 $ 304,766 $ 280,921 Global Workspace Solutions 125,692 120,975 147,222 Real Estate Investments 27,367 13,483 23,845 Total depreciation and amortization $ 501,728 $ 439,224 $ 451,988 Equity Income (Loss) from Unconsolidated Subsidiaries Advisory Services $ 2,245 $ 6,894 $ 16,017 Global Workspace Solutions 368 (1,423) 115 Real Estate Investments 123,548 155,454 308,532 Total equity income from unconsolidated subsidiaries $ 126,161 $ 160,925 $ 324,664 Adjusted EBITDA Advisory Services $ 1,143,889 $ 1,465,792 $ 1,303,251 Global Workspace Solutions 516,814 424,026 345,560 Real Estate Investments 231,682 173,965 256,357 Total Adjusted EBITDA $ 1,892,385 $ 2,063,783 $ 1,905,168 Adjusted EBITDA is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to and assessing performance of each segment. EBITDA represents earnings before depreciation and amortization, asset impairments, interest expense, net of interest income, write-off of financing costs on extinguished debt, and provision for income taxes. Amounts shown for adjusted EBITDA further remove (from EBITDA) the impact of costs associated with transformation initiatives, costs associated with workforce optimization efforts, fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, costs associated with our reorganization, including cost-savings initiatives, costs incurred in connection with litigation settlement, and a one-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired. Adjusted EBITDA is calculated as follows (dollars in thousands): Year Ended December 31, 2020 2019 2018 Net income attributable to CBRE Group, Inc. $ 751,989 $ 1,282,357 $ 1,063,219 Add: Depreciation and amortization 501,728 439,224 451,988 Asset impairments 88,676 89,787 — Interest expense, net of interest income 67,753 85,754 98,685 Write-off of financing costs on extinguished debt 75,592 2,608 27,982 Provision for income taxes 214,101 69,895 313,058 EBITDA 1,699,839 1,969,625 1,954,932 Adjustments: Costs associated with transformation initiatives (1) 155,148 — — Costs associated with workforce optimization efforts (2) 37,594 — — Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in the period 11,598 9,301 — Costs incurred related to legal entity restructuring 9,362 6,899 — Integration and other costs related to acquisitions 1,756 15,292 9,124 Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue (22,912) 13,101 (5,261) Costs associated with our reorganization, including cost-savings initiatives (3) — 49,565 37,925 Costs incurred in connection with litigation settlement — — 8,868 One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired — — (100,420) Adjusted EBITDA $ 1,892,385 $ 2,063,783 $ 1,905,168 _______________ (1) During 2020, management began the implementation of certain transformation initiatives to enable the company to reduce costs, streamline operations and support future growth. The majority of expenses incurred were cash in nature and primarily related to employee separation benefits, lease termination costs and professional fees. See Note 21 for further discussion. (2) Primarily represents costs incurred related to workforce optimization initiated and executed in the second quarter of 2020 as part of management’s cost containment efforts in response to the Covid-19 pandemic. The charges are cash expenditures primarily for severance costs incurred related to this effort. Of the total costs, $7.4 million was included within the “Cost of revenue” line item and $30.2 million was included in the “Operating, administrative, and other” line item in the accompanying consolidated statements of operations for the year ended December 31, 2020. (3) Primarily represents severance costs related to headcount reductions in connection with our reorganization announced in the third quarter of 2018 that became effective January 1, 2019. Our CODM is not provided with total asset information by segment and accordingly, does not measure or allocate total assets on a segment basis. As a result, we have not disclosed any asset information by segment. Geographic Information Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Year Ended December 31, 2020 2019 2018 Revenue United States $ 13,472,013 $ 13,852,018 $ 12,264,188 United Kingdom 3,083,810 2,972,704 2,586,890 All other countries 7,270,372 7,069,369 6,489,010 Total revenue $ 23,826,195 $ 23,894,091 $ 21,340,088 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe accompanying consolidated balance sheets include loans to related parties, primarily employees other than our executive officers, of $424.2 million and $416.7 million as of December 31, 2020 and 2019, respectively. The majority of these loans represent sign-on and retention bonuses issued or assumed in connection with acquisitions and prepaid commissions as well as prepaid retention and recruitment awards issued to employees. These loans are at varying principal amounts, bear interest at rates up to 3.25% per annum and mature on various dates through 2030. |
Transformation Initiatives
Transformation Initiatives | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Transformation Initiatives | Transformation Initiatives During the third quarter of 2020, management embarked on the implementation of certain transformation initiatives to enable the company to reduce costs, streamline operations and support future growth. As part of these initiatives, we incurred the following costs, primarily in cash, for the year ended December 31, 2020 (dollars in thousands): Advisory Global Real Estate Consolidated Employee separation benefits $ 57,550 $ 31,083 $ 2,444 $ 91,077 Lease termination costs 43,225 4,586 — 47,811 Professional fees and other 13,212 2,510 538 16,260 Subtotal 113,987 38,179 2,982 155,148 Depreciation expense 14,184 166 6,342 20,692 Total $ 128,171 $ 38,345 $ 9,324 $ 175,840 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventAs described in Note 10, the company made a $50.0 million non-controlling investment in Industrious in the fourth quarter of 2020. On February 19, 2021, the company made an additional non-controlling investment in Industrious, for approximately $150.0 million in the form of primary and secondary shares, as well as shares issued in anticipation of Industrious closing on the transfer of Hana in the second quarter of 2021. Following this transaction, CBRE holds a 35% interest in Industrious. In addition, CBRE has entered into a series of agreements to acquire additional shares, whereby the company will increase its interest in Industrious from 35% to 40%. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Three Months Ended December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 (Dollars in thousands, except share and per share data) Revenue $ 6,910,501 $ 5,645,142 $ 5,381,384 $ 5,889,168 Operating income 443,896 211,408 94,165 220,290 Net income attributable to CBRE Group, Inc. 313,765 184,132 81,897 172,195 Basic income per share $ 0.94 $ 0.55 $ 0.24 $ 0.51 Weighted average shares outstanding for basic income per share 335,397,942 335,287,245 335,126,126 334,969,826 Diluted income per share $ 0.93 $ 0.55 $ 0.24 $ 0.51 Weighted average shares outstanding for diluted income per share 338,799,615 337,665,848 337,361,419 339,737,911 Three Months Ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 (Dollars in thousands, except share and per share data) Revenue $ 7,119,407 $ 5,925,101 $ 5,714,073 $ 5,135,510 Operating income 513,841 316,630 284,417 144,987 Net income attributable to CBRE Group, Inc. 637,618 256,599 223,731 164,409 Basic income per share $ 1.90 $ 0.76 $ 0.67 $ 0.49 Weighted average shares outstanding for basic income per share 334,745,003 336,203,747 336,222,471 336,020,431 Diluted income per share $ 1.87 $ 0.75 $ 0.66 $ 0.48 Weighted average shares outstanding for diluted income per share 340,333,005 341,100,182 340,508,931 340,158,399 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | CBRE GROUP, INC. SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS (Dollars in thousands) Allowance for Balance, December 31, 2017 $ 46,789 Additions: Charges to expense 19,760 Deductions: Write-offs, payments and other 6,201 Balance, December 31, 2018 60,348 Additions: Charges to expense 20,373 Deductions: Write-offs, payments and other 7,996 Balance, December 31, 2019 72,725 Additions: Charges to expense 47,240 Deductions: Write-offs, payments and other 24,432 Balance, December 31, 2020 $ 95,533 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries, which are comprised of variable interest entities in which we are the primary beneficiary and voting interest entities, in which we determined we have a controlling financial interest, under the “ Consolidations ” Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) (Topic 810). The permanent and redeemable equity attributable to non-controlling interests in subsidiaries is shown separately in the accompanying consolidated balance sheets. All significant intercompany accounts and transactions have been eliminated in consolidation. Variable Interest Entities (VIEs) We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. Our determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in the VIE. Determining which reporting entity, if any, has a controlling financial interest in a VIE is primarily a qualitative approach focused on identifying which reporting entity has both: (i) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to sell or liquidate the entity. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion continually. We consolidate any VIE of which we are the primary beneficiary and disclose significant VIEs of which we are not the primary beneficiary, if any, as well as disclose our maximum exposure to loss related to VIEs that are not consolidated (see Note 6). Voting Interest Entities (VOEs) For VOEs, we consolidate the entity if we have a controlling financial interest. We have a controlling financial interest in a VOE if: (i) for legal entities other than limited partnerships, we own a majority voting interest in the VOE or, for limited partnerships and similar entities, we own a majority of the entity’s kick-out rights through voting limited partnership interests; and (ii) non-controlling shareholders or partners do not hold substantive participating rights and no other conditions exist that would indicate that we do not control the entity. Marketable Securities and Other Investments Debt securities are classified as held to maturity when we have the positive intent and ability to hold the securities to maturity. Marketable debt securities not classified as held to maturity are classified as available for sale. Available for sale debt securities are carried at their fair value and any difference between cost and fair value is recorded as an unrealized gain or loss, net of income taxes, and is reported as accumulated other comprehensive income (loss) in the consolidated statements of equity. Premiums and discounts are recognized in interest using the effective interest method. Realized gains and losses and declines in value resulting from credit losses on available for sale debt securities have not been significant. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available for sale are included in interest income. Our investments in unconsolidated subsidiaries in which we have the ability to exercise significant influence over operating and financial policies, but do not control, or entities which are VIEs in which we are not the primary beneficiary are accounted for under the equity method in accordance with the “ Instruments - Equity Method and Joint Ventures” topic of the FASB ASC (Topic 323). We eliminate transactions with such equity method subsidiaries to the extent of our ownership in such subsidiaries. Accordingly, our share of the earnings from these equity-method basis companies is included in consolidated net income. We have elected to account for certain eligible investments at fair value in accordance with the “Financial Instruments” topic of the FASB ASC (Topic 825). For a portion of our investments in unconsolidated subsidiaries reported at fair value, we estimate fair value using the net asset value (NAV) per share (or its equivalent) our investees provide. These investments are considered investment companies, or are the equivalent of investment companies, as they carry all investments at fair value, with unrealized gains and losses resulting from changes in fair value reflected in earnings. Accordingly, we effectively carry our investments at an amount that is equivalent to our proportionate share of the net assets of each investment that would be allocated to us if each investment was liquidated at the net asset value as of the measurement date. All equity investments that do not result in consolidation and are not accounted for under the equity method are measured at fair value with changes therein reflected in net income. Equity instruments that do not have readily determinable fair values and do not qualify for using the net asset value per share practical expedient in the “Fair Value Measurements” topic of the FASB ASC (Topic 820) are measured at cost, less any impairment. Impairment Evaluation Impairment losses on investments, other than available for sale debt securities and investments otherwise measured at fair value, are recognized upon evidence of other-than-temporary losses of value. When testing for impairment on investments that are not actively traded on a public market, we generally use a discounted cash flow approach to estimate the fair value of our investments and/or look to comparable activities in the marketplace. Management’s judgment is required in developing the assumptions for the discounted cash flow approach. These assumptions include net asset values, internal rates of return, discount and capitalization rates, interest rates and financing terms, rental rates, timing of leasing activity, estimates of lease terms and related concessions, etc. When determining if impairment is other-than-temporary, we also look to the length of time and the extent to which fair value has been less than cost as well as the financial condition and near-term prospects of each investment. Based on our review, we did not record any significant other-than-temporary impairment losses during the years ended December 31, 2020, 2019 and 2018. |
Use of Estimates | Use of Estimates Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP), which require management to make estimates and assumptions about future events, including the impact Covid-19 may have on our business. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported and reported amounts of revenue and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents generally consist of cash and highly liquid investments with an original maturity of three months or less. Included in the accompanying consolidated balance sheets as of December 31, 2020 and 2019 is cash and cash equivalents of $102.9 million and $70.5 million, respectively, from consolidated funds and other entities, which are not available for general corporate use. We also manage certain cash and cash equivalents as an agent for our investment and property and facilities management clients. These amounts are not included in the accompanying consolidated balance sheets (see Fiduciary Funds discussion below). |
Restricted Cash | Restricted Cash Included in the accompanying consolidated balance sheets as of December 31, 2020 and 2019 is restricted cash of $143.1 million and $122.0 million, respectively. The balances primarily include restricted cash set aside to cover funding obligations as required by contracts executed by us in the ordinary course of business. |
Fiduciary Funds | Fiduciary Funds The accompanying consolidated balance sheets do not include the net assets of escrow, agency and fiduciary funds, which are held by us on behalf of clients and which amounted to $8.1 billion and $6.1 billion at December 31, 2020 and 2019, respectively. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to credit risk consist principally of trade receivables and interest-bearing investments. Users of real estate services account for a substantial portion of trade receivables and collateral is generally not required. The risk associated with this concentration is limited due to the large number of users and their geographic dispersion. We place substantially all of our interest-bearing investments with several major financial institutions to limit the amount of credit exposure with any one financial institution. |
Property and Equipment | Property and Equipment Property and equipment, which includes leasehold improvements, is stated at cost, net of accumulated depreciation and impairment. Depreciation and amortization of property and equipment is computed primarily using the straight-line method over estimated useful lives ranging up to 10 years. Leasehold improvements are amortized over the term of their associated leases, excluding options to renew, since such leases generally do not carry prohibitive penalties for non-renewal. We capitalize expenditures that significantly increase the life of our assets and expense the costs of maintenance and repairs. We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If this review indicates that such assets are considered to be impaired, the impairment is recognized in the period the changes occur and represents the amount by which the carrying value exceeds the fair value of the asset. Certain costs related to the development or purchase of internal-use software are capitalized. Internal-use software costs that are incurred in the preliminary project stage are expensed as incurred. Significant direct consulting costs and certain payroll and related costs, which are incurred during the development stage of a project are generally capitalized and amortized over a three-year period (except for enterprise software development platforms, which range from three to seven years) when placed into production. |
Real Estate | Real Estate Classification and Impairment Evaluation We classify real estate in accordance with the criteria of the “ Property, Plant and Equipment ” Topic of the FASB ASC (Topic 360) as follows: (i) real estate held for sale, which includes completed assets or land for sale in its present condition that meet all of Topic 360’s “held for sale” criteria; (ii) real estate under development (current), which includes real estate that we are in the process of developing that is expected to be completed and disposed of within one year of the balance sheet date; (iii) real estate under development (non-current), which includes real estate that we are in the process of developing that is expected to be completed and disposed of more than one year from the balance sheet date; or (iv) real estate held for investment, which consists of land on which development activities have not yet commenced and completed assets or land held for disposition that do not meet the “held for sale” criteria. Any asset reclassified from real estate held for sale to real estate under development (current or non-current) or real estate held for investment is recorded individually at the lower of its fair value at the date of the reclassification or its carrying amount before it was classified as “held for sale,” adjusted (in the case of real estate held for investment) for any depreciation that would have been recognized had the asset been continuously classified as real estate held for investment. Real estate held for sale is recorded at the lower of cost or fair value less cost to sell. If an asset’s fair value less cost to sell, based on discounted future cash flows, management estimates or market comparisons, is less than its carrying amount, an allowance is recorded against the asset. Real estate under development and real estate held for investment are carried at cost less depreciation and impairment, as applicable. Buildings and improvements included in real estate held for investment are depreciated using the straight-line method over estimated useful lives, generally up to 39 years. Tenant improvements included in real estate held for investment are amortized using the straight-line method over the shorter of their estimated useful lives or terms of the respective leases. Land improvements included in real estate held for investment are depreciated over their estimated useful lives, up to 15 years. Real estate under development and real estate held for investment are evaluated for impairment and losses are recorded when undiscounted cash flows estimated to be generated by an asset are less than the asset’s carrying amount. The amount of the impairment loss, if any, is calculated as the excess of the asset’s carrying value over its fair value, which is determined using a discounted cash flow analysis, management estimates or market comparisons. A summary of our real estate assets is as follows (dollars in thousands): December 31, 2020 2019 Real estate under development, current (included in other current assets) $ 55,072 $ 14,757 Real estate and other assets held for sale (included in other current assets) 3,710 5,066 Real estate under development 277,630 185,508 Real estate held for investment (included in other assets, net) 3,795 8,101 Total real estate $ 340,207 $ 213,432 Cost Capitalization and Allocation When acquiring, developing and constructing real estate assets, we capitalize recoverable costs. Capitalization begins when the activities related to development have begun and ceases when activities are substantially complete and the asset is available for occupancy. Recoverable costs capitalized include pursuit costs, or pre-acquisition/pre-construction costs, taxes and insurance, interest, development and construction costs and costs of incidental operations. We do not capitalize any internal costs when acquiring, developing and constructing real estate assets. We expense transaction costs for acquisitions that qualify as a business in accordance with the “ Business Combinations ” Topic of the FASB ASC (Topic 805). Pursuit costs capitalized in connection with a potential development project that we have determined not to pursue are written off in the period that determination is made. At times, we purchase bulk land that we intend to sell or develop in phases. The land basis allocated to each phase is based on the relative estimated fair value of the phases before construction. We allocate construction costs incurred relating to more than one phase between the various phases; if the costs cannot be specifically attributed to a certain phase or the improvements benefit more than one phase, we allocate the costs between the phases based on their relative estimated sales values, where practicable, or other value methods as appropriate under the circumstances. Relative allocations of the costs are revised as the sales value estimates are revised. When acquiring real estate with existing buildings, we allocate the purchase price between land, land improvements, building and intangibles related to in-place leases, if any, based on their relative fair values. The fair values of acquired land and buildings are determined based on an estimated discounted future cash flow model with lease-up assumptions as if the building was vacant upon acquisition. The fair value of in-place leases includes the value of lease intangibles for above or below-market rents and tenant origination costs, determined on a lease by lease basis. The capitalized values for both lease intangibles and tenant origination costs are amortized over the term of the underlying leases. Amortization related to lease intangibles is recorded as either an increase to or a reduction of rental income and amortization for tenant origination costs is recorded to amortization expense. Disposition of Real Estate We account for gains and losses on the sale of real estate and other nonfinancial assets or in substance n onfinancial assets to noncustomers that are not a output of our ordinary activities and are not a business in accordance with Topic 610-20, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets.” Where we do not have a controlling financial interest in the entity that holds the transferred assets after the transaction, we derecognize the assets or in substance nonfinancial assets and recognize a gain or loss when control of the underlying assets transfer to the counterparty. We may also dispose of real estate through the transfer of a long-term leasehold representing a major part of the remaining economic life of the property. We account for these transfers as sales-type leases in accordance with the “ Lease s” Topic of the FASB ASC (Topic 842) by derecognizing the carrying amount of the underlying asset, recognizing any net investment in the lease and recognizing selling profit or loss in net income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Our acquisitions require the application of purchase accounting, which results in tangible and identifiable intangible assets and liabilities of the acquired entity being recorded at fair value. The difference between the purchase price and the fair value of net assets acquired is recorded as goodwill. The majority of our goodwill balance has resulted from our acquisition of CBRE Services, Inc. (CBRE Services) in 2001 (the 2001 Acquisition), our acquisition of Insignia Financial Group, Inc. (Insignia) in 2003 (the Insignia Acquisition), our acquisition of the Trammell Crow Company in 2006 (the Trammell Crow Company Acquisition), our acquisition of substantially all of the ING Group N.V. (ING) Real Estate Investment Management (REIM) operations in Europe and Asia, as well as substantially all of Clarion Real Estate Securities (CRES) in 2011 (collectively referred to as the REIM Acquisitions), our acquisition of Norland Managed Services Ltd (Norland) in 2013 (the Norland Acquisition), our acquisition of Johnson Controls, Inc. (JCI)’s Global Workplace Solutions (JCI-GWS) business in 2015, our acquisition of FacilitySource Holdings, LLC (FacilitySource) in 2018 and our acquisition of Telford Homes Plc (Telford) on October 1, 2019. Other intangible assets that have indefinite estimated useful lives that are not being amortized include certain management contracts identified in the REIM Acquisitions, a trademark, which was separately identified as a result of the 2001 Acquisition, as well as a trade name separately identified as a result of the REIM Acquisitions. The remaining other intangible assets primarily include customer relationships, mortgage servicing rights and trade names/trademarks, which are all being amortized over estimated useful lives ranging up to 20 years. We are required to test goodwill and other intangible assets deemed to have indefinite useful lives for impairment at least annually, or more often if circumstances or events indicate a change in the impairment status, in accordance with FASB ASC Topic 350, “ Intangibles – Goodwill and Other. ” ASC paragraphs 350-20-35-3 through 35-3B permit, but do not require an entity to perform a qualitative assessment with respect to any of its reporting units to determine whether a quantitative impairment test is needed. Entities are permitted to assess based on qualitative factors whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the quantitative goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity conducts the quantitative goodwill impairment test. If not, the entity does not need to apply the quantitative test. The qualitative test is elective and an entity can go directly to the quantitative test rather than making a more-likely-than-not assessment based on an evaluation of qualitative factors. When performing a quantitative test, we use a discounted cash flow approach to estimate the fair value of our reporting units. Management’s judgment is required in developing the assumptions for the discounted cash flow model. These assumptions include revenue growth rates, profit margin percentages, discount rates, etc. |
Leases | Leases We are the lessee in contracts for our office space tenancies, for leased vehicles and for our indirect wholly-owned subsidiary CBRE Hana, LLC (Hana). We monitor our service arrangements to evaluate whether they meet the definition of a lease. Effective January 1, 2019, we adopted the guidance in Leases (Topic 842) using the optional transitional method associated with no adjustment to comparative financial statements presented for prior periods. We elected certain practical expedients, including the package of transition practical expedients and the practical expedient to forego separating lease and non-lease components in our lease contracts. As a result of the adoption of Topic 842, the consolidated balance sheet as of January 1, 2019 included $1.2 billion of additional lease liabilities, along with corresponding right-of-use assets of $1.0 billion, reflecting adjustments for items such as prepaid and deferred rent, unamortized initial direct costs, and unamortized lease incentive balances. The adoption of the leasing guidance did not have a material impact on our consolidated statement of operations. The present value of lease payments, which are either fixed payments, in-substance fixed payments, or variable payments tied to an index or rate are recognized on the consolidated balance sheet with corresponding lease liabilities and right-of-use assets upon the commencement of the lease. These lease costs are expensed over the respective lease term in accordance with the classification of the lease (i.e., operating versus finance classification). Variable lease payments not tied to an index or rate are expensed as incurred and are not subject to capitalization. The base terms for our lease arrangements typically do not extend beyond 10 years. We commonly have renewal options in our leases, but most of these options do not create a significant economic incentive for us to extend the lease term. Therefore, payments during periods covered by these renewal options are typically not included in our lease liabilities and right-of-use assets. Specific to our vehicle leases, early termination options are common and economic penalties associated with early termination of these contracts are typically significant enough to make it reasonably certain that we will not exercise such options. Therefore, payments during periods covered by these early termination options in vehicle leases are typically included in our lease liabilities and right-of-use assets. As an accounting policy election, our short-term leases with an initial term of 12 months or less are not recognized as lease liabilities and right-of-use assets in the consolidated balance sheets. The rent expense associated with short term leases is recognized on a straight-line basis over the lease term and was not significant. Most of our office space leases include variable payments based on our share of actual common area maintenance and operating costs of the leased property. Many of our vehicle leases include variable payments based on actual service and fuel costs. For both office space and vehicle leases, we have elected the practical expedient to not separate lease components from non-lease components. Therefore, these costs are classified as variable lease payments. Lease payments are typically discounted at our incremental borrowing rate because the interest rate implicit in the lease cannot be readily determined in the absence of key inputs which are typically not reported by our lessors. Because we do not generally borrow on a collateralized basis, judgement was used to estimate the secured borrowing rate associated with our leases based on relevant market data and our inputs applied to accepted valuation methodologies. The incremental borrowing rate calculated for each lease also reflects the lease term, currency, and geography specific to each lease. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred in connection with financing activities are generally deferred and amortized over the terms of the related debt agreements ranging up to ten years. Debt issuance costs related to a recognized debt liability are presented in the accompanying consolidated balance sheets as a direct deduction from the carrying amount of that debt liability. Amortization of these costs is charged to interest expense in the accompanying consolidated statements of operations. Accounting Standards Update (ASU) 2015-15, “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” |
Revenue Recognition | Revenue Recognition We account for revenue with customers in accordance with FASB ASC Topic, “ Revenue from Contracts with Customers ” (Topic 606). Topic 606 also includes Subtopic 340-40, “ Other Assets and Deferred Costs – Contracts with Customers ,” which requires deferral of incremental costs to obtain and fulfill a contract with a customer. We adopted the new revenue recognition guidance on January 1, 2018, using the full retrospective method. Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The following is a description of principal activities – separated by reportable segments – from which we generate revenue. For more detailed information about our reportable segments, see Notes 18 and 19. Advisory Services Our Advisory Services segment provides a comprehensive range of services globally, including property leasing, property sales, mortgage services, property management, project management services and valuation services. Property Leasing and Property Sales We provide strategic advice and execution for owners, investors, and occupiers of real estate in connection with the leasing of office, industrial and retail space. We also offer clients fully integrated property sales services under the CBRE Capital Markets brand. We are compensated for our services in the form of a commission and, in some instances may earn various forms of variable incentive consideration. Our commission is paid upon the occurrence of certain contractual event(s) which may be contingent. For example, a portion of our leasing commission may be paid upon signing of the lease by the tenant, with the remaining paid upon occurrence of another future contingent event (e.g. payment of first month’s rent or tenant move-in). For leases, we typically satisfy our performance obligation at a point in time when control is transferred; generally, at the time of the first contractual event where there is a present right to payment. We look to history, experience with a customer, and deal specific considerations as part of the most likely outcome estimation approach to support our judgement that the second contingency (if applicable) will be met. Therefore, we typically accelerate the recognition of the revenue associated with the second contingent event. For sales, our commission is typically paid at the closing of the sale, which represents transfer of control for services to the customer. In addition to our commission, we may recognize other forms of variable consideration which can include, but are not limited to, commissions subject to concession or claw back and volume based discounts or rebates. We assess variable consideration on a contract by contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. We recognize variable consideration if it is deemed probable that there will not be significant reversal in the future. Mortgage Originations and Loan Sales We offer clients commercial mortgage and structured financing services. Fees from services within our mortgage brokerage business that are in the scope of Topic 606 include fees earned for the brokering of commercial mortgage loans primarily through relationships established with investment banking firms, national and regional banks, credit companies, insurance companies and pension funds. We are compensated for our brokerage services via a fee paid upon successful placement of a commercial mortgage borrower with a lender who will provide financing. The fee earned is contingent upon the funding of the loan, which represents the transfer of control for services to the customer. Therefore, we typically satisfy our performance obligation at the point in time of the funding of the loan. We also earn fees from the origination and sale of commercial mortgage loans for which the company retains the servicing rights. These fees are governed by the “ Fair Value Measurements and Disclosures ” topic (Topic 820) and “ Transfers and Servicing ” topic (Topic 860) of the FASB ASC. Upon origination of a mortgage loan held for sale, the fair value of the mortgage servicing rights (MSR) to be retained is included in the forecasted proceeds from the anticipated loan sale and results in a net gain (which is reflected in revenue). Upon sale, we record a servicing asset or liability based on the fair value of the retained MSR associated with the transferred loan. Subsequent to the initial recording, MSRs are amortized and carried at the lower of amortized cost or fair value in other intangible assets in the accompanying consolidated balance sheets. They are amortized in proportion to and over the estimated period that the servicing income is expected to be received. Property Management and Project Management Services We provide property management services on a contractual basis for owners of and investors in office, industrial and retail properties. These services include construction management, marketing, building engineering, accounting and financial services. We are compensated for our services through a monthly management fee earned based on either a specified percentage of the monthly rental income, rental receipts generated from the property under management or a fixed fee. We are also often reimbursed for our administrative and payroll costs directly attributable to the properties under management. Property management services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees associated with the services performed. The amount of revenue recognized is presented gross for any services provided by our employees, as we control them. We generally do not control third-party services delivered to property management clients. As such, we generally report revenues net of third-party reimbursements. Project management services are often provided on a portfolio wide or programmatic basis. Revenues from project management services generally include fixed management fees, variable fees, and incentive fees if certain agreed-upon performance targets are met. Revenues from project management may also include reimbursement of payroll and related costs for personnel providing the services and subcontracted vendor costs. Project management services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is typically recognized at the end of each period for the fees associated with the services performed. The amount of revenue recognized is presented gross for any services provided by our employees, as we control them. This is evidenced by our obligation for their performance and our ability to direct and redirect their work, as well as negotiate the value of such services. The amount of revenue recognized related to certain project management arrangements is presented gross (with offsetting expense recorded in cost of revenue) for reimbursements of costs of third-party services because we control those services that are delivered to the client. In the instances where we do not control third-party services delivered to the client, we report revenues net of the third-party reimbursements. In addition to our management fee, we receive various types of variable consideration which can include, but is not limited to; key performance indicator bonuses or penalties which may be linked to subcontractor performance, gross maximum price, glidepaths, savings guarantees, shared savings, or fixed fee structures. We assess variable consideration on a contract by contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. Using management assessment, historical results and statistics, we recognize revenue if it is deemed probable there will not be significant reversal in the future. Valuation Services We provide valuation services that include market-value appraisals, litigation support, discounted cash flow analyses, feasibility studies as well as consulting services such as property condition reports, hotel advisory and environmental consulting. We are compensated for valuation services in the form of a fee, which is payable on the occurrence of certain events (e.g., a portion on the delivery of a draft report with the remaining on the delivery of the final report). For consulting services, we may be paid based on the occurrence of time or event-based milestones (such as the delivery of draft reports). We typically satisfy our performance obligation for valuation services as services are rendered over time. Global Workplace Solutions Our Global Workplace Solutions segment provides a broad suite of integrated, contractually-based outsourcing services globally for occupiers of real estate, including facilities management, project management and transaction services (leasing and sales). Facilities Management and Project Management Services Facilities management involves the day-to-day management of client-occupied space and includes headquarter buildings, regional offices, administrative offices, data centers and other critical facilities, manufacturing and laboratory facilities, distribution facilities and retail space. Contracts for facilities management services are often structured so we are reimbursed for client-dedicated personnel costs and subcontracted vendor costs as well as associated overhead expenses plus a monthly fee, and, in some cases, annual incentives tied to agreed-upon performance targets, with any penalties typically capped. In addition, we have contracts for facilities management services based on fixed fees or guaranteed maximum prices. Fixed fee contracts are typically structured where an agreed upon scope of work is delivered for a fixed price while guaranteed maximum price contracts are structured with an agreed upon scope of work that will be provided to the client for a not to exceed price. Facilities management services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is typically recognized at the end of each period for the fees associated with the services performed. Project management services are often provided on a portfolio wide or programmatic basis. Revenues from project management services generally include fixed management fees, variable fees, and incentive fees if certain agreed-upon performance targets are met. Revenues from project management may also include reimbursement of payroll and related costs for personnel providing the services and subcontracted vendor costs. Project management services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is typically recognized at the end of each period for the fees associated with the services performed. The amount of revenue recognized is presented gross for any services provided by our employees, as we control them. This is evidenced by our obligation for their performance and our ability to direct and redirect their work, as well as negotiate the value of such services. The amount of revenue recognized related to the majority of facilities management contracts and certain project management arrangements is presented gross (with offsetting expense recorded in cost of revenue) for reimbursements of costs of third-party services because we control those services that are delivered to the client. In the instances when we do not control third-party services delivered to the client, we report revenues net of the third-party reimbursements. In addition to our management fee, we receive various types of variable consideration which can include, but is not limited to; key performance indicator bonuses or penalties which may be linked to subcontractor performance, gross maximum price, glidepaths, savings guarantees, shared savings, or fixed fee structures. We assess variable consideration on a contract by contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. Using management assessment and historical results and statistics, we recognize revenue if it is deemed probable there will not be significant reversal in the future. Transaction Services We provide strategic advice and execution for occupiers of real estate in connection with the leasing, sale or acquisition of office, industrial and retail space. Within the Global Workplace Solutions business, transaction services are performed for account-based clients, often as a key part of an integrated suite of commercial real estate services (with leasing being the most meaningful revenue stream included in our Global Workplace Solutions revenue). Similar to the transaction services (leasing sale or acquisition of space) we perform in our Advisory Services segment, we are compensated for our services in the form of a commission whereby a portion of our leasing commission may be paid upon signing of the lease by the client, with the remaining paid upon occurrence of another future contingent event. We typically satisfy our performance obligation at a point in time when control is transferred; generally, at the time of the first contractual event where there is a present right to payment. We look to history, experience with a customer, and deal specific considerations as part of the most likely outcome estimation approach to support our judgement that the second contingency (if applicable) will be met. Therefore, we typically accelerate the recognition of the revenue associated with the second contingent event. Real Estate Investments Our Real Estate Investments segment is comprised of investment management services provided globally; development services in the U.S. and United Kingdom (U.K.) and a service designed to help property occupiers and owners meet the growing demand for flexible office space solutions on a global basis. Investment Management Services Our investment management services are provided to pension funds, insurance companies, sovereign wealth funds, foundations, endowments and other institutional investors seeking to generate returns and diversification through investment in real assets. We sponsor investment programs that span the risk/return spectrum in: North America, Europe, Asia and Australia. We are typically compensated in the form of a base management fee, disposition fees, acquisition fees and incentive fees in the form of performance fees or carried interest based on fund type (open or closed ended, respectively). For the base management fee, we typically satisfy the performance obligation as service is rendered over time pursuant to the series guidance. Consistent with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees associated with the services performed. For acquisition and disposition services, we typically satisfy the performance obligation at a point in time (at acquisition or upon disposition). For contracts with contingent fees, including performance fees, incentive fees and carried interest, we assess variable consideration on a contract by contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. Revenue associated with performance fees and carried interest are typically constrained due to volatility in the real estate market, a broad range of possible outcomes, and other factors in the market that are outside of our control. Development Services Our development services consist of real estate development and investment activities in the U.S. to users of and investors in commercial real estate, as well as for our own account. In addition, with our recent acquisition of Telford Homes, we also develop residential-led, mixed-use sites in locations across London. We pursue opportunistic, risk-mitigated development and investment in commercial real estate across a wide spectrum of property types, including: industrial, office and retail properties; healthcare facilities of all types (medical office buildings, hospitals and ambulatory surgery centers); and residential/mixed-use projects. We pursue development and investment activity on behalf of our clients on a fee basis with no, or limited, ownership interest in a property, in partnership with our clients through co-investment – either on an individual project basis or through programs with certain strategic capital partners or for our own account with 100% ownership. Development services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees associated with the services performed. Fees are typically payable monthly over the service term or upon contractual defined events, like project milestones. In addition to development fee revenue, we receive various types of variable consideration which can include, but is not limited to, contingent lease-up bonuses, cost saving incentives, profit sharing on sales and at-risk fees. We assess variable consideration on a contract by contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. We accelerate revenue if it is deemed probable there will not be significant reversal in the future. Sales of real estate to customers which are considered an output of ordinary activities are recognized as revenue when or as control of the assets are transferred to the customer. Flexible-Space Solutions Flexible-space solutions operations are conducted through our indirect wholly-owned subsidiary, Hana. Hana develops and operates integrated, scalable, flexible workspaces, which contain office suites, conference rooms and event space and communal co-working space. Hana helps institutional property owners meet the rapidly growing demand from real estate occupiers for flexible office space solutions. Member services represent a series of distinct daily services rendered over time. Revenue is recognized at the end of each period for the fees associated with the services performed. Remaining Performance Obligations Remaining performance obligations represent the aggregate transaction prices for contracts where our performance obligations have not yet been satisfied. As of December 31, 2020, the aggregate amount of transaction price allocated to remaining performance obligations in our property leasing business was not significant. We apply the practical expedient related to remaining performance obligations that are part of a contract that has an original expected duration of one year or less and the practical expedient related to variable consideration from remaining performance obligations pursuant to the series guidance. All of our remaining performance obligations apply to one of these practical expedients. Contract Assets and Contract Liabilities Contract assets represent assets for revenue that has been recognized in advance of billing the customer and for which the right to bill is contingent upon something other than the passage of time. This is common for contingent portions of commissions in brokerage, development and construction revenue in development services and incentive fees present in various businesses. Billing requirements vary by contract but are generally structured around fixed monthly fees, reimbursement of employee and other third-party costs, and the achievement or completion of certain contingent events. When we receive consideration, or such consideration is unconditionally due, from a customer prior to transferring services to the customer under the terms of the services contract, we record deferred revenue, which represents a contract liability. We recognize the contract liability as revenue once we have transferred control of service to the customer and all revenue recognition criteria are met. Contract assets and contract liabilities are determined for each contract on a net basis. For contract assets, we classify the short-term portion as a separate line item within current assets and the long-term portion within other assets, long-term in the accompanying consolidated balance sheets. For contract liabilities, we classify the short-term portion as a separate line item within current liabilities and the long-term portion within other liabilities, long-term in the accompanying consolidated balance sheets. Contract Costs Contract costs primarily consist of upfront costs incurred to obtain or to fulfill a contract. These costs are typically found within our Global Workplace Solutions segment. Such costs relate to transition costs to fulfill contracts prior to services being rendered and are included within other intangible assets in the accompanying consolidated balance sheets. Capitalized transition costs are amortized based on the transfer of services to which the assets relate which can vary on a contract by contract basis, and are included in cost of revenue in the accompanying consolidated statement of operations. For contract costs that are recognized as assets, we periodically review for impairment. Applying the contract cost practical expedient, we recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. |
Accounts Receivable | Accounts Receivable and Allowance for Doubtful Accounts We record accounts receivable for our unconditional rights to consideration arising from our performance under contracts with customers. The carrying value of such receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value. We estimate our allowance for doubtful accounts for specific accounts receivable balances based on historical collection trends, the age of outstanding accounts receivables and existing economic conditions associated with the receivables. Past-due accounts receivable balances are written off when our internal collection efforts have been unsuccessful. As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised service to a customer and when the customer pays for that service will be one year or less. We do not typically include extended payment terms in our contracts with customers. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy | Accounts Receivable and Allowance for Doubtful Accounts We record accounts receivable for our unconditional rights to consideration arising from our performance under contracts with customers. The carrying value of such receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value. We estimate our allowance for doubtful accounts for specific accounts receivable balances based on historical collection trends, the age of outstanding accounts receivables and existing economic conditions associated with the receivables. Past-due accounts receivable balances are written off when our internal collection efforts have been unsuccessful. As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised service to a customer and when the customer pays for that service will be one year or less. We do not typically include extended payment terms in our contracts with customers. |
Business Promotion and Advertising Costs | Business Promotion and Advertising CostsThe costs of business promotion and advertising are expensed as incurred. |
Foreign Currencies | Foreign Currencies The financial statements of subsidiaries located outside the U.S. are generally measured using the local currency as the functional currency. The assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date, and income and expenses are translated at the average monthly rate. The resulting translation adjustments are included in the accumulated other comprehensive loss component of equity. Gains and losses resulting from foreign currency transactions are included in the results of operations. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive (loss) income. In the accompanying consolidated balance sheets, accumulated other comprehensive loss primarily consists of foreign currency translation adjustments, fees associated with the termination of interest rate swaps, unrealized gains (losses) on interest rate swaps, unrealized holding (losses) gains on available for sale debt securities and pension liability adjustments. Foreign currency translation adjustments exclude any income tax effect given that earnings of non-U.S. subsidiaries are deemed to be reinvested for an indefinite period of time (see Note 15). |
Warehouse Receivables | Warehouse ReceivablesOur wholly-owned subsidiary CBRE Capital Markets, Inc. (CBRE Capital Markets) is a Federal Home Loan Mortgage Corporation (Freddie Mac) approved Multifamily Program Plus Seller/Servicer and an approved Federal National Mortgage Association (Fannie Mae) Aggregation and Negotiated Transaction Seller/Servicer. In addition, CBRE Capital Markets’ wholly-owned subsidiary CBRE Multifamily Capital, Inc. (CBRE MCI) is an approved Fannie Mae Delegated Underwriting and Servicing (DUS) Seller/Servicer and CBRE Capital Markets’ wholly-owned subsidiary CBRE HMF, Inc. (CBRE HMF) is a U.S. Department of Housing and Urban Development (HUD) approved Non-Supervised Federal Housing Authority (FHA) Title II Mortgagee, an approved Multifamily Accelerated Processing (MAP) lender and an approved Government National Mortgage Association (Ginnie Mae) issuer of mortgage-backed securities (MBS). Under these arrangements, before loans are originated through proceeds from warehouse lines of credit, we obtain either a contractual loan purchase commitment from either Freddie Mac or Fannie Mae or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS that will be secured by the loans. The warehouse lines of credit are generally repaid within a one-month period when Freddie Mac or Fannie Mae buys the loans or upon settlement of the Fannie Mae or Ginnie Mae MBS, while we retain the servicing rights. Loans are funded at the prevailing market rates. We elect the fair value option for all warehouse receivables. |
Mortgage Servicing Rights | Mortgage Servicing Rights (MSRs) In connection with the origination and sale of mortgage loans with servicing rights retained, we record servicing assets or liabilities based on the fair value of the mortgage servicing rights on the date the loans are sold. Our MSRs are initially recorded at fair value. Subsequent to the initial recording, MSRs are amortized and carried at the lower of amortized cost or fair value in other intangible assets in the accompanying consolidated balance sheets. They are amortized in proportion to and over the estimated period that net servicing income is expected to be received based on projections and timing of estimated future net cash flows. Our initial recording of MSRs at their fair value resulted in net gains, as the fair value of servicing contracts that result in MSR assets exceeded the fair value of servicing contracts that result in MSR liabilities. The net assets and net gains are presented in the accompanying consolidated financial statements. The amount of MSRs recognized during the years ended December 31, 2020 and 2019 was as follows (dollars in thousands): Year Ended December 31, 2020 2019 Beginning balance, mortgage servicing rights $ 483,492 $ 424,470 Mortgage servicing rights recognized 207,827 182,443 Mortgage servicing rights sold (122) — Amortization expense (134,266) (123,008) Other — (413) Ending balance, mortgage servicing rights $ 556,931 $ 483,492 MSRs do not actively trade in an open market with readily available observable prices; therefore, fair value is determined based on certain assumptions and judgments, including the estimation of the present value of future cash flows realized from servicing the underlying mortgage loans. Management’s assumptions include the benefits of servicing (servicing fee income and interest on escrow deposits), inflation, the cost of servicing, prepayment rates, delinquencies, discount rates and the estimated life of servicing cash flows. The assumptions used are subject to change based on management’s judgments and estimates of changes in future cash flows and interest rates, among other things. The key assumptions used during the years ended December 31, 2020, 2019 and 2018 in measuring fair value were as follows: Year Ended December 31, 2020 2019 2018 Discount rate 11.73 % 10.12 % 10.00 % Conditional prepayment rate 9.80 % 10.34 % 8.89 % |
Accounting for Broker Draws | Accounting for Broker Draws As part of our recruitment efforts relative to new U.S. brokers, we offer a transitional broker draw arrangement. Our broker draw arrangements generally last until such time as a broker’s pipeline of business is sufficient to allow him or her to earn sustainable commissions. This program is intended to provide the broker with a minimal amount of cash flow to allow adequate time for his or her training as well as time for him or her to develop business relationships. Similar to traditional salaries, the broker draws are paid irrespective of the actual revenues generated by the broker. Often these broker draws represent the only form of compensation received by the broker. Furthermore, it is not our general policy to pursue collection of unearned broker draws paid under this arrangement. As a result, we have concluded that broker draws are economically equivalent to salaries paid and accordingly charge them to compensation expense as incurred. The broker is also entitled to earn a commission on completed revenue transactions. This amount is calculated as the commission that would have been payable under our full commission program, less any amounts previously paid to the broker in the form of a draw. |
Stock-Based Compensation | Stock-Based Compensation We account for all employee awards under the fair value recognition provisions of the “ Compensation – Stock Compensation ” Topic of the FASB ASC (Topic 718). Topic 718 requires the measurement of compensation cost at the grant date, based upon the estimated fair value of the award, and requires amortization of the related expense over the employee’s requisite service period. We do not estimate forfeitures, but instead recognize forfeitures when they occur. See Note 14 for additional information on our stock-based compensation plans. |
Income Per Share | Income Per Share Basic income per share attributable to CBRE Group, Inc. is computed by dividing net income attributable to CBRE Group, Inc. stockholders by the weighted average number of common shares outstanding during each period. The computation of diluted income per share attributable to CBRE Group, Inc. generally further assumes the dilutive effect of potential common shares, which include stock options and certain contingently issuable shares. Contingently issuable shares consist of non-vested stock awards. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method in accordance with the “ Accounting for Income Taxes ” Topic of the FASB ASC (Topic 740). Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax basis of assets and liabilities and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured by applying enacted tax rates and laws and are released in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates there is more than a 50% likelihood that the position will be sustained upon examination, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Tax Cuts and Jobs Act (the Tax Act) includes provisions for Global Intangible Low-Taxed Income (GILTI) wherein taxes on foreign earnings are imposed for more than a deemed return on tangible assets of foreign corporations. An accounting policy election allows to either: (i) account for GILTI as a component of tax expense in the period in which we are subject to the rules (the “period cost method”) or (ii) account for GILTI in our measurement of deferred taxes (the “deferred method”). During 2018, as a result of completing our analysis of the Tax Act, we made an accounting policy election to account for GILTI using the period cost method. See Note 15 for additional information on income taxes. |
Self-Insurance | Self-Insurance Our wholly-owned captive insurance company, which is subject to applicable insurance rules and regulations, insures our exposure related to workers’ compensation insurance, general liability insurance and automotive insurance for our U.S. operations risk on a primary basis and we purchase excess coverage from unrelated insurance carriers. The captive insurance company also insures primary risk relating to professional indemnity claims globally. Given the nature of these types of claims, it may take several years for resolution and determination of the cost of these claims. We are required to estimate the cost of these claims in our financial statements. |
Special Purpose Acquisition Company | Special Purpose Acquisition Company CBRE Acquisition Holdings is a consolidated VIE that is included in the accompanying consolidated balance sheet under the following captions: Investments Held in Trust - Special Purpose Acquisition Company As part of the initial public offering of CBRE Acquisition Holdings, $402.5 million has been deposited in an interest-bearing U.S. based trust account (Trust Account). The funds in the Trust Account will be invested only in specified U.S. government treasury bills with a maturity of 180 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act that invest only in direct U.S. government treasury obligations (collectively “permitted investments”). These funds do not qualify as either cash or restricted cash and will remain in the Trust Account except for the withdrawal of interest earned on the funds that may be released to CBRE Acquisition Holdings to pay taxes. Non-controlling Interest Subject to Possible Redemption - Special Purpose Acquisition Company The company accounts for the non-controlling interest in CBRE Acquisition Holdings as subject to possible redemption in accordance with the guidance in FASB ASC Topic 480 “ Distinguishing Liabilities from Equity.” CBRE Acquisition Holdings’ common stock features certain redemption rights that are considered to be outside of the company’s control and subject to occurrence of uncertain future events. Accordingly, this non-controlling interest subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section in the accompanying consolidated financial statements as of December 31, 2020. CBRE will recognize changes in redemption value immediately as they occur – i.e . adjust the carrying amount of the instrument to its current redemption amount at each reporting date. For the year ended December 31, 2020, there was no material change in the redemption value of the redeemable non-controlling interest. Presentation on our Consolidated Statements of Cash Flows |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2019 consolidated financial statements to conform with the 2020 presentation. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements The FASB previously issued five ASUs related to financial instruments—credit losses. The ASUs issued were: (1) in June 2016, ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” (2) in November 2018, ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses,” (3) in April 2019, ASU 2019-04, “ Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging , and Topic 825, Financial Instruments,” (4) in May 2019, ASU 2019-05, “ Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief,” and (5) in November 2019, ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses.” Additionally, in February and March 2020, the FASB issued ASU 2020-02, “Financial Instruments—Credit Losses (Topic 326)” and “Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to ASU 2016-02, Leases (Topic 842)” and ASU 2020-03, “ Codification Improvements to Financial Instruments,” respectively, which include amendments to Topic 326. ASU 2016-13 is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leasing standard. ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on financial instruments—credit losses, derivatives and hedging, and financial instruments. ASU 2019-05 provides entities that have certain instruments within the scope of Subtopic 326-20, “ Financial Instruments—Credit Losses—Measured at Amortized Cost ,” with an option to irrevocably elect the fair value option in Subtopic 825-10, “ Financial Instruments—Overall .” ASU 2019-11 clarifies guidance around how to report expected recoveries and reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities, among other narrow scope and technical improvements. ASU 2020-02 adds an SEC paragraph pursuant to the issuance of SEC Staff Accounting Bulletin No. 119 on loan losses to Topic 326 and also updates the SEC section of the codification for the change in the effective date of Topic 842. ASU 2020-03 makes narrow-scope improvements to various aspects of the financial instrument guidance as part of the FASB’s ongoing codification improvement project aimed at clarifying specific areas of accounting guidance to help avoid unintended application. We adopted ASU 2016-13, ASU 2018-19 (as it relates to financial instruments—credit losses), ASU 2019-05, ASU 2019-11, ASU 2020-02 and ASU 2020-03 in the first quarter of 2020 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In November 2018, the FASB issued ASU 2018‑18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606.” This ASU provides guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within the revenue recognition standard and provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those years, with early adoption permitted. We adopted ASU 2018‑18 in the first quarter of 2020 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018‑14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for fiscal years ending after December 15, 2020, with early adoption permitted. ASU 2018-14 only revises disclosure requirements. We adopted ASU 2018‑14 in the fourth quarter of 2020 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. Recent Accounting Pronouncements Pending Adoption In December 2019, the FASB issued ASU 2019‑12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU removes specific exceptions to the general principles in Topic 740 and improves and simplifies financial statement preparers’ application of income tax-related guidance. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years, with early adoption permitted. We are evaluating the effect that ASU 2019‑12 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In January 2020, the FASB issued ASU 2020‑01, “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815).” This ASU, among other things, clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323 and clarifies that, when determining the accounting for certain forward contracts and purchased options a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years, with early adoption permitted. We are evaluating the effect that ASU 2020‑01 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. This ASU is effective for a limited time for all entities through December 31, 2022. We are evaluating the effect that ASU 2020-04 will have on our consolidated financial statements and related disclosures. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables — Nonrefundable Fees and Other Costs.” This ASU states that an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33 for each reporting period. The ASU is not expected to have a significant effect on current practice or create a large administrative cost for most entities. The amendments stated in this ASU are intended to make ASC 310-20 easier to understand and apply. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years. Early application is not permitted. We are evaluating the effect that ASU 2020-08 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In October 2020, the FASB issued ASU 2020-09, “ Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762. ” This ASU aligns the SEC paragraphs in the codification with the new SEC rules issued in March 2020 relating to changes to the disclosure requirements for certain debt securities. Certain glossary terms were superseded, and amendments were made to debt and other topics as a result of this update. On March 2, 2020, the SEC issued Release No. 33-10762 , which made significant changes to its disclosure requirements relating to certain debt securities. The new rules impact disclosures related to registered securities that are guaranteed and those that are collateralized by the securities of an affiliate. The final rules became effective on January 4, 2021. Voluntary compliance with the final amendments in advance of January 4, 2021 is permitted. We are evaluating the effect that ASU 2020-09 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements.” This ASU is intended to conform, clarify, simplify, and/or provide technical corrections to a wide variety of codification topics, including moving certain presentation and disclosure guidance to the appropriate codification section. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those years. Early application of the amendments is permitted for and varies based on the entity. The amendments should be applied retrospectively and at the beginning of the period that includes the adoption date. We are evaluating the effect that ASU 2020-10 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Real Estate Assets | A summary of our real estate assets is as follows (dollars in thousands): December 31, 2020 2019 Real estate under development, current (included in other current assets) $ 55,072 $ 14,757 Real estate and other assets held for sale (included in other current assets) 3,710 5,066 Real estate under development 277,630 185,508 Real estate held for investment (included in other assets, net) 3,795 8,101 Total real estate $ 340,207 $ 213,432 |
Schedule of Loan Servicing Rights Recognized | The amount of MSRs recognized during the years ended December 31, 2020 and 2019 was as follows (dollars in thousands): Year Ended December 31, 2020 2019 Beginning balance, mortgage servicing rights $ 483,492 $ 424,470 Mortgage servicing rights recognized 207,827 182,443 Mortgage servicing rights sold (122) — Amortization expense (134,266) (123,008) Other — (413) Ending balance, mortgage servicing rights $ 556,931 $ 483,492 |
Schedule of Assumptions Used in Measuring Fair Value of Servicing Assets | The key assumptions used during the years ended December 31, 2020, 2019 and 2018 in measuring fair value were as follows: Year Ended December 31, 2020 2019 2018 Discount rate 11.73 % 10.12 % 10.00 % Conditional prepayment rate 9.80 % 10.34 % 8.89 % |
Telford Acquisition (Tables)
Telford Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Excess Purchase Price Over Estimated Fair Value of Net Assets Acquired | The following represents the summary of the excess purchase price over the fair value of net assets acquired (dollars in thousands): Purchase price $ 328,502 Less: Final fair value of net assets acquired (see table below) 297,669 Excess purchase price over fair value of net assets acquired $ 30,833 |
Summary of Aggregate Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the final fair values assigned to the identified assets acquired and liabilities assumed (dollars in thousands): Assets Acquired: Cash and cash equivalents $ 7,896 Receivables 6,993 Contract assets, current 31,850 Prepaid expenses 2,704 Property and equipment 2,637 Other intangible assets 26,749 Operating lease assets 6,488 Investments in unconsolidated subsidiaries 79,667 Non-current contract assets 8,015 Real estate under development 208,402 Deferred tax assets, net 2,857 Other assets (current and non-current) 99,429 Total assets acquired 483,687 Liabilities Assumed: Accounts payable and accrued expenses 47,552 Compensation and employee benefits payable 1,580 Accrued bonus 3,274 Operating lease liabilities 941 Contract liabilities, current 1,949 Income taxes payable 1,813 Line of credit 110,687 Non-current operating lease liabilities 5,547 Other liabilities (current and non-current) 12,675 Total liabilities assumed 186,018 Fair Value of Net Assets Acquired $ 297,669 |
Schedule of Trademarks Acquired as Part of Business Combination | In connection with the Telford Acquisition, below is a summary of the value allocated to the trademark acquired (dollars in thousands): December 31, 2019 Asset Class Amortization Amount Accumulated Net Carrying Trademark 20 Years $ 26,749 $ 1,725 $ 28,474 |
Summary of Pro Forma Results Prepared for Comparative Purposes | These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the Telford Acquisition occurred on January 1, 2018 and may not be indicative of future operating results (dollars in thousands, except share data): Year Ended December 31, 2019 2018 Revenue $ 24,158,427 $ 21,803,506 Operating income 1,294,480 1,157,051 Net income attributable to CBRE Group, Inc. 1,321,097 1,121,469 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 3.93 $ 3.31 Weighted average shares outstanding for basic income per share 335,795,654 339,321,056 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 3.88 $ 3.27 Weighted average shares outstanding for diluted income per share 340,522,871 343,122,741 |
Warehouse Receivables & Wareh_2
Warehouse Receivables & Warehouse Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Schedule of Warehouse Receivables | A rollforward of our warehouse receivables is as follows (dollars in thousands): Beginning balance at December 31, 2019 $ 993,058 Origination of mortgage loans 21,268,114 Gains (premiums on loan sales) 75,227 Proceeds from sale of mortgage loans: Sale of mortgage loans (20,862,294) Cash collections of premiums on loan sales (75,227) Proceeds from sale of mortgage loans (20,937,521) Net increase in mortgage servicing rights included in warehouse receivables 12,292 Ending balance at December 31, 2020 $ 1,411,170 |
Summary of Warehouse Lines of Credit in Place | The following table is a summary of our warehouse lines of credit in place as of December 31, 2020 and 2019 (dollars in thousands): December 31, 2020 December 31, 2019 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 10/18/2021 daily floating rate LIBOR plus 1.60% $ 1,585,000 $ 561,726 $ 985,000 $ 267,075 JP Morgan (2) 10/18/2021 daily floating rate LIBOR plus 2.75% 15,000 — 15,000 — Capital One, N.A. (Capital One) (3) — — 200,000 39,538 Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program (4) Cancelable daily one-month LIBOR plus 1.45%, with a LIBOR floor of 0.25% 450,000 132,692 450,000 360,784 TD Bank, N.A. (TD Bank) (5) 6/30/2021 2-Business Day Prior LIBOR plus 1.15% 800,000 401,849 800,000 92,266 Bank of America, N.A. (BofA) (6) 5/26/2021 (7) 350,000 175,862 350,000 189,465 BofA (8) — — 250,000 17,457 MUFG Union Bank, N.A. (Union Bank) (9) 6/28/2021 daily floating rate LIBOR plus 1.50%, with a LIBOR floor of 0.25% 300,000 111,835 350,000 10,590 $ 3,500,000 $ 1,383,964 $ 3,400,000 $ 977,175 _______________ (1) Effective October 19, 2020, this facility was amended and the maximum facility size was temporarily increased to $1,585.0 million, and reverted back to $985.0 million on January 18, 2021. The interest rate increased to daily floating rate LIBOR plus 1.60% and the revised maturity date is October 18, 2021. Effective December 1, 2020, the maximum facility was temporarily increased to $2,085.0 million, which reverted back to $1,585.0 million on December 31, 2020. (2) Effective October 19, 2020, the maturity date was extended to October 18, 2021. (3) This facility expired on July 27, 2020 and was not renewed. (4) Effective September 25, 2020, the spread was increased by 10 bps and the LIBOR floor was reduced to 0.25%. (5) Effective July 1, 2020, this facility was amended and provides for a maximum aggregate principal amount of $400.0 million, in addition to an uncommitted $400.0 million temporary line of credit, with an unchanged interest rate and revised maturity date of June 30, 2021. Effective September 21, 2020, CBRE utilized the additional $400.0 million as a temporary increase, which expired on December 31, 2020. (6) On June 10, 2020, this facility was amended with a revised maturity date of May 26, 2021. The total commitment amount of $350.0 million includes a separate sublimit borrowing in the amount of $100.0 million, which can be utilized for specific purposes as defined within the agreement. As of December 31, 2020, the sublimit borrowing has not been utilized. (7) Effective July 24, 2020, the interest rate on this facility was as follows: (i) daily floating rate LIBOR plus 1.40%, with a LIBOR floor of 0.25%, on the general facility and (ii) daily floating rate LIBOR plus 1.75% on the separate sublimit borrowing. (8) This facility expired on May 27, 2020 and was not renewed. (9) On June 28, 2019, we added a new warehouse facility for $200.0 million that contains an accordion feature which allowed for temporary increases not to exceed an additional $150.0 million. If utilized, the additional borrowings must be in predefined multiples and are not to occur more than three times within twelve consecutive months. On June 26, 2020, the maturity was extended to July 28, 2020 and on July 28, 2020 the maturity date was extended to August 27, 2020. Effective August 4, 2020, this facility was amended with a revised interest rate of daily floating rate LIBOR plus 1.50%, with a floor of 0.25%, and a maturity date of June 28, 2021. Additionally, this amendment decreased the accordion feature from $150.0 million to $100.0 million, with no changes to the predefined borrowing multiples. On September 22, 2020, the temporary increase of $100.0 million was utilized and expired on January 20, 2021. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Maximum Exposure to Loss | As of December 31, 2020 and 2019, our maximum exposure to loss related to the VIEs that are not consolidated was as follows (dollars in thousands): December 31, 2020 2019 Investments in unconsolidated subsidiaries $ 66,947 $ 30,484 Other current assets 4,219 4,307 Co-investment commitments 47,957 29,696 Maximum exposure to loss $ 119,123 $ 64,487 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets Measured at Fair Value on Recurring Basis | The following tables present the fair value of assets measured at fair value on a recurring basis as of December 31, 2020 and 2019 (dollars in thousands): December 31, 2020 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 7,270 $ — $ — $ 7,270 Debt securities issued by U.S. federal agencies — 10,216 — 10,216 Corporate debt securities — 51,244 — 51,244 Asset-backed securities — 3,801 — 3,801 Collateralized mortgage obligations — 1,369 — 1,369 Total available for sale debt securities 7,270 66,630 — 73,900 Equity securities 43,334 — — 43,334 Investments in unconsolidated subsidiaries — — 50,000 50,000 Warehouse receivables — 1,411,170 — 1,411,170 Total assets at fair value $ 50,604 $ 1,477,800 $ 50,000 $ 1,578,404 December 31, 2019 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 6,998 $ — $ — $ 6,998 Debt securities issued by U.S. federal agencies — 10,639 — 10,639 Corporate debt securities — 29,098 — 29,098 Asset-backed securities — 5,152 — 5,152 Collateralized mortgage obligations — 2,222 — 2,222 Total available for sale debt securities 6,998 47,111 — 54,109 Equity securities 51,399 — — 51,399 Warehouse receivables — 993,058 — 993,058 Total assets at fair value $ 58,397 $ 1,040,169 $ — $ 1,098,566 |
Summary of Non-Recurring Fair Value Measurement | The following non-recurring fair value measurements were recorded for the year ended December 31, 2020 (dollars in thousands): Net Carrying Value as of December 31, 2020 Fair Value Measured and Recorded Using Total Impairment Charges for the Year Ended December 31, 2020 Level 1 Level 2 Level 3 Property and equipment $ 12,870 $ — $ 12,870 $ — $ 29,168 Goodwill 443,305 — — 443,305 25,000 Other intangible assets 12,562 — — 12,562 34,508 Total $ 468,737 $ — $ 12,870 $ 455,867 $ 88,676 The following non-recurring fair value measurements were recorded for the year ended December 31, 2019 (dollars in thousands): Net Carrying Value as of December 31, 2019 Fair Value Measured and Recorded Using Total Impairment Charges for the Year Ended December 31, 2019 Level 1 Level 2 Level 3 Other intangible assets $ 14,753 $ — $ — $ 14,753 $ 89,787 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following (dollars in thousands): December 31, Useful Lives 2020 2019 Computer hardware and software 2-10 years $ 974,490 $ 931,891 Leasehold improvements 1-15 years 554,252 510,917 Furniture and equipment 1-10 years 243,880 334,625 Construction in progress N/A 117,274 129,671 Total cost 1,889,896 1,907,104 Less: Accumulated depreciation and amortization 1,074,887 1,070,898 Property and equipment, net $ 815,009 $ 836,206 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill by Segment | The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 (dollars in thousands): Advisory Global Real Estate Total Balance as of December 31, 2018 Goodwill $ 3,269,954 $ 875,570 $ 575,291 4,720,815 Accumulated impairment losses (761,448) (175,473) (131,585) (1,068,506) 2,508,506 700,097 443,706 3,652,309 Purchase accounting entries related to acquisitions 29,544 7,657 42,176 79,377 Foreign exchange movement 2,720 16,279 2,808 21,807 Balance as of December 31, 2019 Goodwill 3,302,218 899,506 620,275 4,821,999 Accumulated impairment losses (761,448) (175,473) (131,585) (1,068,506) 2,540,770 724,033 488,690 3,753,493 Purchase accounting entries related to acquisitions 16,463 9,702 (7,984) 18,181 Impairment — — (25,000) (25,000) Foreign exchange movement 30,107 28,589 16,239 74,935 Balance as of December 31, 2020 Goodwill 3,348,788 937,797 628,530 4,915,115 Accumulated impairment losses (761,448) (175,473) (156,585) (1,093,506) $ 2,587,340 $ 762,324 $ 471,945 $ 3,821,609 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets totaled $1,367.9 million, net of accumulated amortization of $1,556.5 million as of December 31, 2020, and $1,379.5 million, net of accumulated amortization of $1,358.5 million, as of December 31, 2019 and are comprised of the following (dollars in thousands): December 31, 2020 2019 Gross Accumulated Gross Accumulated Unamortizable intangible assets: Management contracts $ 67,422 $ 62,338 Trademarks 56,800 56,800 Trade name — 6,000 124,222 125,138 Amortizable intangible assets: Customer relationships 880,104 $ (603,866) 857,772 $ (519,162) Mortgage servicing rights 927,525 (370,634) 803,419 (319,927) Trademarks/Trade names 354,060 (111,595) 345,834 (92,730) Management contracts 152,312 (145,612) 142,767 (138,891) Covenant not to compete 73,750 (73,750) 73,750 (73,750) Other 412,477 (251,080) 389,394 (214,068) 2,800,228 (1,556,537) 2,612,936 (1,358,528) Total intangible assets $ 2,924,450 $ (1,556,537) $ 2,738,074 $ (1,358,528) |
Schedule of Finite-Lived Intangible Assets | Other intangible assets totaled $1,367.9 million, net of accumulated amortization of $1,556.5 million as of December 31, 2020, and $1,379.5 million, net of accumulated amortization of $1,358.5 million, as of December 31, 2019 and are comprised of the following (dollars in thousands): December 31, 2020 2019 Gross Accumulated Gross Accumulated Unamortizable intangible assets: Management contracts $ 67,422 $ 62,338 Trademarks 56,800 56,800 Trade name — 6,000 124,222 125,138 Amortizable intangible assets: Customer relationships 880,104 $ (603,866) 857,772 $ (519,162) Mortgage servicing rights 927,525 (370,634) 803,419 (319,927) Trademarks/Trade names 354,060 (111,595) 345,834 (92,730) Management contracts 152,312 (145,612) 142,767 (138,891) Covenant not to compete 73,750 (73,750) 73,750 (73,750) Other 412,477 (251,080) 389,394 (214,068) 2,800,228 (1,556,537) 2,612,936 (1,358,528) Total intangible assets $ 2,924,450 $ (1,556,537) $ 2,738,074 $ (1,358,528) |
Investments in Unconsolidated_2
Investments in Unconsolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Condensed Financial Information of Equity Method Investments | Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): December 31, 2020 2019 Combined Condensed Balance Sheets Information: Current assets $ 6,508,718 $ 5,407,082 Non-current assets 24,343,229 20,414,598 Total assets $ 30,851,947 $ 25,821,680 Current liabilities $ 3,164,135 $ 2,241,930 Non-current liabilities 6,696,352 5,857,413 Total liabilities $ 9,860,487 $ 8,099,343 Non-controlling interests $ 460,904 $ 461,018 Year Ended December 31, 2020 2019 2018 Combined Condensed Statements of Operations Information: Revenue $ 2,036,818 $ 1,545,424 $ 1,524,685 Operating income 587,689 549,111 906,889 Net income 483,224 419,966 679,712 |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt and Short-Term Borrowings | Total long-term debt and short-term borrowings consist of the following (dollars in thousands): December 31, 2020 2019 Long-Term Debt Senior term loans, with interest ranging from 0.75% to 1.15%, due quarterly through 2024 $ 788,759 $ 748,531 4.875% senior notes due in 2026, net of unamortized discount 597,470 597,052 5.25% senior notes, redeemed in December 2020 — 425,952 Other 1,514 1,861 Total long-term debt 1,387,743 1,773,396 Less: current maturities of long-term debt 1,514 1,814 Less: unamortized debt issuance costs 6,027 10,337 Total long-term debt, net of current maturities $ 1,380,202 $ 1,761,245 Short-Term Borrowings Warehouse lines of credit, with interest ranging from 1.65% to 2.89%, due in 2021 $ 1,383,964 $ 977,175 Other 5,330 4,534 Total short-term borrowings $ 1,389,294 $ 981,709 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to our leases is as follows (dollars in thousands): December 31, Category Classification 2020 2019 Assets Operating Operating lease assets $ 1,020,352 $ 997,966 Finance Other assets, net 117,805 94,141 Total leased assets $ 1,138,157 $ 1,092,107 Liabilities Current: Operating Operating lease liabilities $ 208,526 $ 168,663 Finance Other current liabilities 39,298 34,966 Non-current: Operating Non-current operating lease liabilities 1,116,795 1,057,758 Finance Other liabilities 78,881 60,001 Total lease liabilities $ 1,443,500 $ 1,321,388 |
Schedule of Components of Lease Costs | Components of lease cost are as follows (dollars in thousands): Year Ended December 31, Component Classification 2020 2019 Operating lease cost Operating, administrative and other $ 204,415 $ 189,106 Finance lease cost: Amortization of right-of-use assets (1) 38,568 31,081 Interest on lease liabilities Interest expense 1,847 1,317 Variable lease cost (2) 74,332 74,476 Sublease income Revenue (2,643) (3,734) Total lease cost $ 316,519 $ 292,246 _______________ (1) Amortization costs of $32.7 million and $25.5 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Amortization costs of $5.9 million and $5.6 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. (2) Variable lease costs of $17.1 million and $17.5 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Variable lease costs of $55.6 million and $57.0 million from all other leases are included in the “Operating, administrative, and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. |
Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases | Weighted average remaining lease term and discount rate for our operating and finance leases are as follows: December 31, 2020 2019 Weighted-average remaining lease term: Operating leases 8 years 9 years Finance leases (1) 71 years 3 years Weighted-average discount rate: Operating leases 3.1% 3.4% Finance leases (1) 5.0% 2.3% _______________ (1) Finance leases as of December 31, 2020 included a 99 year lease on a real estate under development. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 2.1%, respectively. |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities by fiscal year as of December 31, 2020 are as follows (dollars in thousands): Operating Finance 2021 $ 214,887 $ 64,363 2022 214,895 50,225 2023 196,987 36,852 2024 177,466 19,150 2025 161,362 4,552 Thereafter 551,661 364,101 Total remaining lease payments at December 31, 2020 1,517,258 539,243 Less: Interest 191,937 421,065 Present value of lease liabilities at December 31, 2020 $ 1,325,321 $ 118,178 |
Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases | Supplemental cash flow information and non-cash activity related to our operating and finance leases are as follows (dollars in thousands): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 170,317 $ 167,652 Operating cash flows from finance leases 2,077 1,559 Financing cash flows from finance leases (1) 40,304 31,006 Right-of-use assets obtained in exchange for new operating lease liabilities 177,384 168,972 Right-of-use assets obtained in exchange for new finance lease liabilities 61,218 63,041 Other non-cash (decrease) increase in operating lease right-of-use assets (2) (17,621) 47,851 Other non-cash decreases in finance lease right-of-use assets (2) (1,233) (1,826) _______________ (1) Financing cash flows from finance leases were included in “Accounts payable and accrued expenses and other liabilities (including contract and lease liabilities)” within operating cash flows for 2019 due to immateriality. Given the increase in the outflow, it is included in “Other financing activities, net” within financing cash flows for 2020 in the accompanying consolidated statements of cash flows. (2) The non-cash activity in the right-of-use assets resulted from lease modifications and remeasurements. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Fair Value of TSR Performance RSUs | We estimated the fair value of the TSR Performance RSUs referred to above on the date of the grant using a Monte Carlo simulation with the following assumptions: Year Ended December 31, 2019 2018 Volatility of common stock 25.96 % 25.02 % Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 2.12 % 2.73 % |
Schedule of Non-Vested Stock Awards | A summary of the status of our non-vested stock awards is presented in the table below: Shares/Units Weighted Average Balance at December 31, 2017 7,677,102 $ 37.76 Granted 2,023,266 45.70 Performance award achievement adjustments 282,953 38.09 Vested (2,177,800) 34.78 Forfeited (623,161) 40.85 Balance at December 31, 2018 7,182,360 41.04 Granted 2,000,977 50.07 Performance award achievement adjustments 166,007 37.36 Vested (1,323,351) 37.43 Forfeited (316,294) 42.09 Balance at December 31, 2019 7,709,699 43.89 Granted 1,605,934 56.45 Performance award achievement adjustments 560,563 39.89 Vested (2,780,377) 39.81 Forfeited (412,407) 48.27 Balance at December 31, 2020 6,683,412 47.99 |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets | |
Schedule of Amounts Recognized in Balance Sheet | The following table provides amounts recognized related to our defined benefit pension plans within the following captions on our consolidated balance sheets (dollars in thousands): December 31, 2020 2019 Other assets, net $ 58,410 $ 25,469 Other current liabilities 19,432 12,144 Other liabilities 135,440 145,432 |
Schedule of Expected Benefit Payments | The following table presents estimated future benefit payments over the next ten years, as of December 31, 2020. We will fund these obligations from the assets held by these plans. If the assets these plans hold are not sufficient to fund these payments, the company will fund the remaining obligations (dollars in thousands): 2021 2022 2023 2024 2025 2026 - 2030 Estimated future benefit payments for defined benefit plans $ 38,941 $ 35,804 $ 37,877 $ 39,655 $ 40,888 $ 216,678 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Provision for Income Taxes | The components of income before provision for income taxes consisted of the following (dollars in thousands): Year Ended December 31, 2020 2019 2018 Domestic $ 470,181 $ 839,899 $ 807,590 Foreign 499,788 521,446 571,416 $ 969,969 $ 1,361,345 $ 1,379,006 |
Tax Provision (Benefit) | Our tax provision (benefit) consisted of the following (dollars in thousands): Year Ended December 31, 2020 2019 2018 Federal: Current $ 18,951 $ (51,980) $ 166,024 Deferred 61,034 (74,432) (7,667) 79,985 (126,412) 158,357 State: Current 33,291 52,403 43,320 Deferred 3,872 (5,760) (3,692) 37,163 46,643 39,628 Foreign: Current 88,994 163,833 149,194 Deferred 7,959 (14,169) (34,121) 96,953 149,664 115,073 $ 214,101 $ 69,895 $ 313,058 |
Reconciliation of Pre-Tax Income | The following is a reconciliation stated as a percentage of pre-tax income of the U.S. statutory federal income tax rate to our effective tax rate: Year Ended December 31, 2020 2019 2018 Federal statutory tax rate 21 % 21 % 21 % Foreign rate differential — 4 — State taxes, net of federal benefit 3 3 3 Non-deductible expenses 1 1 2 Reserves for uncertain tax positions — 1 — Credits and exemptions (2) (4) (2) Outside basis differences recognized as a result of a legal entity restructuring — (20) — Tax Reform — — 1 Change in valuation allowance — — (1) Acquisition-related costs — — (2) Other (1) (1) 1 Effective tax rate 22 % 5 % 23 % |
Temporary Tax Effects | Cumulative tax effects of temporary differences are shown below (dollars in thousands): December 31, 2020 2019 Asset (Liability) Tax losses and tax credits $ 334,303 $ 330,839 Operating lease liabilities 358,066 320,261 Bonus and deferred compensation 295,690 280,747 Bad debt and other reserves 73,061 66,504 Pension obligation 18,026 24,022 Investments 17,506 5,236 Tax effect on revenue items related to Topic 606 adoption (16,784) (25,620) Property and equipment (88,595) (54,370) Unconsolidated affiliates and partnerships (59,544) (63,594) Capitalized costs and intangibles (313,099) (277,246) Operating lease assets (366,671) (314,433) All other 6,181 (1,153) Net deferred tax assets before valuation allowance 258,140 291,193 Valuation allowance (291,096) (251,922) Net deferred tax (liabilities) assets $ (32,956) $ 39,271 |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in thousands): Year Ended December 31, 2020 2019 Beginning balance, unrecognized tax benefits $ (141,164) $ (94,962) Gross increases - tax positions in prior period (31,070) (22,229) Gross decreases - tax positions in prior period 1,530 17,390 Gross increases - current-period tax positions (9,688) (45,262) Decreases relating to settlements — 218 Reductions as a result of lapse of statute of limitations 11,791 3,680 Foreign exchange movement 85 1 Ending balance, unrecognized tax benefits $ (168,516) $ (141,164) |
Income Per Share Information (T
Income Per Share Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Income Per Share | The calculations of basic and diluted income per share attributable to CBRE Group, Inc. stockholders are as follows (dollars in thousands, except share and per share data): Year Ended December 31, 2020 2019 2018 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 751,989 $ 1,282,357 $ 1,063,219 Weighted average shares outstanding for basic income per share 335,196,296 335,795,654 339,321,056 Basic income per share attributable to CBRE Group, Inc. stockholders $ 2.24 $ 3.82 $ 3.13 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 751,989 $ 1,282,357 $ 1,063,219 Weighted average shares outstanding for basic income per share 335,196,296 335,795,654 339,321,056 Dilutive effect of contingently issuable shares 3,195,914 4,727,217 3,801,293 Dilutive effect of stock options — — 392 Weighted average shares outstanding for diluted income per share 338,392,210 340,522,871 343,122,741 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 2.22 $ 3.77 $ 3.10 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customers | The following tables represent a disaggregation of revenue from contracts with customers by type of service and/or segment (dollars in thousands): Year Ended December 31, 2020 Advisory Global Real Estate Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 15,295,673 $ — $ 15,295,673 Advisory leasing 2,404,273 — — 2,404,273 Advisory sales 1,658,702 — — 1,658,702 Property and advisory project management 2,204,263 2,204,263 Valuation 614,307 — — 614,307 Commercial mortgage origination (1) 130,883 — — 130,883 Loan servicing (2) 45,692 — — 45,692 Investment management — — 474,939 474,939 Development services — — 341,387 341,387 Topic 606 Revenue 7,058,120 15,295,673 816,326 23,170,119 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 446,968 — — 446,968 Loan servicing 193,904 — — 193,904 Development services (3) — — 15,204 15,204 Total Out of Scope of Topic 606 Revenue 640,872 — 15,204 656,076 Total revenue $ 7,698,992 $ 15,295,673 $ 831,530 $ 23,826,195 Year Ended December 31, 2019 Advisory Global Real Estate Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 14,164,001 $ — $ 14,164,001 Advisory leasing 3,269,993 — — 3,269,993 Advisory sales 2,130,979 — — 2,130,979 Property and advisory project management 2,255,398 — — 2,255,398 Valuation 630,399 — — 630,399 Commercial mortgage origination (1) 154,227 — — 154,227 Loan servicing (2) 30,943 — — 30,943 Investment management — — 424,882 424,882 Development services — — 213,264 213,264 Topic 606 Revenue 8,471,939 14,164,001 638,146 23,274,086 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 421,736 — — 421,736 Loan servicing 175,793 — — 175,793 Development services (3) — — 22,476 22,476 Total Out of Scope of Topic 606 Revenue 597,529 — 22,476 620,005 Total revenue $ 9,069,468 $ 14,164,001 $ 660,622 $ 23,894,091 Year Ended December 31, 2018 (4) Advisory Global Real Estate Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 12,365,362 $ — $ 12,365,362 Advisory leasing 3,080,117 — — 3,080,117 Advisory sales 1,980,932 — — 1,980,932 Property and advisory project management 2,057,433 — — 2,057,433 Valuation 598,806 — — 598,806 Commercial mortgage origination (1) 136,534 — — 136,534 Loan servicing (2) 24,192 — — 24,192 Investment management — — 434,405 434,405 Development services — — 100,319 100,319 Topic 606 Revenue 7,878,014 12,365,362 534,724 20,778,100 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 402,814 — — 402,814 Loan servicing 159,174 — — 159,174 Total Out of Scope of Topic 606 Revenue 561,988 — — 561,988 Total revenue $ 8,440,002 $ 12,365,362 $ 534,724 $ 21,340,088 _______________ (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Out of scope revenue for development services represents selling profit from transfers of sales-type leases in the scope of Topic 842. (4) Our new organizational structure became effective January 1, 2019. See Note 19 for additional information. Revenue classifications for 2018 have been restated to conform to the new structure. |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summarized Financial Information by Segment | Summarized financial information by segment is as follows (dollars in thousands): Year Ended December 31, 2020 2019 2018 Revenue Advisory Services $ 7,698,992 $ 9,069,468 $ 8,440,002 Global Workspace Solutions 15,295,673 14,164,001 12,365,362 Real Estate Investments 831,530 660,622 534,724 Total revenue $ 23,826,195 $ 23,894,091 $ 21,340,088 Depreciation and Amortization Advisory Services $ 348,669 $ 304,766 $ 280,921 Global Workspace Solutions 125,692 120,975 147,222 Real Estate Investments 27,367 13,483 23,845 Total depreciation and amortization $ 501,728 $ 439,224 $ 451,988 Equity Income (Loss) from Unconsolidated Subsidiaries Advisory Services $ 2,245 $ 6,894 $ 16,017 Global Workspace Solutions 368 (1,423) 115 Real Estate Investments 123,548 155,454 308,532 Total equity income from unconsolidated subsidiaries $ 126,161 $ 160,925 $ 324,664 Adjusted EBITDA Advisory Services $ 1,143,889 $ 1,465,792 $ 1,303,251 Global Workspace Solutions 516,814 424,026 345,560 Real Estate Investments 231,682 173,965 256,357 Total Adjusted EBITDA $ 1,892,385 $ 2,063,783 $ 1,905,168 |
Adjusted EBITDA Calculation by Segment | Adjusted EBITDA is calculated as follows (dollars in thousands): Year Ended December 31, 2020 2019 2018 Net income attributable to CBRE Group, Inc. $ 751,989 $ 1,282,357 $ 1,063,219 Add: Depreciation and amortization 501,728 439,224 451,988 Asset impairments 88,676 89,787 — Interest expense, net of interest income 67,753 85,754 98,685 Write-off of financing costs on extinguished debt 75,592 2,608 27,982 Provision for income taxes 214,101 69,895 313,058 EBITDA 1,699,839 1,969,625 1,954,932 Adjustments: Costs associated with transformation initiatives (1) 155,148 — — Costs associated with workforce optimization efforts (2) 37,594 — — Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in the period 11,598 9,301 — Costs incurred related to legal entity restructuring 9,362 6,899 — Integration and other costs related to acquisitions 1,756 15,292 9,124 Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue (22,912) 13,101 (5,261) Costs associated with our reorganization, including cost-savings initiatives (3) — 49,565 37,925 Costs incurred in connection with litigation settlement — — 8,868 One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired — — (100,420) Adjusted EBITDA $ 1,892,385 $ 2,063,783 $ 1,905,168 _______________ (1) During 2020, management began the implementation of certain transformation initiatives to enable the company to reduce costs, streamline operations and support future growth. The majority of expenses incurred were cash in nature and primarily related to employee separation benefits, lease termination costs and professional fees. See Note 21 for further discussion. (2) Primarily represents costs incurred related to workforce optimization initiated and executed in the second quarter of 2020 as part of management’s cost containment efforts in response to the Covid-19 pandemic. The charges are cash expenditures primarily for severance costs incurred related to this effort. Of the total costs, $7.4 million was included within the “Cost of revenue” line item and $30.2 million was included in the “Operating, administrative, and other” line item in the accompanying consolidated statements of operations for the year ended December 31, 2020. (3) Primarily represents severance costs related to headcount reductions in connection with our reorganization announced in the third quarter of 2018 that became effective January 1, 2019. |
Summary of Geographic Information | Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Year Ended December 31, 2020 2019 2018 Revenue United States $ 13,472,013 $ 13,852,018 $ 12,264,188 United Kingdom 3,083,810 2,972,704 2,586,890 All other countries 7,270,372 7,069,369 6,489,010 Total revenue $ 23,826,195 $ 23,894,091 $ 21,340,088 |
Transformation Initiatives (Tab
Transformation Initiatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of Transformation Initiative Costs | As part of these initiatives, we incurred the following costs, primarily in cash, for the year ended December 31, 2020 (dollars in thousands): Advisory Global Real Estate Consolidated Employee separation benefits $ 57,550 $ 31,083 $ 2,444 $ 91,077 Lease termination costs 43,225 4,586 — 47,811 Professional fees and other 13,212 2,510 538 16,260 Subtotal 113,987 38,179 2,982 155,148 Depreciation expense 14,184 166 6,342 20,692 Total $ 128,171 $ 38,345 $ 9,324 $ 175,840 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Three Months Ended December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 (Dollars in thousands, except share and per share data) Revenue $ 6,910,501 $ 5,645,142 $ 5,381,384 $ 5,889,168 Operating income 443,896 211,408 94,165 220,290 Net income attributable to CBRE Group, Inc. 313,765 184,132 81,897 172,195 Basic income per share $ 0.94 $ 0.55 $ 0.24 $ 0.51 Weighted average shares outstanding for basic income per share 335,397,942 335,287,245 335,126,126 334,969,826 Diluted income per share $ 0.93 $ 0.55 $ 0.24 $ 0.51 Weighted average shares outstanding for diluted income per share 338,799,615 337,665,848 337,361,419 339,737,911 Three Months Ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 (Dollars in thousands, except share and per share data) Revenue $ 7,119,407 $ 5,925,101 $ 5,714,073 $ 5,135,510 Operating income 513,841 316,630 284,417 144,987 Net income attributable to CBRE Group, Inc. 637,618 256,599 223,731 164,409 Basic income per share $ 1.90 $ 0.76 $ 0.67 $ 0.49 Weighted average shares outstanding for basic income per share 334,745,003 336,203,747 336,222,471 336,020,431 Diluted income per share $ 1.87 $ 0.75 $ 0.66 $ 0.48 Weighted average shares outstanding for diluted income per share 340,333,005 341,100,182 340,508,931 340,158,399 |
Nature of Operations - (Details
Nature of Operations - (Details) employee in Millions | Dec. 31, 2020employeecountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of employees | employee | 0.1 |
Number of countries in which entity operates | country | 100 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) | Dec. 28, 2020 | Mar. 15, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Sep. 26, 2014 | Mar. 14, 2013 |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash and cash equivalents, not available for general corporate use | $ 102,900,000 | $ 70,500,000 | ||||||
Restricted cash | 143,059,000 | 121,964,000 | ||||||
Client deposit held | 8,100,000,000 | 6,100,000,000 | ||||||
Right-of-use assets | $ 1,138,157,000 | 1,092,107,000 | ||||||
Debt agreement term | 10 years | |||||||
Financing costs | $ 13,000,000 | 17,000,000 | ||||||
Write-off of financing costs on extinguished debt | 75,592,000 | 2,608,000 | $ 27,982,000 | |||||
Business promotion and advertising costs | 57,200,000 | 76,100,000 | 74,800,000 | |||||
Estimated fair value of mortgage servicing rights | 650,600,000 | 579,800,000 | ||||||
Mortgage servicing rights, impairment charges | 0 | 0 | ||||||
Servicing fees from loans serviced for others | 23,170,119,000 | 23,274,086,000 | 20,778,100,000 | |||||
Prepayment fees/late fees/ancillary income earned from loans servicing | 11,000,000 | 14,900,000 | 15,900,000 | |||||
Reserve for claims insurance programs | 140,500,000 | 125,800,000 | ||||||
Reserve for claims insurance programs, current | 2,800,000 | 1,800,000 | ||||||
Investments held in trust - special purpose acquisition company | 402,501,000 | 0 | ||||||
Non- controlling interests | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Investments held in trust - special purpose acquisition company | 402,500,000 | |||||||
Servicing fees | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Servicing fees from loans serviced for others | $ 212,900,000 | $ 191,800,000 | 167,500,000 | |||||
Wholly Owned Property | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Ownership interest in property | 100.00% | |||||||
Commercial Real Estate | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Ownership interest in property | 0.00% | |||||||
5.25% Senior Notes | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Interest rate | 5.25% | |||||||
5.25% Senior Notes | Senior Notes | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Aggregate debt redeemed | $ 425,000,000 | $ 425,000,000 | ||||||
Interest rate | 5.25% | 5.25% | ||||||
Premium paid | 73,600,000 | |||||||
Write-off of financing costs on extinguished debt | $ 2,000,000 | |||||||
5.00% Senior Notes | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Interest rate | 5.00% | |||||||
Premium paid | 20,000,000 | |||||||
Write-off of financing costs on extinguished debt | $ 8,000,000 | |||||||
5.00% Senior Notes | Senior Notes | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Aggregate debt redeemed | $ 800,000,000 | |||||||
Interest rate | 5.00% | |||||||
Premium paid | $ 20,000,000 | |||||||
Write-off of financing costs on extinguished debt | $ 8,000,000 | |||||||
2019 Credit Agreement | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Financing costs | $ 1,600,000 | |||||||
Write-off of financing costs on extinguished debt | 2,600,000 | |||||||
2019 Credit Agreement | Term Loan Facility | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Financing costs | $ 5,800,000 | |||||||
Accounting Standards Update 2016-02 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Lease liabilities | $ 1,200,000,000 | |||||||
Right-of-use assets | $ 1,000,000,000 | |||||||
Internal computer software | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, estimated useful life | three-year | |||||||
Minimum | Enterprise software development platforms | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, estimated useful life | three | |||||||
Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, estimated useful life | 10 years | |||||||
Lessee, lease term extension period | 10 years | |||||||
Maximum | Buildings and Improvements | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, estimated useful life | 39 years | |||||||
Maximum | Land Improvements | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, estimated useful life | 15 years | |||||||
Maximum | Enterprise software development platforms | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, estimated useful life | seven years | |||||||
Maximum | Goodwill and other intangible assets | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Intangible assets, estimated useful life | 20 years |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Real Estate Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Real estate under development, current (included in other current assets) | $ 55,072 | $ 14,757 |
Real estate and other assets held for sale (included in other current assets) | 3,710 | 5,066 |
Real estate under development | 277,630 | 185,508 |
Real estate held for investment (included in other assets, net) | 3,795 | 8,101 |
Total real estate | $ 340,207 | $ 213,432 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Loan Servicing Rights Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Beginning balance, mortgage servicing rights | $ 483,492 | $ 424,470 |
Mortgage servicing rights recognized | 207,827 | 182,443 |
Mortgage servicing rights sold | (122) | 0 |
Amortization expense | (134,266) | (123,008) |
Other | 0 | (413) |
Ending balance, mortgage servicing rights | $ 556,931 | $ 483,492 |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Assumptions Used in Measuring Fair Value of Servicing Assets (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Discount rate | 11.73% | 10.12% | 10.00% |
Conditional prepayment rate | 9.80% | 10.34% | 8.89% |
Telford Acquisition - Narrative
Telford Acquisition - Narrative (Details) £ / shares in Units, $ in Thousands, £ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 01, 2019USD ($) | Oct. 01, 2019GBP (£)£ / shares | |
Business Acquisition [Line Items] | |||||||||||||
Revenue | $ 6,910,501 | $ 5,645,142 | $ 5,381,384 | $ 5,889,168 | $ 7,119,407 | $ 5,925,101 | $ 5,714,073 | $ 5,135,510 | $ 23,826,195 | $ 23,894,091 | $ 21,340,088 | ||
Operating income | $ 443,896 | $ 211,408 | $ 94,165 | $ 220,290 | $ 513,841 | $ 316,630 | $ 284,417 | $ 144,987 | 969,759 | 1,259,875 | 1,087,989 | ||
Operational net income | 969,969 | 1,361,345 | 1,379,006 | ||||||||||
Direct transaction and integration costs | $ 1,756 | 15,292 | 9,124 | ||||||||||
Telford Homes | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Share price | £ / shares | £ 3,500 | ||||||||||||
Business combination, cash consideration | $ 328,500 | £ 267.1 | |||||||||||
Revenue | 97,500 | ||||||||||||
Operating income | 1,000 | ||||||||||||
Operational net income | 1,400 | ||||||||||||
Direct transaction and integration costs | 15,000 | ||||||||||||
Increased amortization expense | 1,000 | 1,500 | |||||||||||
Increased interest expense | $ 4,100 | ||||||||||||
Removal of direct costs | 15,000 | ||||||||||||
Telford Homes | Trademark | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Amortization expense | $ 400 |
Telford Acquisition - Summary o
Telford Acquisition - Summary of Excess Purchase Price Over Estimated Fair Value of Net Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 01, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Excess purchase price over fair value of net assets acquired | $ 3,821,609 | $ 3,753,493 | $ 3,652,309 | |
Telford Homes | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 328,502 | |||
Less: Final fair value of net assets acquired | 297,669 | |||
Excess purchase price over fair value of net assets acquired | $ 30,833 |
Telford Acquisition - Summary_2
Telford Acquisition - Summary of Aggregate Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - Telford Homes $ in Thousands | Oct. 01, 2019USD ($) |
Assets Acquired: | |
Cash and cash equivalents | $ 7,896 |
Receivables | 6,993 |
Contract assets, current | 31,850 |
Prepaid expenses | 2,704 |
Property and equipment | 2,637 |
Other intangible assets | 26,749 |
Operating lease assets | 6,488 |
Investments in unconsolidated subsidiaries | 79,667 |
Non-current contract assets | 8,015 |
Real estate under development | 208,402 |
Deferred tax assets, net | 2,857 |
Other assets (current and non-current) | 99,429 |
Total assets acquired | 483,687 |
Liabilities Assumed: | |
Accounts payable and accrued expenses | 47,552 |
Compensation and employee benefits payable | 1,580 |
Accrued bonus | 3,274 |
Operating lease liabilities | 941 |
Contract liabilities, current | 1,949 |
Income taxes payable | 1,813 |
Line of credit | 110,687 |
Non-current operating lease liabilities | 5,547 |
Other liabilities (current and non-current) | 12,675 |
Total liabilities assumed | 186,018 |
Fair Value of Net Assets Acquired | $ 297,669 |
Telford Acquisition - Summary_3
Telford Acquisition - Summary of Preliminary Estimate of Trademark Acquired (Details) - Telford Homes - USD ($) $ in Thousands | Oct. 01, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Amount Assigned at Acquisition Date | $ 26,749 | |
Trademark | ||
Business Acquisition [Line Items] | ||
Amortization Period | 20 years | |
Amount Assigned at Acquisition Date | $ 26,749 | |
Accumulated Amortization and Foreign Currency Translation | $ 1,725 | |
Net Carrying Value | $ 28,474 |
Telford Acquisition - Summary_4
Telford Acquisition - Summary of Pro Forma Results Prepared for Comparative Purposes (Details) - Telford Homes - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 24,158,427 | $ 21,803,506 |
Operating income | 1,294,480 | 1,157,051 |
Net income attributable to CBRE Group, Inc. | $ 1,321,097 | $ 1,121,469 |
Basic income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 3.93 | $ 3.31 |
Weighted average shares outstanding for basic income per share (in shares) | 335,795,654 | 339,321,056 |
Diluted income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 3.88 | $ 3.27 |
Weighted average shares outstanding for diluted income per share (in shares) | 340,522,871 | 343,122,741 |
Warehouse Receivables & Wareh_3
Warehouse Receivables & Warehouse Lines of Credit - Schedule of Warehouse Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |||
Beginning balance at December 31, 2019 | $ 993,058 | ||
Origination of mortgage loans | 21,268,114 | $ 19,389,979 | $ 20,591,602 |
Gains (premiums on loan sales) | 75,227 | ||
Proceeds from sale of mortgage loans: | |||
Sale of mortgage loans | (20,862,294) | ||
Cash collections of premiums on loan sales | (75,227) | ||
Proceeds from sale of mortgage loans | (20,937,521) | (19,805,060) | $ (20,230,676) |
Net increase in mortgage servicing rights included in warehouse receivables | 12,292 | ||
Ending balance at December 31, 2020 | $ 1,411,170 | $ 993,058 |
Warehouse Receivables & Wareh_4
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Details) - USD ($) | Jan. 18, 2021 | Sep. 25, 2020 | Jul. 24, 2020 | Dec. 31, 2020 | Dec. 01, 2020 | Oct. 19, 2020 | Sep. 22, 2020 | Sep. 21, 2020 | Aug. 04, 2020 | Jul. 01, 2020 | Jun. 10, 2020 | Dec. 31, 2019 | Jun. 28, 2019 |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Carrying Value | $ 1,383,964,000 | $ 977,175,000 | |||||||||||
Warehouse Agreement Borrowings | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Maximum Facility Size | 3,500,000,000 | 3,400,000,000 | |||||||||||
Carrying Value | $ 1,383,964,000 | 977,175,000 | |||||||||||
Warehouse Agreement Borrowings | JP Morgan | Pricing at daily one-month LIBOR plus 1.30%, maturing October 18, 2021 | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Current Maturity | Oct. 18, 2021 | ||||||||||||
Line of credit over LIBOR rate | 1.60% | ||||||||||||
Maximum Facility Size | $ 1,585,000,000 | $ 2,085,000,000 | $ 1,585,000,000 | 985,000,000 | |||||||||
Carrying Value | $ 561,726,000 | 267,075,000 | |||||||||||
Warehouse Agreement Borrowings | JP Morgan | Pricing at daily one-month LIBOR plus 1.30%, maturing October 18, 2021 | Subsequent Event | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Line of credit over LIBOR rate | 1.60% | ||||||||||||
Maximum Facility Size | $ 985,000,000 | ||||||||||||
Warehouse Agreement Borrowings | JP Morgan | Pricing at daily one-month LIBOR plus 2.75%, maturing October 18, 2021 | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Current Maturity | Oct. 18, 2021 | ||||||||||||
Line of credit over LIBOR rate | 2.75% | ||||||||||||
Maximum Facility Size | $ 15,000,000 | 15,000,000 | |||||||||||
Warehouse Agreement Borrowings | Capital One | Warehouse Line Of Credit Three | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Maximum Facility Size | 0 | 200,000,000 | |||||||||||
Carrying Value | $ 0 | 39,538,000 | |||||||||||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Current Maturity | Cancelableanytime | ||||||||||||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | Pricing at daily one-month LIBOR plus 1.45%, with a LIBOR floor of 0.25%, Cancelable anytime | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Line of credit over LIBOR rate | 1.45% | ||||||||||||
Line of credit, LIBOR floor rate | 0.25% | 0.25% | |||||||||||
Maximum Facility Size | $ 450,000,000 | 450,000,000 | |||||||||||
Carrying Value | $ 132,692,000 | 360,784,000 | |||||||||||
Interest rate increase (decrease) | 1000.00% | ||||||||||||
Warehouse Agreement Borrowings | T D Bank | Pricing 2-business day prior LIBOR plus 1.15%, maturing June 30, 2021 | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Current Maturity | Jun. 30, 2021 | ||||||||||||
Line of credit over LIBOR rate | 1.15% | ||||||||||||
Maximum Facility Size | $ 800,000,000 | $ 400,000,000 | 800,000,000 | ||||||||||
Carrying Value | $ 401,849,000 | 92,266,000 | |||||||||||
Line of credit utilized | $ 400,000,000 | ||||||||||||
Warehouse Agreement Borrowings | T D Bank | Warehouse Line Of Credit Five, temporary, uncommitted | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Maximum Facility Size | $ 400,000,000 | ||||||||||||
Warehouse Agreement Borrowings | Bank Of America | Pricing at (i) daily floating rate LIBOR plus 1.40%, with a LIBOR floor of 0.25% on the general facility (ii) daily floating rate LIBOR pluc 1.75% on sublimit borrowing, maturing May 26, 2021 | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Current Maturity | May 26, 2021 | ||||||||||||
Maximum Facility Size | $ 350,000,000 | 350,000,000 | |||||||||||
Carrying Value | $ 175,862,000 | 189,465,000 | |||||||||||
Warehouse Agreement Borrowings | Bank Of America | Pricing at (i) daily floating rate LIBOR plus 1.40%, with a LIBOR floor of 0.25% on the general facility (ii) daily floating rate LIBOR pluc 1.75% on sublimit borrowing, maturing May 26, 2021 | General Facility | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Line of credit over LIBOR rate | 1.40% | ||||||||||||
Line of credit, LIBOR floor rate | 0.25% | ||||||||||||
Warehouse Agreement Borrowings | Bank Of America | Pricing at (i) daily floating rate LIBOR plus 1.40%, with a LIBOR floor of 0.25% on the general facility (ii) daily floating rate LIBOR pluc 1.75% on sublimit borrowing, maturing May 26, 2021 | Sublimit Borrowing Agreement | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Line of credit over LIBOR rate | 1.75% | ||||||||||||
Maximum Facility Size | $ 100,000,000 | ||||||||||||
Warehouse Agreement Borrowings | Bank Of America | Warehouse Line Of Credit Seven | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Maximum Facility Size | 0 | 250,000,000 | |||||||||||
Carrying Value | $ 0 | 17,457,000 | |||||||||||
Warehouse Agreement Borrowings | MUFG Union Bank, N.A. (Union Bank) | Pricing at daily floating rate LIBOR plus 1.50%, maturing June 28, 2021 | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Current Maturity | Jun. 28, 2021 | ||||||||||||
Line of credit over LIBOR rate | 1.50% | ||||||||||||
Line of credit, LIBOR floor rate | 0.25% | ||||||||||||
Maximum Facility Size | $ 300,000,000 | 350,000,000 | $ 200,000,000 | ||||||||||
Carrying Value | $ 111,835,000 | $ 10,590,000 | |||||||||||
Additional line of credit | $ 100,000,000 | $ 150,000,000 | |||||||||||
Warehouse Agreement Borrowings | MUFG Union Bank, N.A. (Union Bank) | Pricing at daily floating rate LIBOR plus 1.50%, maturing June 28, 2021 | Maximum | |||||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||||
Line of credit utilized | $ 100,000,000 |
Warehouse Receivables & Wareh_5
Warehouse Receivables & Warehouse Lines of Credit - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Warehouse Agreement Borrowings | |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |
Lines of credit principal outstanding | $ 3,500,000,000 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Maximum Exposure to Loss (Details) - Non-Consolidated Variable Interest Entities - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 66,947 | $ 30,484 |
Other current assets | 4,219 | 4,307 |
Co-investment commitments | 47,957 | 29,696 |
Maximum exposure to loss | $ 119,123 | $ 64,487 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 28, 2020 | Aug. 13, 2015 | Sep. 26, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Investments in unconsolidated subsidiaries, fair value | $ 66,300,000 | $ 124,300,000 | |||||
Asset impairments | 88,676,000 | 89,787,000 | $ 0 | ||||
Goodwill impairment | $ 25,000,000 | 25,000,000 | 0 | ||||
Gain associated with remeasuring of investment in a previously unconsolidated subsidiary to fair value as of date | 0 | 0 | $ 100,420,000 | ||||
Remaining controlling interest acquired percentage | 50.00% | ||||||
Fair value of investment in unconsolidated subsidiary at acquisition date | $ 110,100,000 | ||||||
Notes payable on real estate | $ 79,600,000 | 13,100,000 | |||||
4.875% Senior Notes | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Interest rate | 4.875% | ||||||
4.875% Senior Notes | Senior Notes | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Interest rate | 4.875% | 4.875% | |||||
Senior notes | $ 594,500,000 | $ 593,600,000 | |||||
5.25% Senior Notes | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Interest rate | 5.25% | ||||||
5.25% Senior Notes | Senior Notes | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Interest rate | 5.25% | 5.25% | |||||
Senior notes | $ 423,000,000 | ||||||
Aggregate debt redeemed | $ 425,000,000 | $ 425,000,000 | |||||
Estimated Fair Value | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Senior term loans | 772,200,000 | 745,500,000 | |||||
Estimated Fair Value | 4.875% Senior Notes | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Senior notes | 702,500,000 | 670,700,000 | |||||
Estimated Fair Value | 5.25% Senior Notes | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Senior notes | 478,300,000 | ||||||
Actual Carrying Value | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Senior term loans | 785,700,000 | 744,600,000 | |||||
Actual Carrying Value | 4.875% Senior Notes | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Senior notes | 594,500,000 | 593,600,000 | |||||
Actual Carrying Value | 5.25% Senior Notes | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Senior notes | 423,000,000 | ||||||
Previously Unconsolidated Subsidiary | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Gain associated with remeasuring of investment in a previously unconsolidated subsidiary to fair value as of date | $ 100,400,000 | ||||||
Percentage of remeasuring investment in previously unconsolidated subsidiary | 50.00% | ||||||
Global Workplace Solutions | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Asset impairments | 50,200,000 | ||||||
Goodwill impairment | 0 | ||||||
Real Estate Investments | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Goodwill impairment | 25,000,000 | ||||||
Property and equipment | 13,500,000 | ||||||
Intangible asset impairment | $ 6,000,000 | $ 89,800,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 116,314 | $ 124,262 |
Warehouse receivables | 1,411,170 | 993,058 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 73,900 | 54,109 |
Equity securities | 43,334 | 51,399 |
Investments in unconsolidated subsidiaries | 50,000 | |
Warehouse receivables | 1,411,170 | 993,058 |
Total assets at fair value | 1,578,404 | 1,098,566 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 7,270 | 6,998 |
Equity securities | 43,334 | 51,399 |
Investments in unconsolidated subsidiaries | 0 | |
Warehouse receivables | 0 | 0 |
Total assets at fair value | 50,604 | 58,397 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 66,630 | 47,111 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 0 | |
Warehouse receivables | 1,411,170 | 993,058 |
Total assets at fair value | 1,477,800 | 1,040,169 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 50,000 | |
Warehouse receivables | 0 | 0 |
Total assets at fair value | 50,000 | 0 |
Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 7,270 | 6,998 |
Recurring | U.S. treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 7,270 | 6,998 |
Recurring | U.S. treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | U.S. treasury securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Debt securities issued by U.S. federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 10,216 | 10,639 |
Recurring | Debt securities issued by U.S. federal agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Debt securities issued by U.S. federal agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 10,216 | 10,639 |
Recurring | Debt securities issued by U.S. federal agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 51,244 | 29,098 |
Recurring | Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 51,244 | 29,098 |
Recurring | Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 3,801 | 5,152 |
Recurring | Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 3,801 | 5,152 |
Recurring | Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 1,369 | 2,222 |
Recurring | Collateralized mortgage obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Collateralized mortgage obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 1,369 | 2,222 |
Recurring | Collateralized mortgage obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Non-Recurring Fair Value Measurement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Net Asset (Liability) [Abstract] | ||||
Property and equipment | $ 815,009,000 | $ 836,206,000 | ||
Goodwill | 3,821,609,000 | 3,753,493,000 | $ 3,652,309,000 | |
Other intangible assets | 1,367,913,000 | 1,379,546,000 | ||
Total | 18,039,143,000 | 16,197,196,000 | ||
Asset Impairment Charges [Abstract] | ||||
Goodwill | $ 25,000,000 | 25,000,000 | 0 | |
Total | 88,676,000 | 89,787,000 | $ 0 | |
Non-recurring | ||||
Fair Value, Net Asset (Liability) [Abstract] | ||||
Property and equipment | 12,870,000 | |||
Goodwill | 443,305,000 | |||
Other intangible assets | 12,562,000 | 14,753,000 | ||
Total | 468,737,000 | |||
Asset Impairment Charges [Abstract] | ||||
Property and equipment | 29,168,000 | |||
Goodwill | 25,000,000 | |||
Other intangible assets | 34,508,000 | 89,787,000 | ||
Total | 88,676,000 | |||
Non-recurring | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Property and equipment | 0 | |||
Goodwill | 0 | |||
Other intangible assets | 0 | 0 | ||
Total assets at fair value | 0 | |||
Non-recurring | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Property and equipment | 12,870,000 | |||
Goodwill | 0 | |||
Other intangible assets | 0 | 0 | ||
Total assets at fair value | 12,870,000 | |||
Non-recurring | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Property and equipment | 0 | |||
Goodwill | 443,305,000 | |||
Other intangible assets | 12,562,000 | $ 14,753,000 | ||
Total assets at fair value | $ 455,867,000 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,889,896 | $ 1,907,104 |
Less: Accumulated depreciation and amortization | 1,074,887 | 1,070,898 |
Property and equipment, net | 815,009 | 836,206 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 974,490 | 931,891 |
Computer hardware and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 2 years | |
Computer hardware and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 554,252 | 510,917 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 15 years | |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 243,880 | 334,625 |
Furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 117,274 | $ 129,671 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 501,728 | $ 439,224 | $ 451,988 |
Property and equipment | 29,200 | ||
Property and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 268,300 | $ 207,800 | $ 192,800 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) | Jan. 01, 2019segment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)acquisition | Dec. 31, 2019USD ($)acquisition | Dec. 31, 2018USD ($)acquisition | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||||||
Global business segments | segment | 3 | |||||
Goodwill impairment | $ 25,000,000 | $ 25,000,000 | $ 0 | |||
Number of in-fill acquisitions completed | acquisition | 6 | 8 | 6 | |||
Equity interest acquired | 50.00% | |||||
Other intangible assets | $ 1,367,913,000 | $ 1,379,546,000 | $ 1,379,546,000 | |||
Other intangible assets, accumulated amortization | 1,556,537,000 | 1,358,528,000 | 1,358,528,000 | |||
Intangible assets | 2,800,228,000 | 2,612,936,000 | 2,612,936,000 | |||
Amortization expense | 227,100,000 | 225,700,000 | $ 258,700,000 | |||
Estimated annual amortization expense, 2021 | 202,400,000 | |||||
Estimated annual amortization expense, 2022 | 180,100,000 | |||||
Estimated annual amortization expense, 2023 | 156,200,000 | |||||
Estimated annual amortization expense, 2024 | 134,200,000 | |||||
Estimated annual amortization expense, 2025 | 115,600,000 | |||||
Global Workplace Solutions | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | 0 | |||||
Real Estate Investments | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | 25,000,000 | |||||
Intangible asset impairment | 6,000,000 | 89,800,000 | ||||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, accumulated amortization | $ 603,866,000 | 519,162,000 | 519,162,000 | |||
Intangible assets, amortization period | 20 years | |||||
Intangible assets | $ 880,104,000 | 857,772,000 | 857,772,000 | |||
Mortgage servicing rights | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, accumulated amortization | $ 370,634,000 | 319,927,000 | 319,927,000 | |||
Intangible assets, amortization period | 10 years | |||||
Intangible assets | $ 927,525,000 | 803,419,000 | 803,419,000 | |||
Management contracts | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, accumulated amortization | $ 145,612,000 | 138,891,000 | 138,891,000 | |||
Intangible assets, amortization period | 13 years | |||||
Intangible assets | $ 152,312,000 | 142,767,000 | 142,767,000 | |||
Amortizable trade name and customer relationships | Global Workplace Solutions | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset impairment | $ 28,500,000 | |||||
FacilitySource | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Final net purchase price | $ 266,500,000 | |||||
Cash paid to acquire business | $ 3,500,000 | $ 263,000,000 | ||||
New England Joint Venture | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Equity interest acquired | 50.00% | |||||
Telford Homes | Trademark | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, amortization period | 20 years | |||||
Intangible assets | $ 26,700,000 | |||||
Global Workplace Solutions | Trademark | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, amortization period | 20 years | |||||
Intangible assets | $ 280,000,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Changes in Goodwill by Segment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||||
goodwill, gross, beginning balance | $ 4,821,999,000 | $ 4,821,999,000 | $ 4,720,815,000 | |
Accumulated impairment losses | (1,093,506,000) | (1,068,506,000) | $ (1,068,506,000) | |
Goodwill, beginning balance | 3,753,493,000 | 3,753,493,000 | 3,652,309,000 | |
Purchase accounting entries related to acquisitions | 18,181,000 | 79,377,000 | ||
Goodwill impairment | (25,000,000) | (25,000,000) | 0 | |
Foreign exchange movement | 74,935,000 | 21,807,000 | ||
Goodwill, gross, ending balance | 4,915,115,000 | 4,821,999,000 | ||
Goodwill, ending balance | 3,821,609,000 | 3,753,493,000 | ||
Advisory Services | ||||
Goodwill [Roll Forward] | ||||
goodwill, gross, beginning balance | 3,302,218,000 | 3,302,218,000 | 3,269,954,000 | |
Accumulated impairment losses | (761,448,000) | (761,448,000) | (761,448,000) | |
Goodwill, beginning balance | 2,540,770,000 | 2,540,770,000 | 2,508,506,000 | |
Purchase accounting entries related to acquisitions | 16,463,000 | 29,544,000 | ||
Goodwill impairment | 0 | |||
Foreign exchange movement | 30,107,000 | 2,720,000 | ||
Goodwill, gross, ending balance | 3,348,788,000 | 3,302,218,000 | ||
Goodwill, ending balance | 2,587,340,000 | 2,540,770,000 | ||
Global Workplace Solutions | ||||
Goodwill [Roll Forward] | ||||
goodwill, gross, beginning balance | 899,506,000 | 899,506,000 | 875,570,000 | |
Accumulated impairment losses | (175,473,000) | (175,473,000) | (175,473,000) | |
Goodwill, beginning balance | 724,033,000 | 724,033,000 | 700,097,000 | |
Purchase accounting entries related to acquisitions | 9,702,000 | 7,657,000 | ||
Goodwill impairment | 0 | |||
Foreign exchange movement | 28,589,000 | 16,279,000 | ||
Goodwill, gross, ending balance | 937,797,000 | 899,506,000 | ||
Goodwill, ending balance | 762,324,000 | 724,033,000 | ||
Real Estate Investments | ||||
Goodwill [Roll Forward] | ||||
goodwill, gross, beginning balance | 620,275,000 | 620,275,000 | 575,291,000 | |
Accumulated impairment losses | (156,585,000) | (131,585,000) | $ (131,585,000) | |
Goodwill, beginning balance | $ 488,690,000 | 488,690,000 | 443,706,000 | |
Purchase accounting entries related to acquisitions | (7,984,000) | 42,176,000 | ||
Goodwill impairment | (25,000,000) | |||
Foreign exchange movement | 16,239,000 | 2,808,000 | ||
Goodwill, gross, ending balance | 628,530,000 | 620,275,000 | ||
Goodwill, ending balance | $ 471,945,000 | $ 488,690,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Unamortizable intangible assets: | ||
Gross Carrying Amount | $ 124,222 | $ 125,138 |
Amortizable intangible assets: | ||
Gross Carrying Amount | 2,800,228 | 2,612,936 |
Accumulated Amortization | (1,556,537) | (1,358,528) |
Gross Carrying Amount, Total intangible assets | 2,924,450 | 2,738,074 |
Management contracts | ||
Unamortizable intangible assets: | ||
Gross Carrying Amount | 67,422 | 62,338 |
Trademark | ||
Unamortizable intangible assets: | ||
Gross Carrying Amount | 56,800 | 56,800 |
Trade name | ||
Unamortizable intangible assets: | ||
Gross Carrying Amount | 0 | 6,000 |
Customer relationships | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 880,104 | 857,772 |
Accumulated Amortization | (603,866) | (519,162) |
Mortgage servicing rights | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 927,525 | 803,419 |
Accumulated Amortization | (370,634) | (319,927) |
Trademarks/Trade names | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 354,060 | 345,834 |
Accumulated Amortization | (111,595) | (92,730) |
Management contracts | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 152,312 | 142,767 |
Accumulated Amortization | (145,612) | (138,891) |
Covenant not to compete | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 73,750 | 73,750 |
Accumulated Amortization | (73,750) | (73,750) |
Other | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 412,477 | 389,394 |
Accumulated Amortization | $ (251,080) | $ (214,068) |
Investments In Unconsolidated_3
Investments In Unconsolidated Subsidiaries - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Industrious | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Non-controlling investment | $ 50 | |||
Investment management, property management, brokerage and other professional services | Real Estate Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues from unconsolidated subsidiaries | $ 145.9 | $ 97 | $ 134.3 | |
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 50.00% | 50.00% |
Investments in Unconsolidated_4
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Balance Sheet Information of Equity Method Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 8,845,631 | $ 7,534,464 |
Total Assets | 18,039,143 | 16,197,196 |
Current liabilities | 7,143,983 | 6,436,451 |
Total Liabilities | 10,533,483 | 9,924,084 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 6,508,718 | 5,407,082 |
Non-current assets | 24,343,229 | 20,414,598 |
Total Assets | 30,851,947 | 25,821,680 |
Current liabilities | 3,164,135 | 2,241,930 |
Non-current liabilities | 6,696,352 | 5,857,413 |
Total Liabilities | 9,860,487 | 8,099,343 |
Non-controlling interests | $ 460,904 | $ 461,018 |
Investments in Unconsolidated_5
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Statements of Operation Information of Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Revenue | $ 6,910,501 | $ 5,645,142 | $ 5,381,384 | $ 5,889,168 | $ 7,119,407 | $ 5,925,101 | $ 5,714,073 | $ 5,135,510 | $ 23,826,195 | $ 23,894,091 | $ 21,340,088 |
Net income | 755,868 | 1,291,450 | 1,065,948 | ||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Revenue | 2,036,818 | 1,545,424 | 1,524,685 | ||||||||
Operating income | 587,689 | 549,111 | 906,889 | ||||||||
Net income | $ 483,224 | $ 419,966 | $ 679,712 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt and Short-Term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 13, 2015 | Sep. 26, 2014 |
Long-Term Debt | ||||
Total long-term debt | $ 1,387,743 | $ 1,773,396 | ||
Less: current maturities of long-term debt | 1,514 | 1,814 | ||
Less: unamortized debt issuance costs | 6,027 | 10,337 | ||
Long-term debt, net of current maturities | 1,380,202 | 1,761,245 | ||
Short-Term Borrowings | ||||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,383,964 | 977,175 | ||
Other | 5,330 | 4,534 | ||
Total short-term borrowings | 1,389,294 | 981,709 | ||
Warehouse Agreement Borrowings | ||||
Short-Term Borrowings | ||||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | $ 1,383,964 | $ 977,175 | ||
4.875% Senior Notes | ||||
Short-Term Borrowings | ||||
Interest rate | 4.875% | |||
5.25% Senior Notes | ||||
Short-Term Borrowings | ||||
Interest rate | 5.25% | |||
Minimum | Warehouse Agreement Borrowings | ||||
Short-Term Borrowings | ||||
Interest rate | 1.65% | |||
Maximum | Warehouse Agreement Borrowings | ||||
Short-Term Borrowings | ||||
Interest rate | 2.89% | |||
Senior Secured Term Loans | ||||
Long-Term Debt | ||||
Total long-term debt | $ 788,759 | $ 748,531 | ||
Senior Secured Term Loans | Minimum | ||||
Short-Term Borrowings | ||||
Interest rate | 0.75% | |||
Senior Secured Term Loans | Maximum | ||||
Short-Term Borrowings | ||||
Interest rate | 1.15% | |||
Senior Notes | 4.875% Senior Notes | ||||
Long-Term Debt | ||||
Total long-term debt | $ 597,470 | 597,052 | ||
Short-Term Borrowings | ||||
Interest rate | 4.875% | 4.875% | ||
Senior Notes | 5.25% Senior Notes | ||||
Long-Term Debt | ||||
Total long-term debt | $ 0 | 425,952 | ||
Short-Term Borrowings | ||||
Interest rate | 5.25% | 5.25% | ||
Other | ||||
Long-Term Debt | ||||
Total long-term debt | $ 1,514 | $ 1,861 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Future Aggregate Maturities of Gross Debt Narrative (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
Future annual aggregate maturities, 2021 | $ 1,390,808 |
Future annual aggregate maturities, 2022 | 0 |
Future annual aggregate maturities, 2023 | 488,759 |
Future annual aggregate maturities, 2024 | 300,000 |
Future annual aggregate maturities, 2025 | 0 |
Future annual aggregate maturities, thereafter | $ 600,000 |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings - Long-Term Debt Narrative (Details) € in Millions | Dec. 28, 2020USD ($) | Mar. 15, 2018USD ($) | Oct. 31, 2017USD ($) | Aug. 13, 2015USD ($) | Dec. 12, 2014USD ($) | Mar. 14, 2013USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Sep. 26, 2014USD ($) | Mar. 31, 2011USD ($)swap |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from revolving credit facility | $ 835,671,000 | $ 3,609,000,000 | $ 3,258,000,000 | |||||||||
Derivative notional amount | $ 400,000,000 | |||||||||||
Unrealized gains on interest rate swaps, net of $254 income tax expense for the year ended December 31, 2018 | 0 | 0 | 708,000 | |||||||||
Write-off of financing costs on extinguished debt | $ 75,592,000 | 2,608,000 | 27,982,000 | |||||||||
Designated as Hedging Instrument | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of interest rate swap agreements entered | swap | 5 | |||||||||||
Reclassification out of accumulated other comprehensive income | Accumulated net gain (loss) from designated or qualifying cash flow hedges | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest expense | 1,200,000 | 2,700,000 | ||||||||||
Interest rate swap agreement expired on October 2017 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Derivative notional amount | $ 200,000,000 | |||||||||||
Interest rate swap agreement expiring on September 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Derivative notional amount | $ 200,000,000 | |||||||||||
Interest rate swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unrealized gains on interest rate swaps, net of $254 income tax expense for the year ended December 31, 2018 | (100,000) | 1,000,000 | ||||||||||
2019 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Write-off of financing costs on extinguished debt | 2,600,000 | |||||||||||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 200.00% | |||||||||||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 425.00% | |||||||||||
Maximum leverage ratio during first four quarter that qualified acquisition is consummated | 475.00% | |||||||||||
Coverage ratio of EBITDA to total interest expense expressed in percentage | 2622.00% | 2622.00% | ||||||||||
Leverage ratio of total debt less available cash to EBITDA expressed in percentage | (17.00%) | (17.00%) | ||||||||||
4.875% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 4.875% | 4.875% | ||||||||||
4.875% Senior Notes | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 4.875% | 4.875% | 4.875% | |||||||||
Aggregate principle amount | $ 600,000,000 | |||||||||||
Redemption price percentage | 99.24% | |||||||||||
Debt instrument, frequency of periodic payment | semi-annually | |||||||||||
Percentage of notes available for redemption | 100.00% | |||||||||||
Redemption price percentage, following change in control | 101.00% | |||||||||||
Senior notes | $ 594,500,000 | $ 593,600,000 | ||||||||||
5.25% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.25% | |||||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 125,000,000 | |||||||||||
5.25% Senior Notes | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.25% | 5.25% | 5.25% | |||||||||
Aggregate principle amount | $ 300,000,000 | |||||||||||
Senior notes | $ 423,000,000 | |||||||||||
Aggregate debt redeemed | $ 425,000,000 | $ 425,000,000 | ||||||||||
Price equal to percentage on face value | 101.50% | |||||||||||
Redemption charges | 75,600,000 | |||||||||||
Premium paid | 73,600,000 | |||||||||||
Write-off of financing costs on extinguished debt | $ 2,000,000 | |||||||||||
5.00% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.00% | |||||||||||
Premium paid | 20,000,000 | |||||||||||
Write-off of financing costs on extinguished debt | $ 8,000,000 | |||||||||||
5.00% Senior Notes | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.00% | |||||||||||
Redemption price percentage | 102.50% | |||||||||||
Debt instrument, frequency of periodic payment | semi-annually | |||||||||||
Aggregate debt redeemed | $ 800,000,000 | |||||||||||
Redemption charges | $ 28,000,000 | |||||||||||
Premium paid | 20,000,000 | |||||||||||
Write-off of financing costs on extinguished debt | 8,000,000 | |||||||||||
Tranche A Term Loan Facility | 2019 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from revolving credit facility | 550,000,000 | $ 300,000,000 | ||||||||||
Amounts available to borrow under credit agreement | $ 300,000,000 | |||||||||||
Maximum leverage ratio | 250.00% | |||||||||||
Borrowings outstanding | $ 297,900,000 | |||||||||||
Interest rate | 1.15% | 1.15% | ||||||||||
Tranche A Term Loan Facility | 2019 Credit Agreement | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit Agreement applicable fixed rate spread | 0.875% | |||||||||||
Credit Agreement applicable daily rate spread | 0.00% | |||||||||||
Tranche A Term Loan Facility | 2019 Credit Agreement | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit Agreement applicable fixed rate spread | 1.25% | |||||||||||
Credit Agreement applicable daily rate spread | 0.25% | |||||||||||
Revolving credit facility | 2019 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amounts available to borrow under credit agreement | $ 2,800,000,000 | |||||||||||
Revolving credit facility | 2019 Credit Agreement | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit Agreement applicable fixed rate spread | 0.68% | |||||||||||
Credit Agreement applicable daily rate spread | 0.00% | |||||||||||
Revolving credit facility | 2019 Credit Agreement | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit Agreement applicable fixed rate spread | 1.075% | |||||||||||
Credit Agreement applicable daily rate spread | 0.075% | |||||||||||
Revolving credit facility | 2017 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from revolving credit facility | $ 270,000,000 | |||||||||||
Euro Term Loan Facility | 2019 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior secured term loans outstanding | € | € 400 | |||||||||||
Borrowings outstanding | $ 487,700,000 | |||||||||||
Interest rate | 0.75% | 0.75% | ||||||||||
Euro Term Loan Facility | 2019 Credit Agreement | Minimum | EURIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit over LIBOR rate | 0.75% |
Long-Term Debt and Short-Term_6
Long-Term Debt and Short-Term Borrowings - Short-Term Debt Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Short-term borrowings | $ 1,389,294 | $ 981,709 |
Short-term debt, weighted average interest rate | 1.70% | 3.10% |
Long-Term Debt and Short-Term_7
Long-Term Debt and Short-Term Borrowings - Revolving Credit Facility Narrative (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Letters of credit outstanding amount | $ 154,500,000 |
Revolving credit facility | 2019 Credit Agreement | |
Debt Instrument [Line Items] | |
Amounts available to borrow under credit agreement | 2,800,000,000 |
Line of credit utilized | 0 |
Letters of credit outstanding amount | $ 2,000,000 |
Revolving credit facility | 2019 Credit Agreement | Minimum | |
Debt Instrument [Line Items] | |
Credit Agreement applicable fixed rate spread | 0.68% |
Credit Agreement applicable daily rate spread | 0.00% |
Revolving credit facility | 2019 Credit Agreement | Maximum | |
Debt Instrument [Line Items] | |
Credit Agreement applicable fixed rate spread | 1.075% |
Credit Agreement applicable daily rate spread | 0.075% |
Revolving credit facility | 2019 Credit Agreement | Canadian, Australian and New Zealand subsidiaries | |
Debt Instrument [Line Items] | |
Amounts available to borrow under credit agreement | $ 200,000,000 |
Revolving credit facility | 2019 Credit Agreement | U.K. subsidiaries | |
Debt Instrument [Line Items] | |
Amounts available to borrow under credit agreement | $ 300,000,000 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating | $ 1,020,352 | $ 997,966 |
Finance | $ 117,805 | 94,141 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |
Total leased assets | $ 1,138,157 | 1,092,107 |
Current: | ||
Operating | 208,526 | 168,663 |
Finance | $ 39,298 | 34,966 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |
Non-current: | ||
Operating | $ 1,116,795 | 1,057,758 |
Finance | $ 78,881 | 60,001 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Total lease liabilities | $ 1,443,500 | $ 1,321,388 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost [Line Items] | ||
Amortization of right-of-use assets | $ 38,568 | $ 31,081 |
Variable lease cost | 74,332 | 74,476 |
Total lease cost | 316,519 | 292,246 |
Operating, administrative and other | ||
Lease Cost [Line Items] | ||
Operating lease cost | 204,415 | 189,106 |
Interest expense | ||
Lease Cost [Line Items] | ||
Interest on lease liabilities | 1,847 | 1,317 |
Revenue | ||
Lease Cost [Line Items] | ||
Sublease income | (2,643) | (3,734) |
Cost of revenue | ||
Lease Cost [Line Items] | ||
Amortization of right-of-use assets | 32,700 | 25,500 |
Variable lease cost | 17,100 | 17,500 |
Depreciation and amortization | ||
Lease Cost [Line Items] | ||
Amortization of right-of-use assets | 5,900 | 5,600 |
Operating administration and other costs | ||
Lease Cost [Line Items] | ||
Variable lease cost | $ 55,600 | $ 57,000 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted-average remaining lease term: | ||
Operating leases | 8 years | 9 years |
Finance leases | 71 years | 3 years |
Weighted-average discount rate: | ||
Operating leases | 3.10% | 3.40% |
Finance leases | 5.00% | 2.30% |
Leases excluding assets under construction | ||
Weighted-average remaining lease term: | ||
Finance leases | 3 years | |
Weighted-average discount rate: | ||
Finance leases | 2.10% | |
Real estate under development | ||
Weighted-average discount rate: | ||
Finance lease term | 99 years |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 214,887 |
2022 | 214,895 |
2023 | 196,987 |
2024 | 177,466 |
2025 | 161,362 |
Thereafter | 551,661 |
Total remaining lease payments at December 31, 2020 | 1,517,258 |
Less: Interest | 191,937 |
Present value of lease liabilities at December 31, 2020 | 1,325,321 |
Finance Leases | |
2021 | 64,363 |
2022 | 50,225 |
2023 | 36,852 |
2024 | 19,150 |
2025 | 4,552 |
Thereafter | 364,101 |
Total remaining lease payments at December 31, 2020 | 539,243 |
Less: Interest | 421,065 |
Present value of lease liabilities at December 31, 2020 | $ 118,178 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 170,317 | $ 167,652 |
Operating cash flows from finance leases | 2,077 | 1,559 |
Financing cash flows from finance leases | 40,304 | 31,006 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 177,384 | 168,972 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 61,218 | 63,041 |
Other non-cash increases in operating lease right-of-use assets | (17,621) | 47,851 |
Other non-cash decreases in finance lease right-of-use assets | $ (1,233) | $ (1,826) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 154.5 | |
Accrued loan loss | 57.1 | $ 37 |
Assets available for recourse | 1,100 | |
Guarantees total | $ 42.1 | |
Co-investments typically range | 2.00% | |
Commitments to investment in future real estate investment | $ 76.5 | |
Commitments to investment in unconsolidated real estate subsidiary | 34.8 | |
COVID-19 Pandemic | ||
Loss Contingencies [Line Items] | ||
Advances for principal and interest | 7 | |
Reimbursement of advances for principle and interest | 5.3 | |
Warehouse Receivable | ||
Loss Contingencies [Line Items] | ||
Warehouse receivables | 694.4 | |
Funded loans subject to loss sharing arrangements | ||
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | 32,700 | |
Letters of credit outstanding | 95 | 72 |
SBL Program | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 5 | $ 5 |
Percentage of maximum original principal amount loan loss | 10.00% | |
Funded loans not subject to loss sharing arrangements | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 100 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Incentive Plans Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
May 17, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 01, 2019 | Dec. 01, 2017 | |
Time Based Vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Time-vesting awards, portion to be vested per year | 25.00% | |||||
Vesting period | 4 years | |||||
2017 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted in period under equity incentive plan | 189,499 | |||||
Shares cancelled under equity incentive plan | 575,506 | |||||
Shares withheld for payment of taxes | 215,900 | |||||
2019 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2019 Equity Incentive Plan | Class A common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 10,501,907 | 9,900,000 | ||||
RSUs | Performance Based Vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
RSUs | Time Based Vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 1,150,761 | 1,493,788 | 1,332,085 | |||
Percentage of target restricted stock unit | 33.30% | |||||
RSUs | Total Shareholder Return | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of target restricted stock unit | 33.30% | |||||
Measurement period | 6 years | |||||
Number of trading days required for purposes of measuring shareholder return based on average closing price of common stock immediately preceding grant date | 60 days | |||||
RSUs | Earnings Per Share Performance | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of target restricted stock unit | 33.30% | |||||
Measurement period | 6 years | |||||
RSUs | Maximum | Performance Based Vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 910,346 | 888,726 | 1,014,269 | |||
RSUs | 2012 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 310,023 | |||||
RSUs | 2017 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for future issuance | 4,677,453 | |||||
RSUs | 2017 Equity Incentive Plan | Time Based Vesting | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 55,973 | 939,605,000 | ||||
RSUs | 2017 Equity Incentive Plan | Maximum | Performance Based Vesting | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 195,907 | 3,288,618,000 | ||||
Stock Options | 2019 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 6,265,195 | |||||
Non-Vested Stock Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense related to non-vested awards | $ 60.4 | $ 127.7 | $ 128.2 | |||
Unrecognized estimated compensation cost | $ 121.1 | |||||
Weighted average period of recognition | 2 years 7 months 6 days |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Fair Value of TSR Performance RSUs (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Volatility of common stock | 25.96% | 25.02% |
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.12% | 2.73% |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Non-Vested Stock Awards (Details) - Non-Vested Stock Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares/Units | |||
Beginning balance (in shares) | 7,709,699 | 7,182,360 | 7,677,102 |
Granted (in shares) | 1,605,934 | 2,000,977 | 2,023,266 |
Performance award achievement adjustments (in shares) | 560,563 | 166,007 | 282,953 |
Vested (in shares) | (2,780,377) | (1,323,351) | (2,177,800) |
Forfeited (in shares) | (412,407) | (316,294) | (623,161) |
Ending balance (in shares) | 6,683,412 | 7,709,699 | 7,182,360 |
Weighted Average Market Value Per Share | |||
Beginning balance (in USD per share) | $ 43.89 | $ 41.04 | $ 37.76 |
Granted (in USD per share) | 56.45 | 50.07 | 45.70 |
Performance award achievement adjustments (in USD per share) | 39.89 | 37.36 | 38.09 |
Vested (in USD per share) | 39.81 | 37.43 | 34.78 |
Forfeited (in USD per share) | 48.27 | 42.09 | 40.85 |
Ending balance (in USD per share) | $ 47.99 | $ 43.89 | $ 41.04 |
Employee Benefit Plans - Bonuse
Employee Benefit Plans - Bonuses Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Defined benefit plan | $ 557.6 | $ 554.6 | $ 595.2 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Plan Narrative (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Minimum annual employee contribution, percent | 1.00% | ||
Maximum annual employee contribution, percent | 75.00% | ||
Company contribution percent per year employed | 20.00% | ||
Defined contribution plan, expenses recognized | $ 83,500,000 | $ 59,900,000 | $ 46,300,000 |
Percent of 401(k) that can be invested in common stock | 25.00% | ||
Number of share held as investment under 401(k) Plan | 1.2 | ||
Annual Base Salary of Less than $100,000 | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of annual compensation match percentage | 67.00% | 67.00% | 67.00% |
Percent of annual compensation to be matched | 6.00% | 6.00% | 6.00% |
Defined benefit plan, annual compensation expense maximum | $ 100,000 | $ 100,000 | $ 100,000 |
Annual Base Salary of $100,000 or Up to $150,000 | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of annual compensation match percentage | 50.00% | 50.00% | 50.00% |
Percent of annual compensation to be matched | 6.00% | 6.00% | 6.00% |
Defined benefit plan, annual compensation expense maximum | $ 150,000 | $ 150,000 | $ 150,000 |
Defined benefit plan, annual compensation expense minimum | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Plans Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)pensionPlan | Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 403,500 | $ 351,800 |
Benefit obligation | 558,400 | 509,400 |
Items not yet recognized as net periodic pension cost (benefit) | 165,900 | 191,600 |
Loss on plan obligations | 27,700 | |
Net actuarial loss due to assumption changes | 37,100 | |
Net gains due to plan experience | $ 9,500 | |
Number of Defined Benefit Plans | pensionPlan | 2 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 378,900 | 331,400 |
Benefit obligation | 470,100 | 439,400 |
Unfunded status of plan | $ 91,200 | $ 108,000 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plans Located within Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 403,500 | $ 351,800 |
Benefit obligation | 558,400 | 509,400 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 378,900 | 331,400 |
Benefit obligation | 470,100 | 439,400 |
Pension Plan | Other assets, net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 58,410 | 25,469 |
Pension Plan | Other current liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | 19,432 | 12,144 |
Pension Plan | Other liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | $ 135,440 | $ 145,432 |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2021 | $ 38,941 |
2022 | 35,804 |
2023 | 37,877 |
2024 | 39,655 |
2025 | 40,888 |
2026 - 2030 | $ 216,678 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 470,181 | $ 839,899 | $ 807,590 |
Foreign | 499,788 | 521,446 | 571,416 |
Income before provision for income taxes | $ 969,969 | $ 1,361,345 | $ 1,379,006 |
Income Taxes - Tax Provision (B
Income Taxes - Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ 18,951 | $ (51,980) | $ 166,024 |
Federal, Deferred | 61,034 | (74,432) | (7,667) |
Federal, Total | 79,985 | (126,412) | 158,357 |
State, Current | 33,291 | 52,403 | 43,320 |
State, Deferred | 3,872 | (5,760) | (3,692) |
State, Total | 37,163 | 46,643 | 39,628 |
Foreign, Current | 88,994 | 163,833 | 149,194 |
Foreign, Deferred | 7,959 | (14,169) | (34,121) |
Foreign, Total | 96,953 | 149,664 | 115,073 |
Tax Provision (Benefit), Total | $ 214,101 | $ 69,895 | $ 313,058 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Pre-Tax Income (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% |
Foreign rate differential | 0.00% | 4.00% | 0.00% |
State taxes, net of federal benefit | 3.00% | 3.00% | 3.00% |
Non-deductible expenses | 1.00% | 1.00% | 2.00% |
Reserves for uncertain tax positions | 0.00% | 1.00% | 0.00% |
Credits and exemptions | (2.00%) | (4.00%) | (2.00%) |
Outside basis differences recognized as a result of a legal entity restructuring | 0.00% | (20.00%) | 0.00% |
Tax Reform | 0.00% | 0.00% | 1.00% |
Change in valuation allowance | 0.00% | 0.00% | (1.00%) |
Acquisition-related costs | 0.00% | 0.00% | (2.00%) |
Other | (1.00%) | (1.00%) | 1.00% |
Effective tax rate | 22.00% | 5.00% | 23.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||||
Net tax benefit attributable to outside basis differences recognized on legal entity restructuring | $ 277,200,000 | ||||
Tax cuts and jobs act provisional income tax expense benefit | $ 158,000,000 | ||||
Income tax benefit remeasurement of deferred tax assets and liabilities | $ 14,600,000 | ||||
Provision for income taxes attributable to tax act | $ 13,300,000 | ||||
Payment of transition tax in annual interest-free installments period | 8 years | ||||
Tax liability transition tax payable | 93,647,000 | $ 54,761,000 | $ 93,647,000 | ||
Deferred tax liabilities operating lease assets | 314,433,000 | 366,671,000 | 314,433,000 | ||
Federal net operating losses, deferred tax asset before valuation allowance | 1,800,000 | ||||
Deferred tax assets before valuation allowances for state NOLs | 300,200,000 | ||||
Deferred tax assets that do not satisfy realization criteria | 251,922,000 | 291,096,000 | 251,922,000 | ||
Undistributed earnings | 3,000,000,000 | ||||
Additional undistributed foreign earnings | 0 | ||||
Unrecognized tax benefits | 141,164,000 | 168,516,000 | 141,164,000 | 94,962,000 | |
Unrecognized tax benefits that would affect our effective tax rate | 44,500,000 | 54,900,000 | 44,500,000 | ||
Unrecognized tax benefits that would affect our effective tax rate, net of federal benefits received | 42,700,000 | 52,300,000 | 42,700,000 | ||
Additional interest and penalties accrued | 400,000 | 300,000 | $ 600,000 | ||
Liability for interest and penalties | 3,800,000 | 1,600,000 | 3,800,000 | ||
Interest expense | 3,100,000 | 1,300,000 | 3,100,000 | ||
Expiration of Federal Statute Limitations 2016 Tax Year | |||||
Income Tax [Line Items] | |||||
Gross unrecognized tax benefits released | 11,800,000 | ||||
Income tax benefits related to decreases in tax positions | 8,400,000 | ||||
Income tax benefits related to interest and penalties | 3,400,000 | ||||
Foreign NOLs | Luxembourg | |||||
Income Tax [Line Items] | |||||
Increase (decrease) in valuation allowance | 39,200,000 | ||||
State | |||||
Income Tax [Line Items] | |||||
Tax liability transition tax payable | 54,800,000 | ||||
Federal | |||||
Income Tax [Line Items] | |||||
Net operating loss carryforwards | $ 320,300,000 | 8,800,000 | $ 320,300,000 | ||
Federal net capital losses, deferred tax asset before valuation allowance | $ 28,400,000 | ||||
Operating loss carryforward, expiration period begins | 2037 | ||||
Federal | Capital Loss Carryforward | |||||
Income Tax [Line Items] | |||||
Capital loss carryforward | $ 135,200,000 |
Income Taxes - Temporary Tax Ef
Income Taxes - Temporary Tax Effects (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Asset (Liability) | ||
Tax losses and tax credits | $ 334,303 | $ 330,839 |
Operating lease liabilities | 358,066 | 320,261 |
Bonus and deferred compensation | 295,690 | 280,747 |
Bad debt and other reserves | 73,061 | 66,504 |
Pension obligation | 18,026 | 24,022 |
Investments | 17,506 | 5,236 |
Tax effect on revenue items related to Topic 606 adoption | (16,784) | (25,620) |
Property and equipment | (88,595) | (54,370) |
Unconsolidated affiliates and partnerships | (59,544) | (63,594) |
Capitalized costs and intangibles | (313,099) | (277,246) |
Operating lease assets | (366,671) | (314,433) |
All other | 6,181 | |
All other | (1,153) | |
Net deferred tax assets before valuation allowance | 258,140 | 291,193 |
Valuation allowance | (291,096) | (251,922) |
Net deferred tax (liabilities) | $ (32,956) | |
Net deferred tax assets | $ 39,271 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance, unrecognized tax benefits | $ (141,164) | $ (94,962) |
Gross increases - tax positions in prior period | (31,070) | (22,229) |
Gross decreases - tax positions in prior period | 1,530 | 17,390 |
Gross increases - current-period tax positions | (9,688) | (45,262) |
Decreases relating to settlements | 0 | 218 |
Reductions as a result of lapse of statute of limitations | 11,791 | 3,680 |
Foreign exchange movement | 85 | 1 |
Ending balance, unrecognized tax benefits | $ (168,516) | $ (141,164) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Nov. 30, 2019 | Aug. 31, 2019 | |
Equity [Line Items] | |||||||
Preferred stock authorized (in shares) | 25,000,000 | ||||||
Preferred stock issued (in shares) | 0 | 0 | |||||
Class A common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | |||||
Class A common stock issued (in shares) | 335,561,345 | 334,752,283 | |||||
Class A common stock outstanding (in shares) | 335,561,345 | 334,752,283 | |||||
Shares repurchased during the period, value | $ 50,028,000 | $ 145,137,000 | $ 161,034,000 | ||||
Capacity remaining under current stock repurchase program | $ 350,000,000 | ||||||
2016 Program | |||||||
Equity [Line Items] | |||||||
Authorized share repurchase term | 3 years | ||||||
2019 Program | |||||||
Equity [Line Items] | |||||||
Authorized share repurchase term | 3 years | ||||||
Class A common stock | |||||||
Equity [Line Items] | |||||||
Class A common stock, shares authorized (in shares) | 525,000,000 | 525,000,000 | |||||
Class A common stock, par value (in USD per share) | $ 0.01 | ||||||
Class A common stock issued (in shares) | 335,561,345 | 334,752,283 | |||||
Class A common stock outstanding (in shares) | 335,561,345 | ||||||
Shares repurchased during the period, value | $ 11,000 | $ 31,000 | $ 40,000 | ||||
Repurchase of common stock (in shares) | 1,050,084 | 3,080,907 | 3,980,656 | ||||
Class A common stock | 2016 Program | |||||||
Equity [Line Items] | |||||||
Authorized share repurchase amount | $ 250,000,000 | ||||||
Shares repurchased during the period, value | $ 45,100,000 | $ 161,000,000 | |||||
Repurchase of common stock (in shares) | 1,144,449 | 3,980,656 | |||||
Average price per share (in USD per share) | $ 39.38 | $ 40.43 | |||||
Class A common stock | 2019 Program | |||||||
Equity [Line Items] | |||||||
Authorized share repurchase amount | $ 300,000,000 | $ 500,000,000 | |||||
Shares repurchased during the period, value | $ 50,000,000 | $ 100,000,000 | |||||
Repurchase of common stock (in shares) | 1,050,084 | 1,936,458 | |||||
Average price per share (in USD per share) | $ 47.62 | $ 51.64 | |||||
Authorized share additional repurchase amount | $ 100,000,000 | $ 100,000,000 |
Income Per Share Information -
Income Per Share Information - Calculation of Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic Income Per Share | |||||||||||
Net income attributable to CBRE Group, Inc. stockholders | $ 313,765 | $ 184,132 | $ 81,897 | $ 172,195 | $ 637,618 | $ 256,599 | $ 223,731 | $ 164,409 | $ 751,989 | $ 1,282,357 | $ 1,063,219 |
Weighted average shares outstanding for basic income per share (in shares) | 335,397,942 | 335,287,245 | 335,126,126 | 334,969,826 | 334,745,003 | 336,203,747 | 336,222,471 | 336,020,431 | 335,196,296 | 335,795,654 | 339,321,056 |
Basic income per share attributable to CBRE Group, Inc. shareholders (in USD per share) | $ 0.94 | $ 0.55 | $ 0.24 | $ 0.51 | $ 1.90 | $ 0.76 | $ 0.67 | $ 0.49 | $ 2.24 | $ 3.82 | $ 3.13 |
Diluted Income Per Share | |||||||||||
Net income attributable to CBRE Group, Inc. stockholders | $ 313,765 | $ 184,132 | $ 81,897 | $ 172,195 | $ 637,618 | $ 256,599 | $ 223,731 | $ 164,409 | $ 751,989 | $ 1,282,357 | $ 1,063,219 |
Weighted average shares outstanding for basic income per share (in shares) | 335,397,942 | 335,287,245 | 335,126,126 | 334,969,826 | 334,745,003 | 336,203,747 | 336,222,471 | 336,020,431 | 335,196,296 | 335,795,654 | 339,321,056 |
Dilutive effect of contingently issuable shares (in shares) | 3,195,914 | 4,727,217 | 3,801,293 | ||||||||
Dilutive effect of stock options (in shares) | 0 | 0 | 392 | ||||||||
Weighted average shares outstanding for diluted income per share (in shares) | 338,799,615 | 337,665,848 | 337,361,419 | 339,737,911 | 340,333,005 | 341,100,182 | 340,508,931 | 340,158,399 | 338,392,210 | 340,522,871 | 343,122,741 |
Diluted income per share attributable to CBRE Group, Inc. shareholders (in USD per share) | $ 0.93 | $ 0.55 | $ 0.24 | $ 0.51 | $ 1.87 | $ 0.75 | $ 0.66 | $ 0.48 | $ 2.22 | $ 3.77 | $ 3.10 |
Income Per Share Information _2
Income Per Share Information - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Contingently Issuable Shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded in computation of diluted income per share (in shares) | 567,589 | 374,555 | 259,274 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 23,170,119 | $ 23,274,086 | $ 20,778,100 | ||||||||
Total Out of Scope of Topic 606 Revenue | 656,076 | 620,005 | 561,988 | ||||||||
Total revenue | $ 6,910,501 | $ 5,645,142 | $ 5,381,384 | $ 5,889,168 | $ 7,119,407 | $ 5,925,101 | $ 5,714,073 | $ 5,135,510 | 23,826,195 | 23,894,091 | 21,340,088 |
Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 7,058,120 | 8,471,939 | 7,878,014 | ||||||||
Total Out of Scope of Topic 606 Revenue | 640,872 | 597,529 | 561,988 | ||||||||
Total revenue | 7,698,992 | 9,069,468 | 8,440,002 | ||||||||
Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 15,295,673 | 14,164,001 | 12,365,362 | ||||||||
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 | ||||||||
Total revenue | 15,295,673 | 14,164,001 | 12,365,362 | ||||||||
Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 816,326 | 638,146 | 534,724 | ||||||||
Total Out of Scope of Topic 606 Revenue | 15,204 | 22,476 | 0 | ||||||||
Total revenue | 831,530 | 660,622 | 534,724 | ||||||||
Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 15,295,673 | 14,164,001 | 12,365,362 | ||||||||
Global Workplace Solutions | Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Global Workplace Solutions | Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 15,295,673 | 14,164,001 | 12,365,362 | ||||||||
Global Workplace Solutions | Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Advisory leasing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,404,273 | 3,269,993 | 3,080,117 | ||||||||
Advisory leasing | Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,404,273 | 3,269,993 | 3,080,117 | ||||||||
Advisory leasing | Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Advisory leasing | Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Advisory sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,658,702 | 2,130,979 | 1,980,932 | ||||||||
Advisory sales | Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,658,702 | 2,130,979 | 1,980,932 | ||||||||
Advisory sales | Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Advisory sales | Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Property and advisory project management | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,204,263 | 2,255,398 | 2,057,433 | ||||||||
Property and advisory project management | Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,204,263 | 2,255,398 | 2,057,433 | ||||||||
Property and advisory project management | Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | |||||||||
Property and advisory project management | Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | |||||||||
Valuation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 614,307 | 630,399 | 598,806 | ||||||||
Valuation | Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 614,307 | 630,399 | 598,806 | ||||||||
Valuation | Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Valuation | Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Commercial mortgage origination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 130,883 | 154,227 | 136,534 | ||||||||
Total Out of Scope of Topic 606 Revenue | 446,968 | 421,736 | 402,814 | ||||||||
Commercial mortgage origination | Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 130,883 | 154,227 | 136,534 | ||||||||
Total Out of Scope of Topic 606 Revenue | 446,968 | 421,736 | 402,814 | ||||||||
Commercial mortgage origination | Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 | ||||||||
Commercial mortgage origination | Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 | ||||||||
Loan servicing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 45,692 | 30,943 | 24,192 | ||||||||
Total Out of Scope of Topic 606 Revenue | 193,904 | 175,793 | 159,174 | ||||||||
Loan servicing | Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 45,692 | 30,943 | 24,192 | ||||||||
Total Out of Scope of Topic 606 Revenue | 193,904 | 175,793 | 159,174 | ||||||||
Loan servicing | Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 | ||||||||
Loan servicing | Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 | ||||||||
Investment management | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 474,939 | 424,882 | 434,405 | ||||||||
Investment management | Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Investment management | Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Investment management | Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 474,939 | 424,882 | 434,405 | ||||||||
Development services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 341,387 | 213,264 | 100,319 | ||||||||
Total Out of Scope of Topic 606 Revenue | 15,204 | 22,476 | |||||||||
Development services | Advisory Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Total Out of Scope of Topic 606 Revenue | 0 | 0 | |||||||||
Development services | Global Workplace Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Total Out of Scope of Topic 606 Revenue | 0 | 0 | |||||||||
Development services | Real Estate Investments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 341,387 | 213,264 | $ 100,319 | ||||||||
Total Out of Scope of Topic 606 Revenue | $ 15,204 | $ 22,476 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 471,800 | $ 529,800 | |
Contract assets, current | 318,191 | 328,012 | |
Increase in contract assets | (58,000) | ||
Contract liabilities | 164,100 | 115,000 | |
Contract liabilities, current | 162,045 | 108,671 | |
Recognized revenue included in contract liability | 80,000 | ||
Capitalized contract cost | 64,200 | 69,300 | $ 45,700 |
Capitalized contract cost, amortization of transaction cost | $ 46,900 | $ 32,300 | $ 23,400 |
Segments - Narrative (Details)
Segments - Narrative (Details) | Jan. 01, 2019segment |
Segment Reporting [Abstract] | |
Global business segments | 3 |
Segments - Summarized Financial
Segments - Summarized Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 6,910,501 | $ 5,645,142 | $ 5,381,384 | $ 5,889,168 | $ 7,119,407 | $ 5,925,101 | $ 5,714,073 | $ 5,135,510 | $ 23,826,195 | $ 23,894,091 | $ 21,340,088 |
Depreciation and amortization | 501,728 | 439,224 | 451,988 | ||||||||
Equity income from unconsolidated subsidiaries | 126,161 | 160,925 | 324,664 | ||||||||
Adjusted EBITDA | 1,892,385 | 2,063,783 | 1,905,168 | ||||||||
Advisory Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 7,698,992 | 9,069,468 | 8,440,002 | ||||||||
Depreciation and amortization | 348,669 | 304,766 | 280,921 | ||||||||
Equity income from unconsolidated subsidiaries | 2,245 | 6,894 | 16,017 | ||||||||
Adjusted EBITDA | 1,143,889 | 1,465,792 | 1,303,251 | ||||||||
Global Workspace Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 15,295,673 | 14,164,001 | 12,365,362 | ||||||||
Depreciation and amortization | 125,692 | 120,975 | 147,222 | ||||||||
Equity income from unconsolidated subsidiaries | 368 | (1,423) | 115 | ||||||||
Adjusted EBITDA | 516,814 | 424,026 | 345,560 | ||||||||
Real Estate Investments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 831,530 | 660,622 | 534,724 | ||||||||
Depreciation and amortization | 27,367 | 13,483 | 23,845 | ||||||||
Equity income from unconsolidated subsidiaries | 123,548 | 155,454 | 308,532 | ||||||||
Adjusted EBITDA | $ 231,682 | $ 173,965 | $ 256,357 |
Segments - Adjusted EBITDA Calc
Segments - Adjusted EBITDA Calculation by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Net income attributable to CBRE Group, Inc. | $ 313,765 | $ 184,132 | $ 81,897 | $ 172,195 | $ 637,618 | $ 256,599 | $ 223,731 | $ 164,409 | $ 751,989 | $ 1,282,357 | $ 1,063,219 |
Depreciation and amortization | 501,728 | 439,224 | 451,988 | ||||||||
Asset impairments | 88,676 | 89,787 | 0 | ||||||||
Interest expense, net of interest income | 67,753 | 85,754 | 98,685 | ||||||||
Write-off of financing costs on extinguished debt | 75,592 | 2,608 | 27,982 | ||||||||
Provision for income taxes | 214,101 | 69,895 | 313,058 | ||||||||
EBITDA | 1,699,839 | 1,969,625 | 1,954,932 | ||||||||
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in the period | 11,598 | 9,301 | 0 | ||||||||
Costs incurred related to legal entity restructuring | 9,362 | 6,899 | 0 | ||||||||
Integration and other costs related to acquisitions | 1,756 | 15,292 | 9,124 | ||||||||
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue | (22,912) | 13,101 | (5,261) | ||||||||
Costs incurred in connection with litigation settlement | 0 | 0 | 8,868 | ||||||||
One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired | 0 | 0 | (100,420) | ||||||||
Adjusted EBITDA | 1,892,385 | 2,063,783 | 1,905,168 | ||||||||
Cost of revenues | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 42,100 | ||||||||||
Operating, administrative and other expenses | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 113,000 | ||||||||||
Transformation Initiatives | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 175,840 | ||||||||||
Transformation Initiatives | Employee separation benefits, lease termination costs and professional fees | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 155,148 | 0 | 0 | ||||||||
Transformation Initiatives | Employee separation benefits | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 91,077 | ||||||||||
2020 Covid-19 Response | Employee separation benefits | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 37,594 | 0 | 0 | ||||||||
2020 Covid-19 Response | Employee separation benefits | Cost of revenues | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 7,400 | ||||||||||
2020 Covid-19 Response | Employee separation benefits | Operating, administrative and other expenses | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 30,200 | ||||||||||
2018 Reorganization Plan | Employee separation benefits | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $ 0 | $ 49,565 | $ 37,925 |
Segments - Summary of Geographi
Segments - Summary of Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 6,910,501 | $ 5,645,142 | $ 5,381,384 | $ 5,889,168 | $ 7,119,407 | $ 5,925,101 | $ 5,714,073 | $ 5,135,510 | $ 23,826,195 | $ 23,894,091 | $ 21,340,088 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 13,472,013 | 13,852,018 | 12,264,188 | ||||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 3,083,810 | 2,972,704 | 2,586,890 | ||||||||
All other countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 7,270,372 | $ 7,069,369 | $ 6,489,010 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Employees Other Than Executive Officers - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Loans to related parties | $ 424.2 | $ 416.7 |
Maximum | ||
Related Party Transaction [Line Items] | ||
Related party transaction, rate | 3.25% |
Transformation Initiatives - Su
Transformation Initiatives - Summary of Transformation Initiative Costs (Details) - Transformation Initiatives - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | $ 175,840 | ||
Employee separation benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 91,077 | ||
Lease termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 47,811 | ||
Professional fees and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 16,260 | ||
Depreciation expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 20,692 | ||
Subtotal | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 155,148 | $ 0 | $ 0 |
Advisory Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 128,171 | ||
Advisory Services | Employee separation benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 57,550 | ||
Advisory Services | Lease termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 43,225 | ||
Advisory Services | Professional fees and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 13,212 | ||
Advisory Services | Depreciation expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 14,184 | ||
Advisory Services | Subtotal | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 113,987 | ||
Global Workplace Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 38,345 | ||
Global Workplace Solutions | Employee separation benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 31,083 | ||
Global Workplace Solutions | Lease termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 4,586 | ||
Global Workplace Solutions | Professional fees and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 2,510 | ||
Global Workplace Solutions | Depreciation expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 166 | ||
Global Workplace Solutions | Subtotal | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 38,179 | ||
Real Estate Investments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 9,324 | ||
Real Estate Investments | Employee separation benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 2,444 | ||
Real Estate Investments | Lease termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 0 | ||
Real Estate Investments | Professional fees and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 538 | ||
Real Estate Investments | Depreciation expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 6,342 | ||
Real Estate Investments | Subtotal | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | $ 2,982 |
Transformation Initiatives - Na
Transformation Initiatives - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Cost of revenues | |
Restructuring Cost and Reserve [Line Items] | |
Total transformation initiative costs | $ 42.1 |
Operating, administrative and other expenses | |
Restructuring Cost and Reserve [Line Items] | |
Total transformation initiative costs | $ 113 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - Industrious - USD ($) $ in Millions | Feb. 23, 2021 | Feb. 19, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | |||
Non-controlling investment | $ 50 | ||
Forecast | |||
Subsequent Event [Line Items] | |||
Cumulative percentage of ownership after all transactions | 40.00% | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Non-controlling investment | $ 150 | ||
Interest held, percent | 35.00% |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 6,910,501 | $ 5,645,142 | $ 5,381,384 | $ 5,889,168 | $ 7,119,407 | $ 5,925,101 | $ 5,714,073 | $ 5,135,510 | $ 23,826,195 | $ 23,894,091 | $ 21,340,088 |
Operating income | 443,896 | 211,408 | 94,165 | 220,290 | 513,841 | 316,630 | 284,417 | 144,987 | 969,759 | 1,259,875 | 1,087,989 |
Net income attributable to CBRE Group, Inc. stockholders | $ 313,765 | $ 184,132 | $ 81,897 | $ 172,195 | $ 637,618 | $ 256,599 | $ 223,731 | $ 164,409 | $ 751,989 | $ 1,282,357 | $ 1,063,219 |
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 0.94 | $ 0.55 | $ 0.24 | $ 0.51 | $ 1.90 | $ 0.76 | $ 0.67 | $ 0.49 | $ 2.24 | $ 3.82 | $ 3.13 |
Weighted average shares outstanding for basic income per share (in shares) | 335,397,942 | 335,287,245 | 335,126,126 | 334,969,826 | 334,745,003 | 336,203,747 | 336,222,471 | 336,020,431 | 335,196,296 | 335,795,654 | 339,321,056 |
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 0.93 | $ 0.55 | $ 0.24 | $ 0.51 | $ 1.87 | $ 0.75 | $ 0.66 | $ 0.48 | $ 2.22 | $ 3.77 | $ 3.10 |
Weighted average shares outstanding for diluted income per share (in shares) | 338,799,615 | 337,665,848 | 337,361,419 | 339,737,911 | 340,333,005 | 341,100,182 | 340,508,931 | 340,158,399 | 338,392,210 | 340,522,871 | 343,122,741 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 72,725 | $ 60,348 | $ 46,789 |
Additions: Charges to expense | 47,240 | 20,373 | 19,760 |
Deductions: Write-offs, payments and other | 24,432 | 7,996 | 6,201 |
Ending balance | $ 95,533 | $ 72,725 | $ 60,348 |