Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 17, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 | $ 27.8 | ||
Entity Common Stock, Shares Outstanding | 332,322,579 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the registrant’s 2022 Annual Meeting of Stockholders to be held May 18, 2022 are incorporated by reference in Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001138118 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Los Angeles, California |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 2,430,951 | $ 1,896,188 |
Restricted cash | 108,830 | 143,059 |
Receivables, less allowance for doubtful accounts of $97,588 and $95,533 at December 31, 2021 and 2020, respectively | 5,150,473 | 4,394,954 |
Warehouse receivables | 1,303,717 | 1,411,170 |
Contract assets | 338,749 | 318,191 |
Prepaid expenses | 333,885 | 294,992 |
Income taxes receivable | 44,104 | 93,756 |
Other current assets | 371,656 | 293,321 |
Total Current Assets | 10,082,365 | 8,845,631 |
Property and equipment, net of accumulated depreciation and amortization of $1,288,509 and $1,074,887 at December 31, 2021 and 2020, respectively | 816,092 | 815,009 |
Goodwill | 4,995,175 | 3,821,609 |
Other intangible assets, net of accumulated amortization of $1,725,280 and $1,556,537 at December 31, 2021 and 2020, respectively | 2,409,427 | 1,367,913 |
Operating lease assets | 1,046,377 | 1,020,352 |
Investments in unconsolidated subsidiaries (with $813,031 and $116,314 at fair value at December 31, 2021 and 2020, respectively) | 1,196,088 | 452,365 |
Non-current contract assets | 135,626 | 153,636 |
Real estate under development | 326,416 | 277,630 |
Non-current income taxes receivable | 33,150 | 43,555 |
Deferred tax assets, net | 157,032 | 91,529 |
Investments held in trust - special purpose acquisition company | 0 | 402,501 |
Other assets, net | 875,743 | 747,413 |
Total Assets | 22,073,491 | 18,039,143 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 2,916,331 | 2,692,939 |
Compensation and employee benefits payable | 1,539,291 | 1,287,383 |
Accrued bonus and profit sharing | 1,694,590 | 1,183,786 |
Operating lease liabilities | 232,423 | 208,526 |
Contract liabilities | 280,659 | 162,045 |
Income taxes payable | 246,035 | 57,892 |
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,277,451 | 1,383,964 |
Other short-term borrowings | 32,668 | 5,330 |
Current maturities of long-term debt | 0 | 1,514 |
Other current liabilities | 199,421 | 160,604 |
Total Current Liabilities | 8,418,869 | 7,143,983 |
Long-term debt, net of current maturities | 1,538,123 | 1,380,202 |
Non-current operating lease liabilities | 1,116,562 | 1,116,795 |
Non-current income taxes payable | 54,761 | 54,761 |
Non-current tax liabilities | 144,884 | 87,954 |
Deferred tax liabilities, net | 405,258 | 124,485 |
Other liabilities | 1,035,917 | 625,303 |
Total Liabilities | 12,714,374 | 10,533,483 |
Commitments and contingencies | 0 | 0 |
Non-controlling interest subject to possible redemption - special purpose acquisition company | 0 | 385,573 |
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock; $0.01 par value; 525,000,000 shares authorized; 332,875,959 and 335,561,345 shares issued and outstanding at December 31, 2021 and 2020, respectively | 3,329 | 3,356 |
Additional paid-in capital | 798,892 | 1,074,639 |
Accumulated earnings | 8,366,631 | 6,530,057 |
Accumulated other comprehensive loss | (640,659) | (529,726) |
Total CBRE Group, Inc. Stockholders’ Equity | 8,528,193 | 7,078,326 |
Non-controlling interests | 830,924 | 41,761 |
Total Equity | 9,359,117 | 7,120,087 |
Total Liabilities and Equity | $ 22,073,491 | $ 18,039,143 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 95,533 | $ 97,588 |
Property and equipment, accumulated depreciation and amortization | 1,288,509 | 1,074,887 |
Other intangible assets, accumulated amortization | 1,725,280 | 1,556,537 |
Investments in unconsolidated entities, fair value | $ 813,031 | $ 116,314 |
Class A common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Class A common stock, shares authorized (in shares) | 525,000,000 | 525,000,000 |
Class A common stock issued (in shares) | 332,875,959 | 335,561,345 |
Class A common stock outstanding (in shares) | 332,875,959 | 335,561,345 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 27,746,036 | $ 23,826,195 | $ 23,894,091 |
Costs and expenses: | |||
Cost of revenue | 21,579,507 | 19,047,620 | 18,689,013 |
Operating, administrative and other | 4,074,184 | 3,306,205 | 3,436,009 |
Depreciation and amortization | 525,871 | 501,728 | 439,224 |
Asset impairments | 0 | 88,676 | 89,787 |
Total costs and expenses | 26,179,562 | 22,944,229 | 22,654,033 |
Gain on disposition of real estate | 70,993 | 87,793 | 19,817 |
Operating income | 1,637,467 | 969,759 | 1,259,875 |
Equity income from unconsolidated subsidiaries | 618,697 | 126,161 | 160,925 |
Other income | 203,609 | 17,394 | 28,907 |
Interest expense, net of interest income | 50,352 | 67,753 | 85,754 |
Write-off of financing costs on extinguished debt | 0 | 75,592 | 2,608 |
Income before provision for income taxes | 2,409,421 | 969,969 | 1,361,345 |
Provision for income taxes | 567,506 | 214,101 | 69,895 |
Net income | 1,841,915 | 755,868 | 1,291,450 |
Less: Net income attributable to non-controlling interests | 5,341 | 3,879 | 9,093 |
Net income attributable to CBRE Group, Inc. | $ 1,836,574 | $ 751,989 | $ 1,282,357 |
Basic income per share: | |||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 5.48 | $ 2.24 | $ 3.82 |
Weighted average shares outstanding for basic income per share (in shares) | 335,232,840 | 335,196,296 | 335,795,654 |
Diluted income per share: | |||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 5.41 | $ 2.22 | $ 3.77 |
Weighted average shares outstanding for diluted income per share (in shares) | 339,717,401 | 338,392,210 | 340,522,871 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,841,915 | $ 755,868 | $ 1,291,450 |
Other comprehensive (loss) income: | |||
Foreign currency translation (loss) gain | (159,722) | 124,260 | (14,092) |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of $151, $156 and $471 income tax expense for the years ended December 31, 2021, 2020 and 2019, respectively | 431 | 426 | 1,320 |
Unrealized holding (losses) gains on available for sale debt securities, net of $415 income tax benefit and $382 and $559 income tax expense for the years ended December 31, 2021, 2020 and 2019, respectively | (1,964) | 1,436 | 2,101 |
Pension liability adjustments, net of $8,281, $1,663 and $194 income tax expense for the years ended December 31, 2021, 2020 and 2019, respectively | 35,304 | 7,343 | 944 |
Legal entity restructuring, net of $17,694 income tax expense for the year ended December 31, 2019 | 0 | 0 | 63,149 |
Other, net of $699 and $3,068 income tax expense and $3,795 income tax benefit for the years ended December 31, 2021, 2020 and 2019, respectively | 3,164 | 16,772 | (14,946) |
Total other comprehensive (loss) income | (122,787) | 150,237 | 38,476 |
Comprehensive income | 1,719,128 | 906,105 | 1,329,926 |
Less: Comprehensive (loss) income attributable to non-controlling interests | (6,513) | 4,094 | 9,048 |
Comprehensive income attributable to CBRE Group, Inc. | $ 1,725,641 | $ 902,011 | $ 1,320,878 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, income tax expense | $ 151 | $ 156 | $ 471 |
Unrealized holding (losses) gains on available for sale debt securities, income tax expense (benefit) | (415) | 382 | 559 |
Pension liability adjustments, income tax expense (benefit) | 8,281 | 1,663 | 194 |
Legal entity restructuring, income tax expense (benefit) | (17,694) | ||
Other, income tax expense (benefit) | $ 699 | $ 3,068 | $ (3,795) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 1,841,915 | $ 755,868 | $ 1,291,450 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 525,871 | 501,728 | 439,224 |
Amortization and write-off of financing costs on extinguished debt | 8,315 | 82,705 | 8,662 |
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets | (142,929) | (297,980) | (246,690) |
Asset impairments | 0 | 88,676 | 89,787 |
Net realized and unrealized losses, primarily from investments | (41,982) | (17,394) | (28,907) |
Provision for doubtful accounts | 24,489 | 44,366 | 20,373 |
Net compensation expense for equity awards | 184,934 | 60,391 | 127,738 |
Equity income from unconsolidated subsidiaries | (618,697) | (126,161) | (160,925) |
Gain recognized upon deconsolidation of SPAC | (187,456) | 0 | 0 |
Distribution of earnings from unconsolidated subsidiaries | 520,382 | 155,975 | 199,011 |
Proceeds from sale of mortgage loans | 17,194,606 | 20,937,521 | 19,805,060 |
Origination of mortgage loans | (17,015,839) | (21,268,114) | (19,389,979) |
(Decrease) increase in warehouse lines of credit | (106,513) | 406,789 | (351,586) |
Tenant concessions received | 31,176 | 48,030 | 21,249 |
Purchase of equity securities | (7,154) | (11,113) | (83,001) |
Proceeds from sale of equity securities | 8,709 | 13,741 | 46,949 |
(Increase) decrease in real estate under development | (54,658) | (105,619) | 31,420 |
(Increase) decrease in receivables, prepaid expenses and other assets (including contract and lease assets) | (765,959) | 371,009 | (821,134) |
Increase in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) | 104,749 | 105,491 | 306,677 |
Increase (decrease) in compensation and employee benefits payable and accrued bonus and profit sharing | 729,703 | (100,142) | 244,895 |
Decrease (increase) in net income taxes receivable/payable | 248,293 | 173,648 | (274,436) |
Other operating activities, net | (117,777) | 11,364 | (52,457) |
Net cash provided by operating activities | 2,364,178 | 1,830,779 | 1,223,380 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (209,851) | (266,575) | (293,514) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (781,489) | (27,848) | (355,926) |
Contributions to unconsolidated subsidiaries | (334,544) | (146,409) | (105,947) |
Distributions from unconsolidated subsidiaries | 75,853 | 88,731 | 33,289 |
Investment in Altus Power, Inc. Class A stock | (220,001) | 0 | 0 |
Proceeds from sale of marketable securities - special purpose acquisition company trust account | 212,722 | 0 | 0 |
Purchase of marketable securities - special purpose acquisition company trust account | 0 | (402,500) | 0 |
Other investing activities, net | (23,587) | 10,516 | 1,074 |
Net cash used in investing activities | (1,280,897) | (744,085) | (721,024) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from senior term loans | 0 | 0 | 300,000 |
Repayment of senior term loans | (300,000) | 0 | (300,000) |
Proceeds from revolving credit facility | 26,599 | 835,671 | 3,609,000 |
Repayment of revolving credit facility | 0 | (835,671) | (3,609,000) |
Repayment of 5.25% senior notes (including premium) | 0 | (499,652) | 0 |
Repayment of debt assumed in acquisition of Telford Homes | 0 | 0 | (110,687) |
Sale of non-controlling interest - special purpose acquisition company | 0 | 393,661 | 0 |
Redemption of non-controlling interest-special purpose acquisition company and payment of deferred underwriting commission | (205,110) | 0 | 0 |
Proceeds from notes payable on real estate | 78,428 | 90,552 | 6,694 |
Repayment of notes payable on real estate | (109,461) | (24,704) | 0 |
Proceeds from issuance of 2.500% senior notes | 492,255 | 0 | 0 |
Repurchase of common stock | (368,603) | (50,028) | (145,137) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (17,769) | (44,700) | (42,147) |
Units repurchased for payment of taxes on equity awards | (38,864) | (43,835) | (18,426) |
Non-controlling interest contributions | 862 | 2,173 | 46,612 |
Non-controlling interest distributions | (4,572) | (4,330) | (3,957) |
Other financing activities, net | (44,396) | (41,893) | (4,901) |
Net cash used in financing activities | (490,631) | (222,756) | (271,949) |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (92,116) | 81,564 | (606) |
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 500,534 | 945,502 | 229,801 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF YEAR | 2,039,247 | 1,093,745 | 863,944 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF YEAR | 2,539,781 | 2,039,247 | 1,093,745 |
Cash paid during the year for: | |||
Interest | 41,068 | 67,463 | 86,666 |
Income tax payments, net | 330,426 | 51,681 | 365,065 |
Non-cash investing and financing activities: | |||
Deferred purchase consideration - Turner & Townsend | 485,414 | 0 | 0 |
Non-controlling interest as part of Turner & Townsend Acquisition | 774,122 | 0 | 0 |
Investment in alignment shares and private placement warrants of Altus Power, Inc. | 141,871 | 0 | 0 |
Reduction in redeemable non-controlling interest - special purpose acquisition company | 211,501 | 0 | 0 |
Reduction of trust account - special purpose acquisition company | $ 189,801 | $ 0 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 26, 2014 |
5.25% Senior Notes | ||||
Interest rate | 5.25% | 5.25% | 5.25% | |
5.25% Senior Notes | Senior Notes | ||||
Interest rate | 5.25% | |||
2.500% Senior Notes | ||||
Interest rate | 2.50% | 2.50% | ||
2.500% Senior Notes | Senior Notes | ||||
Interest rate | 2.50% |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Class A common stock | Additional paid-in capital | Accumulated earnings | Minimum pension liability | Foreign currency translation and other | Non- controlling interests |
Beginning balance (in shares) at Dec. 31, 2018 | 336,912,783 | ||||||
Beginning 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 (loss) gain | (14,092) | (14,047) | (45) | ||||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 1,320 | 1,320 | |||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | 2,101 | 2,101 | |||||
Contributions from non-controlling interests | 46,612 | 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 | (12,143) | $ 1 | 2,734 | 6,108 | (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 (loss) gain | 124,260 | 124,045 | 215 | ||||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 426 | 426 | |||||
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) | (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 |
Net income | 1,841,915 | 1,836,574 | 5,341 | ||||
Pension liability adjustments, net of tax | 35,304 | 35,304 | |||||
Restricted stock awards vesting (in shares) | 1,268,983 | ||||||
Restricted stock awards vesting | $ 13 | (13) | |||||
Compensation expense for equity awards | 184,934 | 184,934 | |||||
Units repurchased for payment of taxes on equity awards | (38,864) | (38,864) | |||||
Repurchase of common stock (in shares) | (3,954,369) | ||||||
Repurchase of common stock | (372,949) | $ (40) | (372,909) | ||||
Foreign currency translation (loss) gain | (159,722) | (147,868) | (11,854) | ||||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 431 | 431 | |||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (1,964) | (1,964) | |||||
Contributions from non-controlling interests | 862 | 862 | |||||
Distributions to non-controlling interests | (4,572) | (4,572) | |||||
Legal entity restructuring, net | 0 | ||||||
Acquisition of non-controlling interests | 808,633 | 808,633 | |||||
Other | (54,978) | (48,895) | 3,164 | (9,247) | |||
Ending balance (in shares) at Dec. 31, 2021 | 332,875,959 | ||||||
Ending balance at Dec. 31, 2021 | $ 9,359,117 | $ 3,329 | $ 798,892 | $ 8,366,631 | $ (104,316) | $ (536,343) | $ 830,924 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 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, 2021, the company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries providing services under the following brand names: “CBRE” (real estate advisory and outsourcing services); “CBRE Investment Management” (investment management); “Trammell Crow Company” (U.S. development); “Telford Homes” (U.K. development). CBRE sponsored a special purpose acquisition company, or SPAC, CBRE Acquisition Holdings, Inc, which merged with and into Altus Power, Inc. (the SPAC Merger), a leading provider of solar energy for commercial and industrial properties. Altus Power Inc. (Altus) began trading as a public company on the NYSE on December 10, 2021 under the ticker symbol “AMPS.” Considerations Related to the Covid-19 Pandemic |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 and related interests 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, 2021, 2020 and 2019. 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, 2021 and 2020 is cash and cash equivalents of $125.2 million and $102.9 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, 2021 and 2020 is restricted cash of $108.8 million and $143.1 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 $8.6 billion and $8.1 billion at December 31, 2021 and 2020, 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 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, 2021 2020 Real estate under development, current (included in other current assets) $ 96,237 $ 55,072 Real estate and other assets held for sale (included in other current assets) 142 3,710 Real estate under development 326,416 277,630 Real estate held for investment (included in other assets, net) 4,447 3,795 Total real estate $ 427,242 $ 340,207 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. Deferred consideration arrangements granted in connection with a business combination are evaluated to determine whether all or a portion is, in substance, additional purchase price or compensation for services. Additional purchase price is added to the fair value of consideration transferred in the business combination and compensation is included in operating expenses in the period it is incurred. 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, our acquisition of Telford Homes Plc (Telford) in 2019 and our acquisition of a majority interest in Turner & Townsend in 2021. 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, and a trademark identified as part of the Turner & Townsend Acquisition. 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 or indefinite-lived intangible assets 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 or indefinite-lived intangible asset’s fair value is less than its carrying amount before applying the quantitative impairment test. If it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying amount, the entity conducts the quantitative 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 primarily use a discounted cash flow approach to estimate the fair value of our reporting units and indefinite-lived intangible assets. 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. We record an impairment loss when the amount by which a reporting unit’s or indefinite-lived intangible asset’s carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill or indefinite-lived intangible asset. Business Combinations We estimate the fair value of identifiable assets, liabilities and any non-controlling interests acquired in a business combination and recognize goodwill as the excess of the purchase price over the recorded value of the acquired assets and liabilities in accordance with ASC Topic 805. When estimating the fair value of acquired assets, we utilize various valuation models which may require significant judgment, particularly where observable market values do not exist. Inputs requiring significant judgment may include discount rates, growth rates, cost of capital, royalty rates, tax rates, market values, depreciated replacement costs, selling prices less costs to dispose, and remaining useful lives, among others. Reasonable differences in these inputs could have a significant impact on the estimated value of acquired assets, the resulting value of goodwill, subsequent depreciation and amortization expense, and the results of future asset impairment evaluations. Leases We are the lessee in contracts for our office space tenancies, for leased vehicles and for certain legacy units in our indirect wholly-owned subsidiary CBRE Hana, LLC (Hana). We monitor our service arrangements to evaluate whether they meet the definition of a lease. 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. 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 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 valu |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (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 adopted ASU 2019‑12 in the first quarter of 2021 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. 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 adopted ASU 2020‑01 in the first quarter of 2021 and the adoption did not have a material impact 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 the Accounting Standards Codification (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 adopted ASU 2020-08 in the first quarter of 2021 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. 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 adopted ASU 2020-10 in the first quarter of 2021 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. Recent Accounting Pronouncements Pending Adoption In March 2020 and January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” and ASU 2021-01, “ Reference Rate Reform: Scope ,” respectively. Together, the ASUs provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective for a limited time for all entities through December 31, 2022. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. In July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments (Topic 842) .” The ASU amends the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if certain criteria are met. This guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We are evaluating the effect that ASU 2021-05 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In October 2021, the FASB issued ASU 2021-08, “ Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We are evaluating the effect that ASU 2021-08 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In November 2021, the FASB issued ASU 2021-10, “ Disclosures by Business Entities about Government Assistance .” This ASU requires annual disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for fiscal years beginning after December 15, 2021. Early application is permitted. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. We are evaluating the effect that ASU 2021-10 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. |
Turner & Townsend Acquisition
Turner & Townsend Acquisition | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Turner & Townsend Acquisition | Turner & Townsend Acquisition On November 1, 2021, we acquired a 60% ownership interest in, and entered into a strategic partnership with Turner & Townsend Holdings Limited (Turner & Townsend). Turner & Townsend is a leading professional services company specializing in program management, project management, cost and commercial management and advisory services across the real estate, infrastructure and natural resources sectors, and is reported in our Global Workplace Solutions segment. The combined partnership is expected to generate strategic growth opportunities in the project management space for both entities. The Turner & Townsend Acquisition was treated as a business combination under ASC 805 and was accounted for using the acquisition method of accounting. We were deemed the accounting acquirer as we obtained control through an all-cash transaction and were the larger entity by revenue and by assets. Operating results for Turner & Townsend are included in the consolidated statements of operations for the year ended December 31, 2021 from the date of the acquisition. The Turner & Townsend Acquisition was funded with cash on hand. The following summarizes the consideration transferred at closing for the Turner & Townsend Acquisition (dollars in thousands): Cash consideration (1) $ 722,595 Deferred consideration (2) 494,349 Total consideration $ 1,216,944 _______________ (1) Represents cash paid at closing (2) Represents the fair value of deferred consideration, to be settled in cash, with the only remaining condition on such payments being the passage of time The deferred consideration amount above represents a total payment of $591.2 million less a discount of $96.9 million which will be accreted through the payment date. A portion of the discount is attributable to the time value associated with the contractual payment dates of 3-4 years and will be recorded as interest expense. The remaining discount is attributable to the time value associated with the deferred payment date (10 th anniversary of closing) if a seller is no longer employed on the contractual payment date and will be recorded as compensation expense. The following represents the summary of the excess purchase price over the fair value of net assets acquired and fair value of non-controlling interest (dollars in thousands): Purchase price $ 1,216,944 Less: Estimated fair value of net assets acquired (see table below) 152,027 Plus: Estimated fair value of non-controlling interest (1) 32,416 Excess purchase price over estimated fair value of net assets acquired $ 1,097,333 _______________ (1) Represents fair value of legacy non-controlling interest of Turner & Townsend The preliminary purchase accounting adjustments related to the Turner & Townsend Acquisition have been recorded in the accompanying consolidated financial statements. The excess purchase price over the fair value of net assets acquired and non-controlling interest has been recorded to goodwill. The goodwill arising from the Turner & Townsend Acquisition consists largely of the synergies and opportunities to deliver a premier project, program and cost management services. The goodwill recorded in connection with the Turner & Townsend Acquisition was not deductible for tax purposes. The acquired assets and assumed liabilities of Turner & Townsend were recorded at their estimated fair values. The purchase price allocation for the business combination is preliminary, primarily for intangibles, and subject to change within the respective measurement period which will not extend beyond one year from the acquisition date. Measurement period adjustments will be recognized in the reporting period in which the adjustment amounts are determined. Any such adjustments may be material. The following table summarizes the preliminary fair values assigned to the identified assets acquired and liabilities assumed at the acquisition date on November 1, 2021. (Dollars in thousands) Assets Acquired: Cash and cash equivalents $ 44,007 Trade and other receivables 239,269 Prepaid expenses 7,969 Other current assets 19,359 Property and equipment, net 57,138 Other intangible assets, net 1,104,968 Operating lease assets 44,249 Other assets, net 8,427 Total assets acquired 1,525,386 Liabilities Assumed: Accounts payable and accrued expenses 59,986 Compensation and employee benefits 34,557 Operating lease liabilities 11,144 Contract liabilities 44,943 Other current liabilities 126,034 Non-current operating lease liabilities 30,939 Deferred tax liability 291,634 Total liabilities assumed 599,237 Non-controlling Interest Acquired 774,122 Estimated Fair Value of Net Assets Acquired $ 152,027 In connection with the Turner & Townsend Acquisition, below is a summary of the preliminary value allocated to the intangible assets acquired (dollars in thousands): December 31, 2021 Asset Class Amortization Amount Accumulated Amortization Net Carrying Customer relationships 5-11 years $ 753,935 $ 21,577 $ 732,358 Backlog 2-4 years 75,407 5,255 70,152 Trademark Indefinite 275,626 3,202 272,424 The accompanying consolidated statement of operations for the year ended December 31, 2021 includes revenue, operating income and net loss of $194.0 million, $0.5 million and $0.5 million, respectively, attributable to the Turner & Townsend Acquisition. This does not include direct transaction and integration costs of $44.6 million which were incurred during the year ended December 31, 2021 in connection with the Turner & Townsend Acquisition. The fair value of customer relationships and backlog was determined using the Multi-Period Excess Earnings Method (MPEEM), a form of the Income Approach. The MPEEM is a specific application of the Discounted Cash Flow Method. The principle behind the MPEEM is that the value of an intangible asset is equal to the present value of the incremental cash flows attributable only to the subject intangible asset. This estimation used certain unobservable key inputs such as timing of projected cash flows, growth rates, customer attrition rates, discount rates, and the assessment of useful life. The fair value of the trademark was determined by using the Relief-from-Royalty Method, a form of the Income Approach, and relied on key unobservable inputs such as timing of the projected cash flows, growth rates, and royalty rates. The basic tenet of the Relief-from-Royalty Method is that without ownership of the subject intangible asset, the user of that intangible asset would have to make a stream of payments to the owner of the asset in return for the rights to use that asset. By acquiring the intangible asset, the user avoids these payments. The fair value of the non-controlling interest was estimated by multiplying the implied value of a 100 percent equity interest in Turner & Townsend Holdings Limited by 40 percent. A discount for lack of marketability was not applied as the equity owners from Turner & Townsend Partners LLP maintain a significant equity stake and remain actively involved in the day to day operations of the business. Unaudited pro forma results, assuming the Turner & Townsend Acquisition had occurred as of January 1, 2020 for purposes of the pro forma disclosures for the years ended December 31, 2021 and 2020 are presented below. They include certain adjustments for increased amortization expense related to the intangible assets acquired (approximately $81.3 million and $97.5 million in 2021 and 2020, respectively) as well as increased depreciation expense related to the fixed assets acquired (approximately $5.5 million and $6.6 million in 2021 and 2020, respectively). Direct transaction and integration costs of $44.6 million as well as the tax impact of all pro forma adjustments are also included in the pro forma results. 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 Turner & Townsend Acquisition occurred on January 1, 2020 and may not be indicative of future operating results (dollars in thousands, except share data): Year Ended December 31, 2021 2020 Revenue $ 28,545,833 $ 24,715,787 Operating income 1,705,982 944,102 Net income attributable to CBRE Group, Inc. 1,873,426 705,375 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 5.59 $ 2.10 Weighted average shares outstanding for basic income per share 335,232,840 335,196,296 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 5.51 $ 2.08 Weighted average shares outstanding for diluted income per share 339,717,401 338,392,210 |
Warehouse Receivables & Warehou
Warehouse Receivables & Warehouse Lines of Credit | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 $ 1,411,170 Origination of mortgage loans 17,015,839 Gains (premiums on loan sales) 79,925 Proceeds from sale of mortgage loans: Sale of mortgage loans (17,114,681) Cash collections of premiums on loan sales (79,925) Proceeds from sale of mortgage loans (17,194,606) Net decrease in mortgage servicing rights included in warehouse receivables (8,611) Ending balance at December 31, 2021 $ 1,303,717 The following table is a summary of our warehouse lines of credit in place as of December 31, 2021 and 2020 (dollars in thousands): December 31, 2021 December 31, 2020 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 10/17/2022 daily floating rate SOFR rate plus 1.60% $ 1,335,000 $ 742,124 $ 1,585,000 $ 561,726 JP Morgan 10/17/2022 daily floating rate SOFR rate plus 2.75% 15,000 4,326 15,000 — Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program (2) Cancelable daily one-month LIBOR plus 1.45%, with a LIBOR floor of 0.25% 650,000 133,084 450,000 132,692 TD Bank, N.A. (TD Bank) (3) 7/15/2022 daily floating rate LIBOR plus 1.30% 800,000 217,672 800,000 401,849 Bank of America, N.A. (BofA) (4) 5/25/2022 daily floating rate LIBOR plus 1.30%, with a LIBOR floor of 0.30% 350,000 178,600 350,000 175,862 BofA (5) 5/25/2022 daily floating rate LIBOR plus 1.30%, with a LIBOR floor of 0.30% 250,000 — — — MUFG Union Bank, N.A. (Union Bank) (6) 6/28/2022 daily floating rate LIBOR plus 1.30% 200,000 1,645 300,000 111,835 $ 3,600,000 $ 1,277,451 $ 3,500,000 $ 1,383,964 _______________ (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. Effective October 18, 2021, this facility was renewed and amended and the maximum facility size was increased to $1,335.0 million. This facility has a revised maturity date of October 17, 2022 and a revised interest rate to a Secured Overnight Finance Rate (SOFR) term plus 1.60%, noting the Business Lending sublimit has a revised interest rate of daily adjusted term SOFR plus 2.75%. (2) Effective January 15, 2021, the maximum facility was temporarily increased to $650.0 million. (3) 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. Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30% and a maturity date of July 15, 2022. As of December 31, 2021, the uncommitted $400.0 million temporary line of credit was not utilized. (4) 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. Effective June 30, 2021, this facility was renewed with a revised interest rate of daily floating LIBOR plus 1.30% and a maturity date of May 25, 2022. The sublimit is subject to an interest rate of daily floating LIBOR plus 1.75%, with a LIBOR floor of 0.75%. As of December 31, 2021, the sublimit borrowing has not been utilized. (5) Effective June 30, 2021, the advised consent line was renewed for $250.0 million of capacity with a revised interest rate of daily floating LIBOR plus 1.30%, with a LIBOR floor of 0.30%, and a maturity date of May 25, 2022. (6) Effective August 4, 2020, this facility was amended to decrease the accordion feature from $150.0 million to $100.0 million. If utilized, the additional borrowings must be in predefined multiples and are not to occur more than 3 times within 12 consecutive months. On September 22, 2020, the temporary increase of $100.0 million was utilized and expired on January 20, 2021. Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30%, removing the LIBOR floor, and a maturity date of June 28, 2022 During the year ended December 31, 2021, we had a maximum of $2.5 billion of warehouse lines of credit principal outstanding. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entities | Variable Interest Entities We hold variable interests in certain VIEs primarily 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, 2021 and 2020, our maximum exposure to loss related to the VIEs that are not consolidated was as follows (dollars in thousands): December 31, 2021 2020 Investments in unconsolidated subsidiaries $ 109,530 $ 66,947 Other current assets 4,219 4,219 Co-investment commitments 90,328 47,957 Maximum exposure to loss $ 204,077 $ 119,123 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
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 and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020 (dollars in thousands): December 31, 2021 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 7,002 $ — $ — $ 7,002 Debt securities issued by U.S. federal agencies — 9,276 — 9,276 Corporate debt securities — 50,897 — 50,897 Asset-backed securities — 3,428 — 3,428 Collateralized mortgage obligations — 725 — 725 Total available for sale debt securities 7,002 64,326 — 71,328 Equity securities 69,880 — — 69,880 Investments in unconsolidated subsidiaries 229,900 23,741 406,690 660,331 Warehouse receivables — 1,303,717 — 1,303,717 Total assets at fair value $ 306,782 $ 1,391,784 $ 406,690 $ 2,105,256 Liabilities Other liabilities — — 10,700 10,700 Total liabilities at fair value $ — $ — $ 10,700 $ 10,700 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 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. The fair values of the warehouse receivables are primarily calculated based on already locked in purchase prices. At December 31, 2021 and 2020, 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. As of December 31, 2021 and 2020, investments in unconsolidated subsidiaries at fair value using NAV were $152.7 million and $66.3 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 tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands): Investment in Unconsolidated Subsidiaries Other liabilities Balance as of December 31, 2020 $ 50,000 $ — Transfer in 5,174 — Net change in fair value 36,432 10,700 Purchases/ Additions 315,084 — Balance as of December 31, 2021 $ 406,690 $ 10,700 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other liabilities Other income The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments: Valuation Technique Unobservable Input Range Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 14% - 26% Monte Carlo Volatility 70 % Risk free interest rate 1.4 % Other liabilities Discounted cash flow Discount rate 25.5 % There were no significant non-recurring fair value measurements recorded during the year ended December 31, 2021. The following non-recurring fair value measurements were recorded for the year ended December 31, 2020 (dollars in thousands): Net Carrying Value Fair Value Measured and Recorded Using Total Impairment Charges for the 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 Fair Value Measured and Recorded Using Total Impairment Charges for the 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. 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 as discussed above. It includes our equity investment and related interests in both public and non-public entities. Our ownership of common shares in Altus is considered level 1 and is measured at fair value using a quoted price in an active market. Private placement warrants related to Altus are considered level 2 and measured at fair value using observable inputs for similar assets in an active market. Our ownership of alignment shares of Altus and our investment in Industrious and certain other non-controlling equity investments are considered level 3 which are measured at fair value using a Monte Carlo and a discounted cash flow approach, respectively. The valuation of Altus’ common shares, private placement warrants and alignment shares are dependent on its stock price which could be volatile and subject to wide fluctuations in response to various market conditions. • Available for Sale Debt Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value. • Equity Securities – Primarily held by our wholly-owned captive insurance company, 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 were deposited in an interest-bearing U.S. based trust account. The funds were invested 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 as of December 31, 2020. As a result of the SPAC Merger, the Investments Held in Trust were derecognized. (See Note 2). • Other liabilities – Represents the fair value of the unfunded commitment related to a revolving facility in our Advisory Services segment. Valuations are based on discounted cash flow techniques, for which the significant inputs are the amount and timing of expected future cash flows, market comparables and recovery assumptions. • 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 $451.8 million and $772.2 million at December 31, 2021 and 2020, respectively. Their actual carrying value, net of unamortized debt issuance costs, totaled $454.5 million and $785.7 million at December 31, 2021 and 2020, 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 $671.7 million and $702.5 million at December 31, 2021 and 2020, respectively. The actual carrying value of our 4.875% senior notes, net of unamortized debt issuance costs and unamortized discount, totaled $595.5 million and $594.5 million at December 31, 2021 and 2020, respectively. The estimated fair value of our 2.500% senior notes was $502.1 million as of December 31, 2021. The actual carrying value of our 2.500% senior notes, net of unamortized debt issuance costs and discount, totaled $488.1 million at December 31, 2021. 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). • Notes Payable on Real Estate – As of December 31, 2021 and 2020, the carrying value of our notes payable on real estate, net of unamortized debt issuance costs, was $48.2 million and $79.6 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, 2021 | |
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 2021 2020 Computer hardware and software 2-10 years $ 1,101,248 $ 974,490 Leasehold improvements 1-15 years 622,771 554,252 Furniture and equipment 1-10 years 260,551 243,880 Construction in progress N/A 120,031 117,274 Total cost 2,104,601 1,889,896 Accumulated depreciation and amortization 1,288,509 1,074,887 Property and equipment, net $ 816,092 $ 815,009 Depreciation and amortization expense associated with property and equipment was $244.9 million, $268.3 million and $207.8 million for the years ended December 31, 2021, 2020 and 2019, 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). There were no asset impairment charges related to property and equipment during the year ended December 31, 2021. 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, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets As of January 1, 2021, we underwent an internal reorganization in our Advisory Services and Global Workplace Solutions reportable segments (see Note 14 for further discussion). This changed the composition of our reporting units which resulted in the reallocation of $101.4 million of goodwill from our Advisory Services to our Global Workplace Solutions reportable segments as of January 1, 2021. Additionally, the change in composition of our reporting units was considered a triggering event for a quantitative test as of January 1, 2021. We determined that no impairment existed as the estimated fair values of our reporting units were in excess of their respective carrying values. 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 2021, 2020 and 2019 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, 2021, 2020 and 2019, 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, 2021 and 2020 (dollars in thousands): Advisory Global Real Estate Total 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 Reallocation (101,390) 101,390 — — Purchase accounting entries related to acquisitions 77,616 1,167,678 — 1,245,294 Impairment — — — — Foreign exchange movement (26,520) (32,836) (12,372) (71,728) Balance as of December 31, 2021 Goodwill 3,298,494 2,174,029 616,158 6,088,681 Accumulated impairment losses (761,448) (175,473) (156,585) (1,093,506) $ 2,537,046 $ 1,998,556 $ 459,573 $ 4,995,175 During 2021, in addition to the Turner & Townsend Acquisition (see Note 4), we completed eight in-fill acquisitions: a U.S. firm that provides construction and project management services, a professional service advisory firm in Australia, a U.S. firm focused on investment banking and investment sales in the global gaming real estate market, a leading facilities management firm in the Netherlands, a workplace interior design and project management company in Singapore, a property management firm in France, a residential brokerage in the Netherlands, and an occupancy management company based in the U.S. 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. Other intangible assets totaled $2.4 billion, net of accumulated amortization of $1.7 billion as of December 31, 2021, and $1.4 billion, net of accumulated amortization of $1.6 billion, as of December 31, 2020 and are comprised of the following (dollars in thousands): December 31, 2021 2020 Gross Accumulated Gross Accumulated Unamortizable intangible assets: Management contracts $ 63,153 $ 67,422 Trademarks 329,224 56,800 392,377 124,222 Amortizable intangible assets: Customer relationships 1,612,308 $ (667,668) 880,104 $ (603,866) Mortgage servicing rights 1,005,357 (426,841) 927,525 (370,634) Trademarks/Trade names 350,548 (126,468) 354,060 (111,595) Management contracts 151,912 (137,906) 152,312 (145,612) Covenant not to compete 73,750 (73,750) 73,750 (73,750) Other 548,455 (292,647) 412,477 (251,080) 3,742,330 (1,725,280) 2,800,228 (1,556,537) Total intangible assets $ 4,134,707 $ (1,725,280) $ 2,924,450 $ (1,556,537) 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, a trade name separately identified in connection with the REIM Acquisitions and a trademark separately identified as part of the Turner & Townsend transaction. Customer relationships relate to existing relationships acquired through acquisitions mainly in our Global Workplace Solutions segment, including $753.9 million identified as part of the Turner & Townsend transaction, 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. Definite-lived trademarks/trade names primarily comprise of a trademark identified as part of the 2019 Telford acquisition of approximately $26.7 million which is being amortized over 20 years and trademarks of approximately $280.0 million from 2015 GWS Acquisition which 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. It also includes a backlog related intangible identified as part of Turner & Townsend transaction. 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, excluding amortization of transition costs, was $276.5 million, $227.1 million and $225.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. The estimated annual amortization expense for each of the years ending December 31, 2022 through December 31, 2026 and thereafter approximates $309.8 million, $284.6 million, $248.5 million, $201.3 million and $161.4 million, respectively. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2021 | |
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%. The following table represents the composition of investment in unconsolidated subsidiaries (dollars in thousands): December 31, Investment type 2021 2020 Real estate investments $ 453,813 $ 340,248 Investment in Altus: Class A common stock (22 million shares) 229,900 — Alignment shares (1) 114,727 — Private placement warrants (2) 23,741 — Subtotal $ 368,368 $ — Other (3) $ 373,907 $ 112,117 Total investment in unconsolidated subsidiaries $ 1,196,088 $ 452,365 _______________ (1) The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common shares based on the achievement of certain total return thresholds on Altus Class A common shares as of the relevant measurement date over the seven fiscal years following the merger. (2) These warrants entitle us to purchase one share of Altus Class A common stock at $11.00 per share, subject to adjustment. (3) Consists of our investments in Industrious and other non-public entities. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): December 31, 2021 2020 Combined Condensed Balance Sheets Information: Current assets $ 7,127,598 $ 6,508,718 Non-current assets 30,586,991 24,343,229 Total assets $ 37,714,589 $ 30,851,947 Current liabilities $ 3,128,205 $ 3,164,135 Non-current liabilities 8,875,779 6,696,352 Total liabilities $ 12,003,984 $ 9,860,487 Non-controlling interests $ 588,067 $ 460,904 Year Ended December 31, 2021 2020 2019 Combined Condensed Statements of Operations Information: Revenue $ 2,680,675 $ 2,036,818 $ 1,545,424 Operating income 1,371,014 587,689 549,111 Net income (1) 3,260,051 483,224 419,966 _______________ (1) Included in net income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income. 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 $213.5 million, $145.9 million and $97.0 million during the years ended December 31, 2021, 2020 and 2019, respectively. During 2021 and 2020, the company contributed cash and certain assets of Hana for a 40% non-controlling interest in Industrious. This equity investment is marked to fair value on a quarterly basis using a discounted cash flow approach. |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Long-Term Debt Senior term loans, with interest ranging from 0.75% to 1.15%, due quarterly through March 4, 2024 $ 455,166 $ 788,759 4.875% senior notes due in 2026, net of unamortized discount 597,911 597,470 2.500% senior notes due in 2031 net of unamortized discount 492,782 — Other — 1,514 Total long-term debt 1,545,859 1,387,743 Less: current maturities of long-term debt — 1,514 Less: unamortized debt issuance costs 7,736 6,027 Total long-term debt, net of current maturities $ 1,538,123 $ 1,380,202 Short-Term Borrowings Warehouse lines of credit, with interest ranging from 1.40% to 2.89%, due in 2022 $ 1,277,451 $ 1,383,964 Other 32,668 5,330 Total short-term borrowings $ 1,310,119 $ 1,389,294 Future annual aggregate maturities of total consolidated gross debt (excluding unamortized discount, premium and debt issuance costs) at December 31, 2021 are as follows (dollars in thousands): 2022—$1,310,119; 2023—$455,166; 2024—$0; 2025—$0; 2026—$600,000 and $500,000 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 term 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 a new tranche A term loan facility under the 2019 Credit Agreement was 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. On July 9, 2021, CBRE Services entered into an additional incremental assumption agreement with respect to the 2019 Credit Agreement for purposes of increasing the revolving credit commitments available under the 2019 Credit Agreement by an aggregate principal amount of $350.0 million (the 2019 Credit Agreement, as amended by the July 9, 2021 incremental assumption agreement is collectively referred to in this Annual Report as the 2021 Credit Agreement). On December 10, 2021, CBRE Services and certain of the other borrowers entered into an amendment of the 2021 Credit Agreement which (i) changed the interest rate applicable to revolving borrowings denominated in Sterling from a LIBOR-based rate to a rate based on the Sterling Overnight Index Average (SONIA) and (ii) changed the interest rate applicable to revolving borrowings denominated in Euros from a LIBOR-based rate to a rate based on EURIBOR. The revised interest rates described above went into effect as of January 1, 2022. The 2021 Credit Agreement is a senior unsecured credit facility that is guaranteed by us. On May 21, 2021, we entered into a definitive agreement whereby our subsidiary guarantors were released as guarantors from the 2021 Credit Agreement. As of December 31, 2021, the 2021 Credit Agreement provided for the following: (1) a $3.15 billion 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 tranche A term loan facility maturing on March 4, 2024, requiring quarterly principal payments unless our leverage ratio (as defined in the 2021 Credit Agreement) is less than or equal to 2.50x 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. Borrowings under the euro term loan facility under the 2021 Credit Agreement bear interest at a minimum rate of 0.75% plus EURIBOR and revolving borrowings bear interest, based at our option, on either (1) the applicable fixed rate plus 0.68% 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 2021 Credit Agreement). As of December 31, 2021, we had $454.5 million of euro term loan borrowings outstanding under the 2021 Credit Agreement (at an interest rate of 0.75% plus EURIBOR), net of unamortized debt issuance costs, included in the accompanying consolidated balance sheet. Borrowings under the tranche A term loan facility under the 2021 Credit Agreement bore interest, based at our option, on either (1) the applicable fixed rate plus 0.750% 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 2021 Credit Agreement). On November 23, 2021, we repaid our $300.0 million tranche A term loan facility under the 2021 Credit Agreement. On March 18, 2021, CBRE Services issued $500.0 million in aggregate principal amount of 2.500% senior notes due April 1, 2031 at a price equal to 98.451% of their face value (the 2.500% senior notes). The 2.500% 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. Interest accrues at a rate of 2.500% per year and is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021. The 2.500% senior notes are redeemable at our option, in whole or in part, on or after January 1, 2031 at a redemption price of 100% of the principal amount on that date, plus accrued and unpaid interest, if any, to, but excluding the date of redemption. At any time prior to January 1, 2031, we may redeem all or a portion of the notes at a redemption price equal to the greater of (1) 100% of the principal amount of the notes to be redeemed and (2) the sum of the present value at the date of redemption of the remaining scheduled payments of principal and interest thereon to January 1, 2031, assuming the notes matured on January 1, 2031, discounted to the date of redemption on a semi-annual basis at an adjusted rate equal to the treasury rate plus 20 basis points, minus accrued and unpaid interest to, but excluding, the date of redemption, plus, in either case, accrued and unpaid interest, if any, to, but not including, the redemption date. The amount of the 2.500% senior notes, net of unamortized discount and unamortized debt issuance costs, included in the accompanying consolidated balance sheet was $488.1 million at December 31, 2021. 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 guaranteed on a senior basis by us. 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 $595.5 million and $594.5 million at December 31, 2021 and 2020, 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 indenture governing our 4.875% senior notes and 2.500% senior notes contain 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, these indentures require that the 4.875% senior notes and 2.500% senior notes be jointly and severally guaranteed on a senior basis by CBRE Group, Inc. and any domestic subsidiary that guarantees the 2021 Credit Agreement. In addition, our 2021 Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the 2021 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 2021 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 2021 Credit Agreement), 4.75x) as of the end of each fiscal quarter. Our coverage ratio of consolidated EBITDA to consolidated interest expense was 54.94x for the year ended December 31, 2021, and our leverage ratio of total debt less available cash to consolidated EBITDA was (0.04)x as of December 31, 2021. Short-Term Borrowings We had short-term borrowings of $1.3 billion and $1.4 billion as of December 31, 2021 and 2020, respectively, with related weighted average interest rates of 1.6% and 1.7%, respectively, which are included in the accompanying consolidated balance sheets. Revolving Credit Facilities The revolving credit facility under the 2021 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 $320.0 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 0.68% 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 2021 Credit Agreement). The 2021 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 January 1, 2022, pursuant to an amendment to the 2021 Credit Agreement entered into on December 10, 2021, the applicable fixed rate for revolving borrowings denominated in Euros has been changed to EURIBOR and the applicable fixed rate for revolving borrowings denominated in Sterling has been changed to SONIA (with SONIA-based borrowings subject to a “credit spread adjustment” of an additional 0.0326% in addition to the interest rate spreads described above). As of December 31, 2021, 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. Turner & Townsend has a revolving credit facility with a capacity of £80.0 million and a maturity date of May 5, 2022. Existing borrowing under the revolving credit facility bears interest at three-month LIBOR plus 0.75% and ends February 10, 2022. Future borrowings bear interest at the SONIA overnight rate plus 1.0266% to 2.0266%, determined by reference to gearing (as defined in the 2021 credit agreement). As of December 31, 2021, $27.0 million was outstanding under the revolving credit facility. 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, 2021 | |
Leases [Abstract] | |
Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in thousands): December 31, Category Classification 2021 2020 Assets Operating Operating lease assets $ 1,046,377 $ 1,020,352 Financing Other assets, net 110,809 117,805 Total leased assets $ 1,157,186 $ 1,138,157 Liabilities Current: Operating Operating lease liabilities $ 232,423 $ 208,526 Financing Other current liabilities 38,103 39,298 Non-current: Operating Non-current operating lease liabilities 1,116,562 1,116,795 Financing Other liabilities 73,257 78,881 Total lease liabilities $ 1,460,345 $ 1,443,500 Components of lease cost are as follows (dollars in thousands): Year Ended December 31, Component Classification 2021 2020 Operating lease cost Operating, administrative and other $ 196,685 $ 204,415 Financing lease cost: Amortization of right-to-use assets (1) 36,376 38,568 Interest on lease liabilities Interest expense 1,301 1,847 Variable lease cost (2) 70,091 74,332 Sublease income Revenue (2,271) (2,643) Total lease cost $ 302,182 $ 316,519 _______________ (1) Amortization costs of $31.9 million and $32.7 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, 2021 and 2020, respectively. Amortization costs of $4.4 million and $5.9 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, 2021 and 2020, respectively. (2) Variable lease costs of $16.8 million and $17.1 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, 2021 and 2020, respectively. Variable lease costs of $53.3 million and $55.6 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, 2021 and 2020, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows: December 31, 2021 2020 Weighted-average remaining lease term: Operating leases 8 years 8 years Financing leases (1) 72 years 71 years Weighted-average discount rate: Operating leases 2.9% 3.1% Financing leases (1) 5.0% 5.0% _______________ (1) Finance leases as of December 31, 2021 and 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 1.8%, respectively, as of December 31, 2021 and 3 years and 2.1%, respectively, as of December 31, 2020. Maturities of lease liabilities by fiscal year as of December 31, 2021 are as follows (dollars in thousands): Operating Financing 2022 $ 233,249 $ 38,058 2023 227,269 31,013 2024 202,485 19,774 2025 185,185 8,027 2026 153,623 2,335 Thereafter 513,462 222,142 Total remaining lease payments at December 31, 2021 1,515,273 321,349 Less: Interest 166,288 209,989 Present value of lease liabilities at December 31, 2021 $ 1,348,985 $ 111,360 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, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 202,690 $ 170,317 Operating cash flows from financing leases 2,876 2,077 Financing cash flows from financing leases 41,211 40,304 Right-of-use assets obtained in exchange for new operating lease liabilities 199,275 177,384 Right-of-use assets obtained in exchange for new financing lease liabilities 39,460 61,218 Other non-cash increases (decreases) in operating lease right-of-use assets (1) 12,126 (17,621) Other non-cash decreases in financing lease right-of-use assets (1) (2,754) (1,233) _______________ (1) The non-cash activity in the right-of-use assets resulted from lease modifications and remeasurements. |
Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in thousands): December 31, Category Classification 2021 2020 Assets Operating Operating lease assets $ 1,046,377 $ 1,020,352 Financing Other assets, net 110,809 117,805 Total leased assets $ 1,157,186 $ 1,138,157 Liabilities Current: Operating Operating lease liabilities $ 232,423 $ 208,526 Financing Other current liabilities 38,103 39,298 Non-current: Operating Non-current operating lease liabilities 1,116,562 1,116,795 Financing Other liabilities 73,257 78,881 Total lease liabilities $ 1,460,345 $ 1,443,500 Components of lease cost are as follows (dollars in thousands): Year Ended December 31, Component Classification 2021 2020 Operating lease cost Operating, administrative and other $ 196,685 $ 204,415 Financing lease cost: Amortization of right-to-use assets (1) 36,376 38,568 Interest on lease liabilities Interest expense 1,301 1,847 Variable lease cost (2) 70,091 74,332 Sublease income Revenue (2,271) (2,643) Total lease cost $ 302,182 $ 316,519 _______________ (1) Amortization costs of $31.9 million and $32.7 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, 2021 and 2020, respectively. Amortization costs of $4.4 million and $5.9 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, 2021 and 2020, respectively. (2) Variable lease costs of $16.8 million and $17.1 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, 2021 and 2020, respectively. Variable lease costs of $53.3 million and $55.6 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, 2021 and 2020, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows: December 31, 2021 2020 Weighted-average remaining lease term: Operating leases 8 years 8 years Financing leases (1) 72 years 71 years Weighted-average discount rate: Operating leases 2.9% 3.1% Financing leases (1) 5.0% 5.0% _______________ (1) Finance leases as of December 31, 2021 and 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 1.8%, respectively, as of December 31, 2021 and 3 years and 2.1%, respectively, as of December 31, 2020. Maturities of lease liabilities by fiscal year as of December 31, 2021 are as follows (dollars in thousands): Operating Financing 2022 $ 233,249 $ 38,058 2023 227,269 31,013 2024 202,485 19,774 2025 185,185 8,027 2026 153,623 2,335 Thereafter 513,462 222,142 Total remaining lease payments at December 31, 2021 1,515,273 321,349 Less: Interest 166,288 209,989 Present value of lease liabilities at December 31, 2021 $ 1,348,985 $ 111,360 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, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 202,690 $ 170,317 Operating cash flows from financing leases 2,876 2,077 Financing cash flows from financing leases 41,211 40,304 Right-of-use assets obtained in exchange for new operating lease liabilities 199,275 177,384 Right-of-use assets obtained in exchange for new financing lease liabilities 39,460 61,218 Other non-cash increases (decreases) in operating lease right-of-use assets (1) 12,126 (17,621) Other non-cash decreases in financing lease right-of-use assets (1) (2,754) (1,233) _______________ (1) 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, 2021 | |
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 with unpaid principal balances of $35.2 billion at December 31, 2021, of which $31.2 billion is subject to such loss sharing arrangements. 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, 2021 and 2020, CBRE MCI had a $100.0 million and a $95.0 million, respectively, letter of credit under this reserve arrangement and had recorded a liability of approximately $64.0 million and $57.1 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 $611.3 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, 2021. 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, 2021, total advances for principal and interest were $9.3 million, all of which 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, 2021 and 2020, CBRE Capital Markets had posted a $5.0 million letter of credit under this reserve arrangement. We had outstanding letters of credit totaling $159.1 million as of December 31, 2021, 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 $105.0 million as of December 31, 2021 referred to in the preceding paragraphs represented the majority of the $159.1 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 $50.9 million as of December 31, 2021, 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 $50.9 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, 2021, 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, 2021, we had aggregate commitments of $127.1 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, 2021, we had committed to fund $40.7 million of additional capital to these unconsolidated subsidiaries and $141.6 million to consolidated projects. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, assuming the maximum number of shares under our performance-based awards will later be issued, 30,148 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, 2021, 3,591,138 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, 2021, 748,003 shares were cancelled and 564,503 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 11,023,007 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, 2021, 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), 3,590,079 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, 2021, 2020 and 2019. • During the year ended December 31, 2021, we granted RSUs that are performance vesting in nature, with 734,352 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 969,299 RSUs that are time vesting in nature. • 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. 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, we made grants under this Special RSU grant program to certain of our employees, with 73,297 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 20,942 RSUs that are time vesting in nature. No such grants were made during 2020. During 2021, we granted additional RSUs to certain of our employees, with 146,080 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels. There were no time vesting RSUs associated with the 2021 grants. As a condition to this Special RSU grant, each participant has agreed to execute a Restrictive Covenants Agreement. Each Special RSU grant (except the ones granted during 2021, which are all performance based) 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 earnings 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 dates of the grants using a Monte Carlo simulation with the following assumptions: Year Ended December 31 (1) , 2021 (2) 2019 Volatility of common stock 42.71% - 45.80% 25.96 % Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 0.25% - 0.28% 2.12 % _______________ (1) There were no grants during 2020. (2) 2021 grants were made during different dates therefore a range of inputs is presented. In November 2021, we made a special grant of RSUs under our 2019 Plan (Segment RSU Grant) to certain of our employees in Advisory Services and GWS segments, with 1,297,345 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 370,670 RSUs that are time vesting in nature. As a condition to this Segment RSU Grant, each participant has agreed to execute a Restrictive Covenants Agreement. Each Segment RSU Grant consisted of: (i) Time Vesting RSUs with respect to 33.3% of the total number of target RSUs subject to the grant, which cliff vests on November 10, 2026. (ii) Segment Performance RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. The actual number of Segment Performance RSUs that will vest is determined by measuring growth in certain segment specific metrics such as client operating profit, segment operating profit and major markets over a five year measurement period commencing on January 1, 2022 and ending on December 31, 2026. (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 earnings per share growth against the cumulative EPS growth, as reported under GAAP, to a comparative group comprised of each of the other companies comprising the S&P 500 on the grant date over a five year measurement period commencing on January 1, 2022 and ending on December 31, 2026. 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, 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 Granted 2,531,959 92.16 Performance award achievement adjustments (189,930) 49.76 Vested (1,883,652) 46.34 Forfeited (292,998) 55.80 Balance at December 31, 2021 6,848,791 64.10 Total compensation expense related to non-vested stock awards was $184.9 million, $60.4 million and $127.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. At December 31, 2021, total unrecognized estimated compensation cost related to non-vested stock awards was approximately $269.4 million, which is expected to be recognized over a weighted average period of approximately 3.2 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 $871.7 million, $557.6 million and $554.6 million for the years ended December 31, 2021, 2020 and 2019, 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. Effective October 1, 2021, all active participants vest in company match contributions at 33% per year for each plan year they are employed. For 2021, 2020 and 2019, 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, or who are commissioned employees (up to $150,000 of compensation). Effective January 1, 2022, we will contribute 67% on the first 6% of eligible compensation contributed to the plan (up to $150,000 of eligible pay) for all employees regardless of base compensation or commissioned status. In connection with the 401(k) Plan, we charged to expense $72.4 million, $83.5 million and $59.9 million for the years ended December 31, 2021, 2020 and 2019, 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, 2021, approximately 1.1 million shares of our common stock were held as investments by participants in our 401(k) Plan. Pension Plans We have 2 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, 2021 and 2020, the fair values of pension plan assets were $411.1 million and $378.9 million, and the fair values of projected benefit obligations were $437.5 million and $470.1 million, respectively. As a result, these plans were underfunded by approximately $26.4 million and $91.2 million at December 31, 2021 and 2020. As of December 31, 2021, 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 were $524.3 million and $438.2 million as of December 31, 2021, respectively, and $558.4 million and $403.5 million as of December 31, 2020, 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 $119.9 million and $165.9 million as of December 31, 2021 and 2020, respectively, and were included in accumulated other comprehensive loss in the accompanying consolidated balance sheets. During 2021, there were gains on plan obligations of $22.1 million as a result of changes in actuarial assumptions. During 2020, there were losses on plan obligations of $27.7 million primarily as a result of changes in assumptions resulting in a loss of $37.1 million which was partially offset by $9.5 million in net gains due to plan experience. Net periodic pension benefit was $8.9 million for the year ended December 31, 2021, and not material for the years ended December 31, 2020 and 2019. 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, 2021 2020 Other assets, net $ 73,990 $ 58,410 Other current liabilities 19,788 19,432 Other liabilities 69,478 135,440 The following table presents estimated future benefit payments over the next ten years, as of December 31, 2021. 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): 2022 2023 2024 2025 2026 2027-2031 Estimated future benefit payments for $ 39,377 $ 39,103 $ 40,432 $ 42,190 $ 43,004 $ 231,643 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Domestic $ 1,683,710 $ 470,181 $ 839,899 Foreign 725,711 499,788 521,446 Total $ 2,409,421 $ 969,969 $ 1,361,345 Our tax provision (benefit) consisted of the following (dollars in thousands): Year Ended December 31, 2021 2020 2019 Current provision: Federal $ 274,987 $ 18,951 $ (51,980) State 115,196 33,291 52,403 Foreign 238,273 88,994 163,833 Total current provision 628,456 141,236 164,256 Deferred provision: Federal 34,607 61,034 (74,432) State (4,395) 3,872 (5,760) Foreign (91,162) 7,959 (14,169) Total deferred provision (60,950) 72,865 (94,361) Total provision for income taxes $ 567,506 $ 214,101 $ 69,895 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, 2021 2020 2019 Federal statutory tax rate 21 % 21 % 21 % Foreign rate differential — — 4 State taxes, net of federal benefit 4 3 3 Non-deductible expenses — 1 1 Reserves for uncertain tax positions 1 — 1 Credits and exemptions (1) (2) (4) Outside basis differences recognized as a result of a legal entity restructuring — — (20) Other (1) (1) (1) Effective tax rate 24 % 22 % 5 % 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 years and the nature of our business we expect to generate sufficient capital gains in the remaining three 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. Cumulative tax effects of temporary differences are shown below (dollars in thousands): December 31, 2021 2020 Assets: Tax losses and tax credits $ 307,507 $ 334,303 Operating lease liabilities 269,960 358,066 Bonus and deferred compensation 381,408 295,690 Bad debt and other reserves 65,188 73,061 Pension obligation 5,007 18,026 All other 65,710 24,623 Deferred tax assets, before valuation allowance $ 1,094,781 $ 1,103,769 Less: Valuation allowance (273,256) (291,096) Deferred tax assets $ 821,525 $ 812,673 Liabilities: Tax effect on revenue items related to Topic 606 adoption $ — $ (16,784) Property and equipment (92,166) (88,595) Unconsolidated affiliates and partnerships (128,170) (59,544) Capitalized costs and intangibles (583,219) (313,099) Operating lease assets (240,261) (366,671) All other (25,935) (936) Deferred tax liabilities $ (1,069,751) $ (845,629) Net deferred tax liabilities $ (248,226) $ (32,956) As of December 31, 2021, we had a U.S. federal capital loss carryforward, offset by reserves for uncertain tax position, which will expire after 2024. As of December 31, 2021, there were deferred tax assets before valuation allowances of approximately $299.1 million related to foreign net operating losses (NOLs). The majority of the foreign NOLs carryforward indefinitely. In certain foreign jurisdictions NOLs expire each year beginning in 2021. The utilization of NOLs may be subject to certain limitations under U.S. federal, state and foreign laws. We have recorded a valuation allowance for deferred tax assets where we believe that it is more likely than not that the NOLs will not be utilized. We determined that as of December 31, 2021, $273.3 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, 2021, our valuation allowance decreased by approximately $17.8 million. The decrease was attributed to a reversal of the beginning of year valuation allowance of $12.3 million as certain foreign subsidiaries expect to utilize deferred tax assets before expiration as a result of current and forecasted earnings within the applicable jurisdiction, a reduction of $19.5 million due to foreign currency translation and tax rate changes, and an increase in valuation allowance of $14.0 million due to current year activities. We believe it is more likely than not that future operations will generate sufficient taxable income to realize the benefit of our deferred tax assets recorded as of December 31, 2021, net of valuation allowance. At December 31, 2021, we have undistributed earnings of certain foreign subsidiaries of approximately $4.4 billion for which we have indefinitely reinvested and not recognized deferred taxes. Estimating the amount of the unrecognized deferred tax is not practicable due to the complexity and variety of assumptions necessary to estimate the tax. In 2021, following the acquisition of Turner & Townsend, we recorded $20.4 million of deferred tax liability related to book over tax basis difference in Turner & Townsend. The deferred tax liability was offset by an increase to goodwill in purchase accounting and therefore did not impact 2021 income tax expense. The total amount of gross unrecognized tax benefits was approximately $191.9 million and $168.5 million as of December 31, 2021 and 2020, respectively. The total amount of unrecognized tax benefits that would affect our effective tax rate, if recognized, is $108.5 million as of December 31, 2021. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in thousands): Year Ended December 31, 2021 2020 Beginning balance, unrecognized tax benefits $ (168,516) $ (141,164) Gross increases - tax positions in prior period (4,478) (31,070) Gross decreases - tax positions in prior period 2,675 1,530 Gross increases - current-period tax positions (25,619) (9,688) Decreases relating to settlements 390 — Reductions as a result of lapse of statute of limitations 3,610 11,791 Foreign exchange movement — 85 Ending balance, unrecognized tax benefits $ (191,938) $ (168,516) Our continuing practice is to recognize accrued interest and/or penalties related to income tax matters within income tax expense. During the years ended December 31, 2021, 2020 and 2019, we accrued an additional $0.6 million, $0.4 million and $0.3 million, respectively, in interest and penalties associated with uncertain tax positions. As of December 31, 2021 and 2020, we have recognized a liability for interest and penalties of $3.8 million and $1.6 million, respectively. 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. 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 Australia, France, Hungary, Mexico, and Spain. With limited exception, our significant foreign tax jurisdictions are no longer subject to audit by the various tax authorities for tax years prior to 2012. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020, 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 332,875,959 shares and 335,561,345 shares were issued and outstanding as of December 31, 2021 and 2020, 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. 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 program for the repurchase of 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 our program, bringing the total authorized repurchase amount under the program to a total of $500.0 million. During the year ended December 31, 2021, we repurchased 3,122,054 shares of our common stock with an average price of $92.03 per share using cash on hand for $287.3 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. On November 19, 2021, our board of directors authorized a new program for repurchase of up to $2.0 billion of our common stock over five years. During the year ended December 31, 2021, we spent $85.6 million to repurchase 832,315 shares of our common stock with an average price of $102.82 per share. |
Income Per Share Information
Income Per Share Information | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 1,836,574 $ 751,989 $ 1,282,357 Weighted average shares outstanding for basic income per share 335,232,840 335,196,296 335,795,654 Basic income per share attributable to CBRE Group, Inc. stockholders $ 5.48 $ 2.24 $ 3.82 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 1,836,574 $ 751,989 $ 1,282,357 Weighted average shares outstanding for basic income per share 335,232,840 335,196,296 335,795,654 Dilutive effect of contingently issuable shares 4,484,561 3,195,914 4,727,217 Weighted average shares outstanding for diluted income per share 339,717,401 338,392,210 340,522,871 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 5.41 $ 2.22 $ 3.77 For the years ended December 31, 2021, 2020 and 2019, 186,241, 567,589 and 374,555, 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, 2021 | |
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, 2021 Advisory Global Real Estate Corporate, Consolidated Topic 606 Revenue: Facilities management $ — $ 14,166,987 $ — $ — $ 14,166,987 Advisory leasing 3,306,548 — — 1,623 3,308,171 Advisory sales 2,789,573 — — — 2,789,573 Property management 1,739,011 — — (21,979) 1,717,032 Project management — 2,931,930 — — 2,931,930 Valuation 733,523 — — — 733,523 Commercial mortgage origination (1) 313,704 — — — 313,704 Loan servicing (2) 43,218 — — — 43,218 Investment management — — 556,154 — 556,154 Development services — — 390,074 — 390,074 Topic 606 Revenue 8,925,577 17,098,917 946,228 (20,356) 26,950,366 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 387,664 — — — 387,664 Loan servicing 262,518 — — — 262,518 Development services (3) — — 145,488 — 145,488 Total Out of Scope of Topic 606 Revenue 650,182 — 145,488 — 795,670 Total Revenue $ 9,575,759 $ 17,098,917 $ 1,091,716 $ (20,356) $ 27,746,036 Year Ended December 31, 2020 Advisory Services (4) Global Workplace Solutions (4) Real Estate Corporate, other and eliminations (4) Consolidated Topic 606 Revenue: Facilities management $ — $ 13,484,692 $ — $ — $ 13,484,692 Advisory leasing 2,460,392 — — (2,274) 2,458,118 Advisory sales 1,663,959 — — — 1,663,959 Property management 1,658,593 — — (25,656) 1,632,937 Project management — 2,323,341 — — 2,323,341 Valuation 614,157 — — — 614,157 Commercial mortgage origination (1) 130,897 — — — 130,897 Loan servicing (2) 45,692 — — — 45,692 Investment management — — 474,939 — 474,939 Development services — — 341,387 — 341,387 Topic 606 Revenue 6,573,690 15,808,033 816,326 (27,930) 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 $ 7,214,562 $ 15,808,033 $ 831,530 $ (27,930) $ 23,826,195 Year Ended December 31, 2019 Advisory Services (4) Global Workplace Solutions (4) Real Estate Corporate, other and eliminations (4) Consolidated Topic 606 Revenue: Facilities management $ — $ 12,283,868 $ — $ — $ 12,283,868 Advisory leasing 3,375,937 — — (1,170) 3,374,767 Advisory sales 2,164,676 — — — 2,164,676 Property management 1,700,382 — — (21,817) 1,678,565 Project management — 2,317,951 — — 2,317,951 Valuation 630,943 — — — 630,943 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 8,057,108 14,601,819 638,146 (22,987) 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 $ 8,654,637 $ 14,601,819 $ 660,622 $ (22,987) $ 23,894,091 _______________________________ (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) Prior period segment results have been recast to conform to the changes as discussed in Note 19. Contract Assets and Liabilities We had contract assets totaling $474.4 million ($338.7 million of which was current) and $471.8 million ($318.2 million of which was current) as of December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, our contract assets decreased by $2.5 million, primarily due to a decrease in contract assets in our advisory business. We had contract liabilities totaling $288.9 million ($280.7 million of which was current) and $164.1 million ($162.0 million of which was current) as of December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, we recognized revenue of $152.0 million that was included in the contract liability balance at December 31, 2020. Contract Costs Within our Global Workplace Solutions segment, we incur transition costs to fulfill contracts prior to services being rendered. We capitalized $84.9 million, $64.2 million and $69.3 million, respectively, of transition costs during the years ended December 31, 2021, 2020 and 2019. We recorded amortization of transition costs of $40.3 million, $46.9 million and $32.3 million, respectively, during the years ended December 31, 2021, 2020 and 2019. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2021 | |
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. Effective January 1, 2021, we realigned our organizational structure and performance measure to how our chief operating decision maker (CODM) views the company. This includes a “Corporate, other and elimination” component and a segment measurement of profit and loss referred to as segment operating profit. In addition, transaction services was fully moved under the Advisory Services segment and project management was fully moved under the Global Workplace Solutions segment. Previously transaction services and project management were split between the Global Workplace Solutions segment and the Advisory Services segment. Our Corporate segment primarily consists of corporate headquarters costs for executive officers and certain other central functions. We track our strategic non-core non-controlling equity investments in “other” which is considered an operating segment and reported together with Corporate as it does not meet the aggregation criteria for presentation as a separate reportable segment. These activities are not allocated to the other business segments. Corporate and other also includes eliminations related to inter-segment revenue. Segment operating profit (SOP) is the measure reported to the CODM for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of amount attributable to non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, 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, costs associated with workforce optimization, costs associated with our reorganization, transformation initiatives and integration and other costs related to acquisitions. This metric excludes the impact of corporate overhead as these costs are now reported under Corporate and other. We changed the definition of SOP to include net income (loss) attributable to non-controlling interest to provide a more meaningful view of the segment’s performance and related margins and to conform to the CODM’s view of the business segments. Prior period segment results for all of our reportable segments have been recast to conform to the above changes. Summarized financial information by segment is as follows (dollars in thousands): Year Ended December 31, 2021 2020 2019 Revenue Advisory Services $ 9,575,759 $ 7,214,562 $ 8,654,637 Global Workplace Solutions 17,098,917 15,808,033 14,601,819 Real Estate Investments 1,091,716 831,530 660,622 Corporate, other and eliminations (20,356) (27,930) (22,987) Total revenue $ 27,746,036 $ 23,826,195 $ 23,894,091 Depreciation and Amortization Advisory Services $ 311,397 $ 311,445 $ 275,270 Global Workspace Solutions 158,757 134,383 130,427 Real Estate Investments 27,111 27,367 13,483 Corporate, other and eliminations 28,606 28,533 20,044 Total depreciation and amortization $ 525,871 $ 501,728 $ 439,224 Equity Income (Loss) from Unconsolidated Subsidiaries Advisory Services $ 24,778 $ 4,526 $ 3,110 Global Workspace Solutions 1,720 90 (927) Real Estate Investments 555,341 123,548 155,454 Corporate, other and eliminations 36,858 (2,003) 3,288 Total equity income from unconsolidated subsidiaries $ 618,697 $ 126,161 $ 160,925 Segment Operating Profit Advisory Services $ 2,063,227 $ 1,347,826 $ 1,690,959 Global Workplace Solutions 708,039 575,299 475,767 Real Estate Investments 520,001 257,700 209,666 Total reportable segment operating profit $ 3,291,267 $ 2,180,825 $ 2,376,392 Reconciliation of total reportable segment operating profit to net income is as follows (dollars in thousands): Year Ended December 31, 2021 2020 2019 Net income attributable to CBRE Group, Inc. $ 1,836,574 $ 751,989 $ 1,282,357 Net income attributable to non-controlling interests 5,341 3,879 9,093 Net income 1,841,915 755,868 1,291,450 Adjustments to increase (decrease) net income: Depreciation and amortization 525,871 501,728 439,224 Asset impairments — 88,676 89,787 Interest expense, net of interest income 50,352 67,753 85,754 Write-off of financing costs on extinguished debt — 75,592 2,608 Provision for income taxes 567,506 214,101 69,895 Costs associated with transformation initiatives (1) — 155,148 — Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue 49,941 (22,912) 13,101 Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period (5,725) 11,598 9,301 Costs incurred related to legal entity restructuring — 9,362 6,899 Integration and other costs related to acquisitions 44,552 1,756 15,292 Costs associated with workforce optimization efforts (2) — 37,594 — Costs associated with our reorganization, including cost-savings initiatives (3) — — 49,565 Corporate and other loss, including eliminations 216,855 284,561 303,516 Total reportable segment operating profit $ 3,291,267 $ 2,180,825 $ 2,376,392 _______________ (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, 2021 2020 2019 Revenue United States $ 15,700,279 $ 13,472,013 $ 13,852,018 United Kingdom 3,617,504 3,083,810 2,972,704 All other countries 8,428,253 7,270,372 7,069,369 Total revenue $ 27,746,036 $ 23,826,195 $ 23,894,091 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
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 $475.2 million and $424.2 million as of December 31, 2021 and 2020, 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 3.07% per annum and mature on various dates through 2030. |
Transformation Initiatives
Transformation Initiatives | 12 Months Ended |
Dec. 31, 2021 | |
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 Of the total charges incurred, net of depreciation expense, $42.1 million was included within the “Cost of revenue” line item and $113.0 million was included in the “Operating, administrative, and other” line item in the accompanying consolidated statement of operations for the year ended December 31, 2020. We did not incur any significant costs related to these initiatives during the year ended December 31, 2021. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
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 Doubtful Accounts 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 Additions: Charges to expense 17,818 Deductions: Write-offs, payments and other 15,763 Balance, December 31, 2021 $ 97,588 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 and related interests 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, 2021, 2020 and 2019. |
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, 2021 and 2020 is cash and cash equivalents of $125.2 million and $102.9 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, 2021 and 2020 is restricted cash of $108.8 million and $143.1 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 $8.6 billion and $8.1 billion at December 31, 2021 and 2020, 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 |
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, 2021 2020 Real estate under development, current (included in other current assets) $ 96,237 $ 55,072 Real estate and other assets held for sale (included in other current assets) 142 3,710 Real estate under development 326,416 277,630 Real estate held for investment (included in other assets, net) 4,447 3,795 Total real estate $ 427,242 $ 340,207 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. Deferred consideration arrangements granted in connection with a business combination are evaluated to determine whether all or a portion is, in substance, additional purchase price or compensation for services. Additional purchase price is added to the fair value of consideration transferred in the business combination and compensation is included in operating expenses in the period it is incurred. 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, our acquisition of Telford Homes Plc (Telford) in 2019 and our acquisition of a majority interest in Turner & Townsend in 2021. 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, and a trademark identified as part of the Turner & Townsend Acquisition. 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. |
Business Combinations | Business Combinations We estimate the fair value of identifiable assets, liabilities and any non-controlling interests acquired in a business combination and recognize goodwill as the excess of the purchase price over the recorded value of the acquired assets and liabilities in accordance with ASC Topic 805. When estimating the fair value of acquired assets, we utilize various valuation models which may require significant judgment, particularly where observable market values do not exist. Inputs requiring significant judgment may include discount rates, growth rates, cost of capital, royalty rates, tax rates, market values, depreciated replacement costs, selling prices less costs to dispose, and remaining useful lives, among others. Reasonable differences in these inputs could have a significant impact on the estimated value of acquired assets, the resulting value of goodwill, subsequent depreciation and amortization expense, and the results of future asset impairment evaluations. |
Leases | Leases We are the lessee in contracts for our office space tenancies, for leased vehicles and for certain legacy units in our indirect wholly-owned subsidiary CBRE Hana, LLC (Hana). We monitor our service arrangements to evaluate whether they meet the definition of a lease. 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, Remaining Performance Obligations, Contract Assets and Contract Liabilities, and Contract Costs | 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. 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 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 Services We provide property management services on a contractual basis for owners of and investors in office, industrial and retail properties. These services include 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. 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, and project management services. 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 construction management, 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. Real Estate Investments Our Real Estate Investments segment is comprised of investment management services provided globally; development services in the U.S., the U.K. and Europe 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., the U.K. and Europe to users of and investors in commercial real estate, as well as for our own account. 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. 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, 2021, 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 and Allowance for Doubtful Accounts | 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 Receivables Our 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. At December 31, 2021 and 2020, 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. |
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, 2021 and 2020 was as follows (dollars in thousands): Year Ended December 31, 2021 2020 Beginning balance, mortgage servicing rights $ 556,931 $ 483,492 Mortgage servicing rights recognized 193,835 207,827 Mortgage servicing rights sold — (122) Amortization expense (172,250) (134,266) Ending balance, mortgage servicing rights $ 578,516 $ 556,931 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, 2021, 2020 and 2019 in measuring fair value were as follows: Year Ended December 31, 2021 2020 2019 Discount rate 12.62 % 11.73 % 10.12 % Conditional prepayment rate 9.78 % 9.80 % 10.34 % |
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 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. 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 | Investments Held in Trust - Special Purpose Acquisition Company As part of the initial public offering of CBRE Acquisition Holdings, Inc., $402.5 million was deposited in an interest-bearing U.S. based trust account (Trust Account). The funds in the Trust Account were 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 did not qualify as either cash or restricted cash and prior to the SPAC Merger remained in the Trust Account except for the withdrawal of interest earned on the funds that could have been released to CBRE Acquisition Holdings to pay taxes. The Trust Account was derecognized upon the SPAC Merger. Non-controlling Interest Subject to Possible Redemption - Special Purpose Acquisition Company Prior to the SPAC Merger, the company accounted 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 featured certain redemption rights that allowed investors to redeem common stock at $10.00 per share and was therefore 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 was presented at redemption value as temporary equity, outside of the stockholders’ equity section in the accompanying consolidated financial statements as of December 31, 2020. |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements During 2021, we identified an error related to purchase of marketable securities in the SPAC trust account within the previously issued Consolidated Statements of Cash Flows. While the error affects the cash flows from investing and financing activities, the error had no impact on the net increase in cash and restricted cash for the previously reported period. We assessed the materiality of the error on prior period financial statements in accordance with SEC Staff Accounting Bulletin (SAB) Number 99, Materiality , as codified in ASC 250-10, Accounting Changes and Error Corrections . We determined that this error was not material to the December 31, 2020 financial statements. Accordingly, December 31, 2020, as the comparative period in the December 31, 2021 financial statements, has been corrected in the Consolidated Statements of Cash Flows as described below (dollars in thousands): Year Ended December 31, 2020 As Previously Reported Adjustments As Corrected Net cash used in investing activities $ (341,585) $ (402,500) $ (744,085) Net cash used in financing activities $ (625,256) $ 402,500 $ (222,756) |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (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 adopted ASU 2019‑12 in the first quarter of 2021 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. 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 adopted ASU 2020‑01 in the first quarter of 2021 and the adoption did not have a material impact 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 the Accounting Standards Codification (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 adopted ASU 2020-08 in the first quarter of 2021 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. 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 adopted ASU 2020-10 in the first quarter of 2021 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. Recent Accounting Pronouncements Pending Adoption In March 2020 and January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” and ASU 2021-01, “ Reference Rate Reform: Scope ,” respectively. Together, the ASUs provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective for a limited time for all entities through December 31, 2022. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. In July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments (Topic 842) .” The ASU amends the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if certain criteria are met. This guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We are evaluating the effect that ASU 2021-05 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In October 2021, the FASB issued ASU 2021-08, “ Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We are evaluating the effect that ASU 2021-08 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In November 2021, the FASB issued ASU 2021-10, “ Disclosures by Business Entities about Government Assistance .” This ASU requires annual disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for fiscal years beginning after December 15, 2021. Early application is permitted. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. We are evaluating the effect that ASU 2021-10 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (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 adopted ASU 2019‑12 in the first quarter of 2021 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. 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 adopted ASU 2020‑01 in the first quarter of 2021 and the adoption did not have a material impact 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 the Accounting Standards Codification (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 adopted ASU 2020-08 in the first quarter of 2021 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. 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 adopted ASU 2020-10 in the first quarter of 2021 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. Recent Accounting Pronouncements Pending Adoption In March 2020 and January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” and ASU 2021-01, “ Reference Rate Reform: Scope ,” respectively. Together, the ASUs provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective for a limited time for all entities through December 31, 2022. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. In July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments (Topic 842) .” The ASU amends the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if certain criteria are met. This guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We are evaluating the effect that ASU 2021-05 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In October 2021, the FASB issued ASU 2021-08, “ Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We are evaluating the effect that ASU 2021-08 will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In November 2021, the FASB issued ASU 2021-10, “ Disclosures by Business Entities about Government Assistance .” This ASU requires annual disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for fiscal years beginning after December 15, 2021. Early application is permitted. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. We are evaluating the effect that ASU 2021-10 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, 2021 | |
Accounting Policies [Abstract] | |
Summary of Real Estate Assets | A summary of our real estate assets is as follows (dollars in thousands): December 31, 2021 2020 Real estate under development, current (included in other current assets) $ 96,237 $ 55,072 Real estate and other assets held for sale (included in other current assets) 142 3,710 Real estate under development 326,416 277,630 Real estate held for investment (included in other assets, net) 4,447 3,795 Total real estate $ 427,242 $ 340,207 |
Schedule of Loan Servicing Rights Recognized | The amount of MSRs recognized during the years ended December 31, 2021 and 2020 was as follows (dollars in thousands): Year Ended December 31, 2021 2020 Beginning balance, mortgage servicing rights $ 556,931 $ 483,492 Mortgage servicing rights recognized 193,835 207,827 Mortgage servicing rights sold — (122) Amortization expense (172,250) (134,266) Ending balance, mortgage servicing rights $ 578,516 $ 556,931 |
Schedule of Assumptions Used in Measuring Fair Value of Servicing Assets | The key assumptions used during the years ended December 31, 2021, 2020 and 2019 in measuring fair value were as follows: Year Ended December 31, 2021 2020 2019 Discount rate 12.62 % 11.73 % 10.12 % Conditional prepayment rate 9.78 % 9.80 % 10.34 % |
Schedule of Prior Period Adjustments | Accordingly, December 31, 2020, as the comparative period in the December 31, 2021 financial statements, has been corrected in the Consolidated Statements of Cash Flows as described below (dollars in thousands): Year Ended December 31, 2020 As Previously Reported Adjustments As Corrected Net cash used in investing activities $ (341,585) $ (402,500) $ (744,085) Net cash used in financing activities $ (625,256) $ 402,500 $ (222,756) |
Turner & Townsend Acquisition (
Turner & Townsend Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The Turner & Townsend Acquisition was funded with cash on hand. The following summarizes the consideration transferred at closing for the Turner & Townsend Acquisition (dollars in thousands): Cash consideration (1) $ 722,595 Deferred consideration (2) 494,349 Total consideration $ 1,216,944 _______________ (1) Represents cash paid at closing (2) Represents the fair value of deferred consideration, to be settled in cash, with the only remaining condition on such payments being the passage of time |
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 and fair value of non-controlling interest (dollars in thousands): Purchase price $ 1,216,944 Less: Estimated fair value of net assets acquired (see table below) 152,027 Plus: Estimated fair value of non-controlling interest (1) 32,416 Excess purchase price over estimated fair value of net assets acquired $ 1,097,333 _______________ (1) Represents fair value of legacy non-controlling interest of Turner & Townsend |
Summary of Aggregate Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values assigned to the identified assets acquired and liabilities assumed at the acquisition date on November 1, 2021. (Dollars in thousands) Assets Acquired: Cash and cash equivalents $ 44,007 Trade and other receivables 239,269 Prepaid expenses 7,969 Other current assets 19,359 Property and equipment, net 57,138 Other intangible assets, net 1,104,968 Operating lease assets 44,249 Other assets, net 8,427 Total assets acquired 1,525,386 Liabilities Assumed: Accounts payable and accrued expenses 59,986 Compensation and employee benefits 34,557 Operating lease liabilities 11,144 Contract liabilities 44,943 Other current liabilities 126,034 Non-current operating lease liabilities 30,939 Deferred tax liability 291,634 Total liabilities assumed 599,237 Non-controlling Interest Acquired 774,122 Estimated Fair Value of Net Assets Acquired $ 152,027 |
Schedule of Trademarks Acquired as Part of Business Combination | In connection with the Turner & Townsend Acquisition, below is a summary of the preliminary value allocated to the intangible assets acquired (dollars in thousands): December 31, 2021 Asset Class Amortization Amount Accumulated Amortization Net Carrying Customer relationships 5-11 years $ 753,935 $ 21,577 $ 732,358 Backlog 2-4 years 75,407 5,255 70,152 Trademark Indefinite 275,626 3,202 272,424 |
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 Turner & Townsend Acquisition occurred on January 1, 2020 and may not be indicative of future operating results (dollars in thousands, except share data): Year Ended December 31, 2021 2020 Revenue $ 28,545,833 $ 24,715,787 Operating income 1,705,982 944,102 Net income attributable to CBRE Group, Inc. 1,873,426 705,375 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 5.59 $ 2.10 Weighted average shares outstanding for basic income per share 335,232,840 335,196,296 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 5.51 $ 2.08 Weighted average shares outstanding for diluted income per share 339,717,401 338,392,210 |
Warehouse Receivables & Wareh_2
Warehouse Receivables & Warehouse Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 $ 1,411,170 Origination of mortgage loans 17,015,839 Gains (premiums on loan sales) 79,925 Proceeds from sale of mortgage loans: Sale of mortgage loans (17,114,681) Cash collections of premiums on loan sales (79,925) Proceeds from sale of mortgage loans (17,194,606) Net decrease in mortgage servicing rights included in warehouse receivables (8,611) Ending balance at December 31, 2021 $ 1,303,717 |
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, 2021 and 2020 (dollars in thousands): December 31, 2021 December 31, 2020 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 10/17/2022 daily floating rate SOFR rate plus 1.60% $ 1,335,000 $ 742,124 $ 1,585,000 $ 561,726 JP Morgan 10/17/2022 daily floating rate SOFR rate plus 2.75% 15,000 4,326 15,000 — Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program (2) Cancelable daily one-month LIBOR plus 1.45%, with a LIBOR floor of 0.25% 650,000 133,084 450,000 132,692 TD Bank, N.A. (TD Bank) (3) 7/15/2022 daily floating rate LIBOR plus 1.30% 800,000 217,672 800,000 401,849 Bank of America, N.A. (BofA) (4) 5/25/2022 daily floating rate LIBOR plus 1.30%, with a LIBOR floor of 0.30% 350,000 178,600 350,000 175,862 BofA (5) 5/25/2022 daily floating rate LIBOR plus 1.30%, with a LIBOR floor of 0.30% 250,000 — — — MUFG Union Bank, N.A. (Union Bank) (6) 6/28/2022 daily floating rate LIBOR plus 1.30% 200,000 1,645 300,000 111,835 $ 3,600,000 $ 1,277,451 $ 3,500,000 $ 1,383,964 _______________ (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. Effective October 18, 2021, this facility was renewed and amended and the maximum facility size was increased to $1,335.0 million. This facility has a revised maturity date of October 17, 2022 and a revised interest rate to a Secured Overnight Finance Rate (SOFR) term plus 1.60%, noting the Business Lending sublimit has a revised interest rate of daily adjusted term SOFR plus 2.75%. (2) Effective January 15, 2021, the maximum facility was temporarily increased to $650.0 million. (3) 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. Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30% and a maturity date of July 15, 2022. As of December 31, 2021, the uncommitted $400.0 million temporary line of credit was not utilized. (4) 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. Effective June 30, 2021, this facility was renewed with a revised interest rate of daily floating LIBOR plus 1.30% and a maturity date of May 25, 2022. The sublimit is subject to an interest rate of daily floating LIBOR plus 1.75%, with a LIBOR floor of 0.75%. As of December 31, 2021, the sublimit borrowing has not been utilized. (5) Effective June 30, 2021, the advised consent line was renewed for $250.0 million of capacity with a revised interest rate of daily floating LIBOR plus 1.30%, with a LIBOR floor of 0.30%, and a maturity date of May 25, 2022. (6) Effective August 4, 2020, this facility was amended to decrease the accordion feature from $150.0 million to $100.0 million. If utilized, the additional borrowings must be in predefined multiples and are not to occur more than 3 times within 12 consecutive months. On September 22, 2020, the temporary increase of $100.0 million was utilized and expired on January 20, 2021. Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30%, removing the LIBOR floor, and a maturity date of June 28, 2022 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Maximum Exposure to Loss | As of December 31, 2021 and 2020, our maximum exposure to loss related to the VIEs that are not consolidated was as follows (dollars in thousands): December 31, 2021 2020 Investments in unconsolidated subsidiaries $ 109,530 $ 66,947 Other current assets 4,219 4,219 Co-investment commitments 90,328 47,957 Maximum exposure to loss $ 204,077 $ 119,123 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020 (dollars in thousands): December 31, 2021 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 7,002 $ — $ — $ 7,002 Debt securities issued by U.S. federal agencies — 9,276 — 9,276 Corporate debt securities — 50,897 — 50,897 Asset-backed securities — 3,428 — 3,428 Collateralized mortgage obligations — 725 — 725 Total available for sale debt securities 7,002 64,326 — 71,328 Equity securities 69,880 — — 69,880 Investments in unconsolidated subsidiaries 229,900 23,741 406,690 660,331 Warehouse receivables — 1,303,717 — 1,303,717 Total assets at fair value $ 306,782 $ 1,391,784 $ 406,690 $ 2,105,256 Liabilities Other liabilities — — 10,700 10,700 Total liabilities at fair value $ — $ — $ 10,700 $ 10,700 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 |
Schedule of Reconciliation for Assets Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands): Investment in Unconsolidated Subsidiaries Other liabilities Balance as of December 31, 2020 $ 50,000 $ — Transfer in 5,174 — Net change in fair value 36,432 10,700 Purchases/ Additions 315,084 — Balance as of December 31, 2021 $ 406,690 $ 10,700 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other liabilities Other income |
Schedule of Reconciliation for Liabilities Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands): Investment in Unconsolidated Subsidiaries Other liabilities Balance as of December 31, 2020 $ 50,000 $ — Transfer in 5,174 — Net change in fair value 36,432 10,700 Purchases/ Additions 315,084 — Balance as of December 31, 2021 $ 406,690 $ 10,700 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other liabilities Other income |
Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments | The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments: Valuation Technique Unobservable Input Range Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 14% - 26% Monte Carlo Volatility 70 % Risk free interest rate 1.4 % Other liabilities Discounted cash flow Discount rate 25.5 % |
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 Fair Value Measured and Recorded Using Total Impairment Charges for the 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 Fair Value Measured and Recorded Using Total Impairment Charges for the 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, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following (dollars in thousands): December 31, Useful Lives 2021 2020 Computer hardware and software 2-10 years $ 1,101,248 $ 974,490 Leasehold improvements 1-15 years 622,771 554,252 Furniture and equipment 1-10 years 260,551 243,880 Construction in progress N/A 120,031 117,274 Total cost 2,104,601 1,889,896 Accumulated depreciation and amortization 1,288,509 1,074,887 Property and equipment, net $ 816,092 $ 815,009 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 (dollars in thousands): Advisory Global Real Estate Total 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 Reallocation (101,390) 101,390 — — Purchase accounting entries related to acquisitions 77,616 1,167,678 — 1,245,294 Impairment — — — — Foreign exchange movement (26,520) (32,836) (12,372) (71,728) Balance as of December 31, 2021 Goodwill 3,298,494 2,174,029 616,158 6,088,681 Accumulated impairment losses (761,448) (175,473) (156,585) (1,093,506) $ 2,537,046 $ 1,998,556 $ 459,573 $ 4,995,175 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets totaled $2.4 billion, net of accumulated amortization of $1.7 billion as of December 31, 2021, and $1.4 billion, net of accumulated amortization of $1.6 billion, as of December 31, 2020 and are comprised of the following (dollars in thousands): December 31, 2021 2020 Gross Accumulated Gross Accumulated Unamortizable intangible assets: Management contracts $ 63,153 $ 67,422 Trademarks 329,224 56,800 392,377 124,222 Amortizable intangible assets: Customer relationships 1,612,308 $ (667,668) 880,104 $ (603,866) Mortgage servicing rights 1,005,357 (426,841) 927,525 (370,634) Trademarks/Trade names 350,548 (126,468) 354,060 (111,595) Management contracts 151,912 (137,906) 152,312 (145,612) Covenant not to compete 73,750 (73,750) 73,750 (73,750) Other 548,455 (292,647) 412,477 (251,080) 3,742,330 (1,725,280) 2,800,228 (1,556,537) Total intangible assets $ 4,134,707 $ (1,725,280) $ 2,924,450 $ (1,556,537) |
Schedule of Finite-Lived Intangible Assets | Other intangible assets totaled $2.4 billion, net of accumulated amortization of $1.7 billion as of December 31, 2021, and $1.4 billion, net of accumulated amortization of $1.6 billion, as of December 31, 2020 and are comprised of the following (dollars in thousands): December 31, 2021 2020 Gross Accumulated Gross Accumulated Unamortizable intangible assets: Management contracts $ 63,153 $ 67,422 Trademarks 329,224 56,800 392,377 124,222 Amortizable intangible assets: Customer relationships 1,612,308 $ (667,668) 880,104 $ (603,866) Mortgage servicing rights 1,005,357 (426,841) 927,525 (370,634) Trademarks/Trade names 350,548 (126,468) 354,060 (111,595) Management contracts 151,912 (137,906) 152,312 (145,612) Covenant not to compete 73,750 (73,750) 73,750 (73,750) Other 548,455 (292,647) 412,477 (251,080) 3,742,330 (1,725,280) 2,800,228 (1,556,537) Total intangible assets $ 4,134,707 $ (1,725,280) $ 2,924,450 $ (1,556,537) |
Investments in Unconsolidated_2
Investments in Unconsolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Condensed Financial Information of Equity Method Investments | The following table represents the composition of investment in unconsolidated subsidiaries (dollars in thousands): December 31, Investment type 2021 2020 Real estate investments $ 453,813 $ 340,248 Investment in Altus: Class A common stock (22 million shares) 229,900 — Alignment shares (1) 114,727 — Private placement warrants (2) 23,741 — Subtotal $ 368,368 $ — Other (3) $ 373,907 $ 112,117 Total investment in unconsolidated subsidiaries $ 1,196,088 $ 452,365 _______________ (1) The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common shares based on the achievement of certain total return thresholds on Altus Class A common shares as of the relevant measurement date over the seven fiscal years following the merger. (2) These warrants entitle us to purchase one share of Altus Class A common stock at $11.00 per share, subject to adjustment. (3) Consists of our investments in Industrious and other non-public entities. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): December 31, 2021 2020 Combined Condensed Balance Sheets Information: Current assets $ 7,127,598 $ 6,508,718 Non-current assets 30,586,991 24,343,229 Total assets $ 37,714,589 $ 30,851,947 Current liabilities $ 3,128,205 $ 3,164,135 Non-current liabilities 8,875,779 6,696,352 Total liabilities $ 12,003,984 $ 9,860,487 Non-controlling interests $ 588,067 $ 460,904 Year Ended December 31, 2021 2020 2019 Combined Condensed Statements of Operations Information: Revenue $ 2,680,675 $ 2,036,818 $ 1,545,424 Operating income 1,371,014 587,689 549,111 Net income (1) 3,260,051 483,224 419,966 _______________ (1) Included in net income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income. |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Long-Term Debt Senior term loans, with interest ranging from 0.75% to 1.15%, due quarterly through March 4, 2024 $ 455,166 $ 788,759 4.875% senior notes due in 2026, net of unamortized discount 597,911 597,470 2.500% senior notes due in 2031 net of unamortized discount 492,782 — Other — 1,514 Total long-term debt 1,545,859 1,387,743 Less: current maturities of long-term debt — 1,514 Less: unamortized debt issuance costs 7,736 6,027 Total long-term debt, net of current maturities $ 1,538,123 $ 1,380,202 Short-Term Borrowings Warehouse lines of credit, with interest ranging from 1.40% to 2.89%, due in 2022 $ 1,277,451 $ 1,383,964 Other 32,668 5,330 Total short-term borrowings $ 1,310,119 $ 1,389,294 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 Assets Operating Operating lease assets $ 1,046,377 $ 1,020,352 Financing Other assets, net 110,809 117,805 Total leased assets $ 1,157,186 $ 1,138,157 Liabilities Current: Operating Operating lease liabilities $ 232,423 $ 208,526 Financing Other current liabilities 38,103 39,298 Non-current: Operating Non-current operating lease liabilities 1,116,562 1,116,795 Financing Other liabilities 73,257 78,881 Total lease liabilities $ 1,460,345 $ 1,443,500 |
Schedule of Components of Lease Costs | Components of lease cost are as follows (dollars in thousands): Year Ended December 31, Component Classification 2021 2020 Operating lease cost Operating, administrative and other $ 196,685 $ 204,415 Financing lease cost: Amortization of right-to-use assets (1) 36,376 38,568 Interest on lease liabilities Interest expense 1,301 1,847 Variable lease cost (2) 70,091 74,332 Sublease income Revenue (2,271) (2,643) Total lease cost $ 302,182 $ 316,519 _______________ (1) Amortization costs of $31.9 million and $32.7 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, 2021 and 2020, respectively. Amortization costs of $4.4 million and $5.9 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, 2021 and 2020, respectively. (2) Variable lease costs of $16.8 million and $17.1 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, 2021 and 2020, respectively. Variable lease costs of $53.3 million and $55.6 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, 2021 and 2020, 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, 2021 2020 Weighted-average remaining lease term: Operating leases 8 years 8 years Financing leases (1) 72 years 71 years Weighted-average discount rate: Operating leases 2.9% 3.1% Financing leases (1) 5.0% 5.0% _______________ (1) Finance leases as of December 31, 2021 and 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 1.8%, respectively, as of December 31, 2021 and 3 years and 2.1%, respectively, as of December 31, 2020. |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities by fiscal year as of December 31, 2021 are as follows (dollars in thousands): Operating Financing 2022 $ 233,249 $ 38,058 2023 227,269 31,013 2024 202,485 19,774 2025 185,185 8,027 2026 153,623 2,335 Thereafter 513,462 222,142 Total remaining lease payments at December 31, 2021 1,515,273 321,349 Less: Interest 166,288 209,989 Present value of lease liabilities at December 31, 2021 $ 1,348,985 $ 111,360 |
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, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 202,690 $ 170,317 Operating cash flows from financing leases 2,876 2,077 Financing cash flows from financing leases 41,211 40,304 Right-of-use assets obtained in exchange for new operating lease liabilities 199,275 177,384 Right-of-use assets obtained in exchange for new financing lease liabilities 39,460 61,218 Other non-cash increases (decreases) in operating lease right-of-use assets (1) 12,126 (17,621) Other non-cash decreases in financing lease right-of-use assets (1) (2,754) (1,233) _______________ (1) 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, 2021 | |
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 dates of the grants using a Monte Carlo simulation with the following assumptions: Year Ended December 31 (1) , 2021 (2) 2019 Volatility of common stock 42.71% - 45.80% 25.96 % Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 0.25% - 0.28% 2.12 % _______________ (1) There were no grants during 2020. (2) 2021 grants were made during different dates therefore a range of inputs is presented. |
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, 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 Granted 2,531,959 92.16 Performance award achievement adjustments (189,930) 49.76 Vested (1,883,652) 46.34 Forfeited (292,998) 55.80 Balance at December 31, 2021 6,848,791 64.10 |
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, 2021 2020 Other assets, net $ 73,990 $ 58,410 Other current liabilities 19,788 19,432 Other liabilities 69,478 135,440 |
Schedule of Expected Benefit Payments | The following table presents estimated future benefit payments over the next ten years, as of December 31, 2021. 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): 2022 2023 2024 2025 2026 2027-2031 Estimated future benefit payments for $ 39,377 $ 39,103 $ 40,432 $ 42,190 $ 43,004 $ 231,643 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Domestic $ 1,683,710 $ 470,181 $ 839,899 Foreign 725,711 499,788 521,446 Total $ 2,409,421 $ 969,969 $ 1,361,345 |
Tax Provision (Benefit) | Our tax provision (benefit) consisted of the following (dollars in thousands): Year Ended December 31, 2021 2020 2019 Current provision: Federal $ 274,987 $ 18,951 $ (51,980) State 115,196 33,291 52,403 Foreign 238,273 88,994 163,833 Total current provision 628,456 141,236 164,256 Deferred provision: Federal 34,607 61,034 (74,432) State (4,395) 3,872 (5,760) Foreign (91,162) 7,959 (14,169) Total deferred provision (60,950) 72,865 (94,361) Total provision for income taxes $ 567,506 $ 214,101 $ 69,895 |
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, 2021 2020 2019 Federal statutory tax rate 21 % 21 % 21 % Foreign rate differential — — 4 State taxes, net of federal benefit 4 3 3 Non-deductible expenses — 1 1 Reserves for uncertain tax positions 1 — 1 Credits and exemptions (1) (2) (4) Outside basis differences recognized as a result of a legal entity restructuring — — (20) Other (1) (1) (1) Effective tax rate 24 % 22 % 5 % |
Temporary Tax Effects | Cumulative tax effects of temporary differences are shown below (dollars in thousands): December 31, 2021 2020 Assets: Tax losses and tax credits $ 307,507 $ 334,303 Operating lease liabilities 269,960 358,066 Bonus and deferred compensation 381,408 295,690 Bad debt and other reserves 65,188 73,061 Pension obligation 5,007 18,026 All other 65,710 24,623 Deferred tax assets, before valuation allowance $ 1,094,781 $ 1,103,769 Less: Valuation allowance (273,256) (291,096) Deferred tax assets $ 821,525 $ 812,673 Liabilities: Tax effect on revenue items related to Topic 606 adoption $ — $ (16,784) Property and equipment (92,166) (88,595) Unconsolidated affiliates and partnerships (128,170) (59,544) Capitalized costs and intangibles (583,219) (313,099) Operating lease assets (240,261) (366,671) All other (25,935) (936) Deferred tax liabilities $ (1,069,751) $ (845,629) Net deferred tax liabilities $ (248,226) $ (32,956) |
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, 2021 2020 Beginning balance, unrecognized tax benefits $ (168,516) $ (141,164) Gross increases - tax positions in prior period (4,478) (31,070) Gross decreases - tax positions in prior period 2,675 1,530 Gross increases - current-period tax positions (25,619) (9,688) Decreases relating to settlements 390 — Reductions as a result of lapse of statute of limitations 3,610 11,791 Foreign exchange movement — 85 Ending balance, unrecognized tax benefits $ (191,938) $ (168,516) |
Income Per Share Information (T
Income Per Share Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 1,836,574 $ 751,989 $ 1,282,357 Weighted average shares outstanding for basic income per share 335,232,840 335,196,296 335,795,654 Basic income per share attributable to CBRE Group, Inc. stockholders $ 5.48 $ 2.24 $ 3.82 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 1,836,574 $ 751,989 $ 1,282,357 Weighted average shares outstanding for basic income per share 335,232,840 335,196,296 335,795,654 Dilutive effect of contingently issuable shares 4,484,561 3,195,914 4,727,217 Weighted average shares outstanding for diluted income per share 339,717,401 338,392,210 340,522,871 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 5.41 $ 2.22 $ 3.77 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Advisory Global Real Estate Corporate, Consolidated Topic 606 Revenue: Facilities management $ — $ 14,166,987 $ — $ — $ 14,166,987 Advisory leasing 3,306,548 — — 1,623 3,308,171 Advisory sales 2,789,573 — — — 2,789,573 Property management 1,739,011 — — (21,979) 1,717,032 Project management — 2,931,930 — — 2,931,930 Valuation 733,523 — — — 733,523 Commercial mortgage origination (1) 313,704 — — — 313,704 Loan servicing (2) 43,218 — — — 43,218 Investment management — — 556,154 — 556,154 Development services — — 390,074 — 390,074 Topic 606 Revenue 8,925,577 17,098,917 946,228 (20,356) 26,950,366 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 387,664 — — — 387,664 Loan servicing 262,518 — — — 262,518 Development services (3) — — 145,488 — 145,488 Total Out of Scope of Topic 606 Revenue 650,182 — 145,488 — 795,670 Total Revenue $ 9,575,759 $ 17,098,917 $ 1,091,716 $ (20,356) $ 27,746,036 Year Ended December 31, 2020 Advisory Services (4) Global Workplace Solutions (4) Real Estate Corporate, other and eliminations (4) Consolidated Topic 606 Revenue: Facilities management $ — $ 13,484,692 $ — $ — $ 13,484,692 Advisory leasing 2,460,392 — — (2,274) 2,458,118 Advisory sales 1,663,959 — — — 1,663,959 Property management 1,658,593 — — (25,656) 1,632,937 Project management — 2,323,341 — — 2,323,341 Valuation 614,157 — — — 614,157 Commercial mortgage origination (1) 130,897 — — — 130,897 Loan servicing (2) 45,692 — — — 45,692 Investment management — — 474,939 — 474,939 Development services — — 341,387 — 341,387 Topic 606 Revenue 6,573,690 15,808,033 816,326 (27,930) 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 $ 7,214,562 $ 15,808,033 $ 831,530 $ (27,930) $ 23,826,195 Year Ended December 31, 2019 Advisory Services (4) Global Workplace Solutions (4) Real Estate Corporate, other and eliminations (4) Consolidated Topic 606 Revenue: Facilities management $ — $ 12,283,868 $ — $ — $ 12,283,868 Advisory leasing 3,375,937 — — (1,170) 3,374,767 Advisory sales 2,164,676 — — — 2,164,676 Property management 1,700,382 — — (21,817) 1,678,565 Project management — 2,317,951 — — 2,317,951 Valuation 630,943 — — — 630,943 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 8,057,108 14,601,819 638,146 (22,987) 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 $ 8,654,637 $ 14,601,819 $ 660,622 $ (22,987) $ 23,894,091 _______________________________ (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) Prior period segment results have been recast to conform to the changes as discussed in Note 19. |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summarized Financial Information by Segment | Summarized financial information by segment is as follows (dollars in thousands): Year Ended December 31, 2021 2020 2019 Revenue Advisory Services $ 9,575,759 $ 7,214,562 $ 8,654,637 Global Workplace Solutions 17,098,917 15,808,033 14,601,819 Real Estate Investments 1,091,716 831,530 660,622 Corporate, other and eliminations (20,356) (27,930) (22,987) Total revenue $ 27,746,036 $ 23,826,195 $ 23,894,091 Depreciation and Amortization Advisory Services $ 311,397 $ 311,445 $ 275,270 Global Workspace Solutions 158,757 134,383 130,427 Real Estate Investments 27,111 27,367 13,483 Corporate, other and eliminations 28,606 28,533 20,044 Total depreciation and amortization $ 525,871 $ 501,728 $ 439,224 Equity Income (Loss) from Unconsolidated Subsidiaries Advisory Services $ 24,778 $ 4,526 $ 3,110 Global Workspace Solutions 1,720 90 (927) Real Estate Investments 555,341 123,548 155,454 Corporate, other and eliminations 36,858 (2,003) 3,288 Total equity income from unconsolidated subsidiaries $ 618,697 $ 126,161 $ 160,925 Segment Operating Profit Advisory Services $ 2,063,227 $ 1,347,826 $ 1,690,959 Global Workplace Solutions 708,039 575,299 475,767 Real Estate Investments 520,001 257,700 209,666 Total reportable segment operating profit $ 3,291,267 $ 2,180,825 $ 2,376,392 |
Reconciliation of Segment Operating Profit | Reconciliation of total reportable segment operating profit to net income is as follows (dollars in thousands): Year Ended December 31, 2021 2020 2019 Net income attributable to CBRE Group, Inc. $ 1,836,574 $ 751,989 $ 1,282,357 Net income attributable to non-controlling interests 5,341 3,879 9,093 Net income 1,841,915 755,868 1,291,450 Adjustments to increase (decrease) net income: Depreciation and amortization 525,871 501,728 439,224 Asset impairments — 88,676 89,787 Interest expense, net of interest income 50,352 67,753 85,754 Write-off of financing costs on extinguished debt — 75,592 2,608 Provision for income taxes 567,506 214,101 69,895 Costs associated with transformation initiatives (1) — 155,148 — Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue 49,941 (22,912) 13,101 Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period (5,725) 11,598 9,301 Costs incurred related to legal entity restructuring — 9,362 6,899 Integration and other costs related to acquisitions 44,552 1,756 15,292 Costs associated with workforce optimization efforts (2) — 37,594 — Costs associated with our reorganization, including cost-savings initiatives (3) — — 49,565 Corporate and other loss, including eliminations 216,855 284,561 303,516 Total reportable segment operating profit $ 3,291,267 $ 2,180,825 $ 2,376,392 _______________ (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, 2021 2020 2019 Revenue United States $ 15,700,279 $ 13,472,013 $ 13,852,018 United Kingdom 3,617,504 3,083,810 2,972,704 All other countries 8,428,253 7,270,372 7,069,369 Total revenue $ 27,746,036 $ 23,826,195 $ 23,894,091 |
Transformation Initiatives (Tab
Transformation Initiatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 |
Nature of Operations - (Details
Nature of Operations - (Details) | Dec. 31, 2021employeecountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of employees | employee | 105,000 |
Number of countries in which entity operates | country | 100 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) | Dec. 10, 2021 | Dec. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 18, 2021 | Sep. 26, 2014 |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents, not available for general corporate use | $ 125,200,000 | $ 102,900,000 | |||||
Restricted cash | 108,830,000 | 143,059,000 | |||||
Client deposit held | $ 8,600,000,000 | 8,100,000,000 | |||||
Lease terms | 10 years | ||||||
Debt agreement term | 10 years | ||||||
Line of credit debt issuance costs | $ 9,500,000 | 13,000,000 | |||||
Write-off of financing costs on extinguished debt | 0 | 75,592,000 | $ 2,608,000 | ||||
Business promotion and advertising costs | 68,900,000 | 57,200,000 | 76,100,000 | ||||
Estimated fair value of mortgage servicing rights | 891,000,000 | 650,600,000 | |||||
Mortgage servicing rights, impairment charges | 0 | 0 | |||||
Revenue | 26,950,366,000 | 23,170,119,000 | 23,274,086,000 | ||||
Prepayment fees/late fees/ancillary income earned from loans servicing | 41,700,000 | 11,000,000 | 14,900,000 | ||||
Reserve for claims insurance programs | 153,400,000 | 140,500,000 | |||||
Reserve for claims insurance programs, current | 2,200,000 | 2,800,000 | |||||
Investments held in trust - special purpose acquisition company | $ 0 | $ 402,501,000 | |||||
Price per share (in dollars per share) | $ 10 | ||||||
Redeemed common stock (in shares) | 22,000,000 | 332,875,959 | 335,561,345 | ||||
Total consideration | $ 220,000,000 | ||||||
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] | |||||||
Revenue | $ 288,000,000 | $ 212,900,000 | $ 191,800,000 | ||||
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% | ||||||
2.500% Senior Notes | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Interest rate | 2.50% | 2.50% | |||||
2.500% Senior Notes | Senior Notes | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | |||||
Interest rate | 2.50% | ||||||
Debt issuance costs | $ 5,000,000 | ||||||
5.25% Senior Notes | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Interest rate | 5.25% | 5.25% | 5.25% | ||||
5.25% Senior Notes | Senior Notes | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Aggregate principal amount | $ 300,000,000 | ||||||
Interest rate | 5.25% | ||||||
Aggregate debt redeemed | $ 425,000,000 | $ 425,000,000 | |||||
Write-off of financing costs on extinguished debt | 2,000,000 | 2,000,000 | |||||
Premium paid | $ 73,600,000 | $ 73,600,000 | |||||
2019 Credit Agreement | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
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 | ||||||
2019 Credit Agreement | Tranche A Term Loan Facility | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Repayments of debt | $ 300,000,000 | ||||||
Enterprise software development platforms | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, plant and equipment useful life | 3 years | ||||||
Minimum | Enterprise software development platforms | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, plant and equipment useful life | 3 years | ||||||
Maximum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, plant and equipment useful life | 10 years | ||||||
Maximum | Buildings and Improvements | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, plant and equipment useful life | 39 years | ||||||
Maximum | Land Improvements | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, plant and equipment useful life | 15 years | ||||||
Maximum | Enterprise software development platforms | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, plant and equipment useful life | 7 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, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Real estate under development, current (included in other current assets) | $ 96,237 | $ 55,072 |
Real estate and other assets held for sale (included in other current assets) | 142 | 3,710 |
Real estate under development | 326,416 | 277,630 |
Real estate held for investment (included in other assets, net) | 4,447 | 3,795 |
Total real estate | $ 427,242 | $ 340,207 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Loan Servicing Rights Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Beginning balance, mortgage servicing rights | $ 556,931 | $ 483,492 |
Mortgage servicing rights recognized | 193,835 | 207,827 |
Mortgage servicing rights sold | 0 | (122) |
Amortization expense | (172,250) | (134,266) |
Ending balance, mortgage servicing rights | $ 578,516 | $ 556,931 |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Assumptions Used in Measuring Fair Value of Servicing Assets (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Discount rate | 12.62% | 11.73% | 10.12% |
Conditional prepayment rate | 9.78% | 9.80% | 10.34% |
Significant Accounting Polici_8
Significant Accounting Policies - Schedule of Prior Period Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash used in investing activities | $ (1,280,897) | $ (744,085) | $ (721,024) |
Net cash used in financing activities | $ (490,631) | (222,756) | $ (271,949) |
As Previously Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash used in investing activities | (341,585) | ||
Net cash used in financing activities | (625,256) | ||
Adjustments | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash used in investing activities | (402,500) | ||
Net cash used in financing activities | $ 402,500 |
Turner & Townsend Acquisition -
Turner & Townsend Acquisition - Narrative (Details) - USD ($) | Nov. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Revenue | $ 27,746,036,000 | $ 23,826,195,000 | $ 23,894,091,000 | |
Operating income | 1,637,467,000 | 969,759,000 | 1,259,875,000 | |
Net loss | 2,409,421,000 | 969,969,000 | 1,361,345,000 | |
Direct transaction and integration costs | 44,552,000 | 1,756,000 | $ 15,292,000 | |
Noncontrolling interest, fair value calculation, percentage of equity interest used in calculation | 100.00% | |||
Turner & Townsend | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling interest, noncontrolling owners percent | 40.00% | |||
Turner & Townsend | ||||
Business Acquisition [Line Items] | ||||
Remaining controlling interest acquired percentage | 60.00% | |||
Deferred consideration, gross | $ 591,200,000 | |||
Deferred consideration, discount | 96,900,000 | |||
Goodwill deductible amount | $ 0 | |||
Revenue | 194,000,000 | |||
Operating income | 500,000 | |||
Net loss | (500,000) | |||
Direct transaction and integration costs | 44,600,000 | |||
Increased amortization expense | 81,300,000 | 97,500,000 | ||
Increased depreciation expense | $ 5,500,000 | $ 6,600,000 | ||
Turner & Townsend | Minimum | ||||
Business Acquisition [Line Items] | ||||
Contractual payment date period | 3 years | |||
Turner & Townsend | Maximum | ||||
Business Acquisition [Line Items] | ||||
Contractual payment date period | 4 years |
Turner & Townsend Acquisition_2
Turner & Townsend Acquisition - Schedule of Business Acquisitions, by Acquisition (Details) - Turner & Townsend $ in Thousands | Nov. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 722,595 |
Deferred consideration | 494,349 |
Total consideration | $ 1,216,944 |
Turner & Townsend Acquisition_3
Turner & Townsend Acquisition - Summary of Excess Purchase Price Over Estimated Fair Value of Net Assets Acquired (Details) - USD ($) $ in Thousands | Nov. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Excess purchase price over estimated fair value of net assets acquired | $ 4,995,175 | $ 3,821,609 | $ 3,753,493 | |
Turner & Townsend | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 1,216,944 | |||
Less: Estimated fair value of net assets acquired | 152,027 | |||
Plus: Estimated fair value of non-controlling interest | 32,416 | |||
Excess purchase price over estimated fair value of net assets acquired | $ 1,097,333 |
Turner & Townsend Acquisition_4
Turner & Townsend Acquisition - Summary of Aggregate Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - Turner & Townsend $ in Thousands | Nov. 01, 2021USD ($) |
Assets Acquired: | |
Cash and cash equivalents | $ 44,007 |
Trade and other receivables | 239,269 |
Prepaid expenses | 7,969 |
Other current assets | 19,359 |
Property and equipment, net | 57,138 |
Other intangible assets, net | 1,104,968 |
Operating lease assets | 44,249 |
Other assets, net | 8,427 |
Total assets acquired | 1,525,386 |
Liabilities Assumed: | |
Accounts payable and accrued expenses | 59,986 |
Compensation and employee benefits | 34,557 |
Operating lease liabilities | 11,144 |
Contract liabilities | 44,943 |
Other current liabilities | 126,034 |
Non-current operating lease liabilities | 30,939 |
Deferred tax liability | 291,634 |
Total liabilities assumed | 599,237 |
Non-controlling Interest Acquired | 774,122 |
Estimated Fair Value of Net Assets Acquired | $ 152,027 |
Turner & Townsend Acquisition_5
Turner & Townsend Acquisition - Summary of Preliminary Estimate of Trademark Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 01, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Gross Carrying Amount | $ 392,377 | $ 124,222 | |
Turner & Townsend | Customer relationships | |||
Business Acquisition [Line Items] | |||
Finite Lived Intangible Assets, Amount Assigned at Acquisition Date | $ 753,935 | ||
Finite Lived Intangible Assets, Accumulated Amortization and Foreign Currency Translation | 21,577 | ||
Finite-Lived Intangible Assets, Net Carrying Value | $ 732,358 | ||
Turner & Townsend | Customer relationships | Minimum | |||
Business Acquisition [Line Items] | |||
Amortization Period | 5 years | ||
Turner & Townsend | Customer relationships | Maximum | |||
Business Acquisition [Line Items] | |||
Amortization Period | 11 years | ||
Turner & Townsend | Backlog | |||
Business Acquisition [Line Items] | |||
Finite Lived Intangible Assets, Amount Assigned at Acquisition Date | 75,407 | ||
Finite Lived Intangible Assets, Accumulated Amortization and Foreign Currency Translation | $ 5,255 | ||
Finite-Lived Intangible Assets, Net Carrying Value | $ 70,152 | ||
Turner & Townsend | Backlog | Minimum | |||
Business Acquisition [Line Items] | |||
Amortization Period | 2 years | ||
Turner & Townsend | Backlog | Maximum | |||
Business Acquisition [Line Items] | |||
Amortization Period | 4 years | ||
Turner & Townsend | Trademark | |||
Business Acquisition [Line Items] | |||
Indefinite Lived Intangible Assets, Amount Assigned at Acquisition Date | $ 275,626 | ||
Indefinite Lived Intangible Assets, Accumulated Amortization and Foreign Currency Translation | $ 3,202 | ||
Gross Carrying Amount | $ 272,424 |
Turner & Townsend Acquisition_6
Turner & Townsend Acquisition - Summary of Pro Forma Results Prepared for Comparative Purposes (Details) - Turner & Townsend - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Revenue | $ 28,545,833 | $ 24,715,787 |
Operating income | 1,705,982 | 944,102 |
Net income attributable to CBRE Group, Inc. | $ 1,873,426 | $ 705,375 |
Basic income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 5.59 | $ 2.10 |
Weighted average shares outstanding for basic income per share (in shares) | 335,232,840 | 335,196,296 |
Diluted income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 5.51 | $ 2.08 |
Weighted average shares outstanding for diluted income per share (in shares) | 339,717,401 | 338,392,210 |
Warehouse Receivables & Wareh_3
Warehouse Receivables & Warehouse Lines of Credit - Schedule of Warehouse Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |||
Beginning balance | $ 1,411,170 | ||
Origination of mortgage loans | 17,015,839 | $ 21,268,114 | $ 19,389,979 |
Gains (premiums on loan sales) | 79,925 | ||
Proceeds from sale of mortgage loans: | |||
Sale of mortgage loans | (17,114,681) | ||
Cash collections of premiums on loan sales | (79,925) | ||
Proceeds from sale of mortgage loans | (17,194,606) | (20,937,521) | $ (19,805,060) |
Net decrease in mortgage servicing rights included in warehouse receivables | (8,611) | ||
Ending balance | $ 1,303,717 | $ 1,411,170 |
Warehouse Receivables & Wareh_4
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Details) | 12 Months Ended | ||||||||||
Dec. 31, 2021USD ($) | Oct. 18, 2021USD ($) | Jun. 30, 2021USD ($) | Jan. 18, 2021USD ($) | Jan. 15, 2021USD ($) | Dec. 31, 2020USD ($) | Oct. 19, 2020USD ($) | Sep. 22, 2020USD ($) | Aug. 04, 2020USD ($) | Jul. 01, 2020USD ($) | Jun. 28, 2019USD ($)borrowing | |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||
Carrying Value | $ 1,277,451,000 | $ 1,383,964,000 | |||||||||
Warehouse Agreement Borrowings | |||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||
Maximum Facility Size | 3,600,000,000 | 3,500,000,000 | |||||||||
Carrying Value | $ 1,277,451,000 | 1,383,964,000 | |||||||||
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] | |||||||||||
Line of credit over LIBOR rate | 1.60% | ||||||||||
Maximum Facility Size | $ 1,335,000,000 | $ 1,335,000,000 | $ 985,000,000 | 1,585,000,000 | $ 1,585,000,000 | ||||||
Carrying Value | $ 742,124,000 | 561,726,000 | |||||||||
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] | |||||||||||
Line of credit over LIBOR rate | 2.75% | ||||||||||
Maximum Facility Size | $ 15,000,000 | 15,000,000 | |||||||||
Carrying Value | $ 4,326,000 | 0 | |||||||||
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% | ||||||||||
Maximum Facility Size | $ 650,000,000 | $ 650,000,000 | 450,000,000 | ||||||||
Carrying Value | $ 133,084,000 | 132,692,000 | |||||||||
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] | |||||||||||
Line of credit over LIBOR rate | 1.30% | ||||||||||
Maximum Facility Size | $ 800,000,000 | 800,000,000 | $ 400,000,000 | ||||||||
Carrying Value | 217,672,000 | 401,849,000 | |||||||||
Line of credit utilized | $ 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] | |||||||||||
Line of credit over LIBOR rate | 1.30% | ||||||||||
Line of credit, LIBOR floor rate | 0.30% | ||||||||||
Maximum Facility Size | $ 350,000,000 | 350,000,000 | |||||||||
Carrying Value | $ 178,600,000 | 175,862,000 | |||||||||
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 | Sublimit Borrowing Agreement | |||||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||||
Line of credit over LIBOR rate | 1.75% | ||||||||||
Line of credit, LIBOR floor rate | 0.75% | ||||||||||
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] | |||||||||||
Line of credit over LIBOR rate | 1.30% | ||||||||||
Line of credit, LIBOR floor rate | 0.30% | ||||||||||
Maximum Facility Size | $ 250,000,000 | $ 250,000,000 | 0 | ||||||||
Carrying Value | $ 0 | 0 | |||||||||
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] | |||||||||||
Line of credit over LIBOR rate | 1.30% | ||||||||||
Maximum Facility Size | $ 200,000,000 | 300,000,000 | |||||||||
Carrying Value | $ 1,645,000 | $ 111,835,000 | |||||||||
Line of credit utilized | $ 100,000,000 | ||||||||||
Additional line of credit | $ 100,000,000 | $ 150,000,000 | |||||||||
Maximum number of additional borrowings within 12 consecutive months | borrowing | 3 |
Warehouse Receivables & Wareh_5
Warehouse Receivables & Warehouse Lines of Credit - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Warehouse Agreement Borrowings | |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |
Lines of credit principal outstanding | $ 2,500,000,000 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Maximum Exposure to Loss (Details) - Non-Consolidated Variable Interest Entities - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 109,530 | $ 66,947 |
Other current assets | 4,219 | 4,219 |
Co-investment commitments | 90,328 | 47,957 |
Maximum exposure to loss | $ 204,077 | $ 119,123 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | Jan. 01, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | 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 | $ 152,700,000 | $ 66,300,000 | ||||||
Asset impairments | 0 | 88,676,000 | $ 89,787,000 | |||||
Goodwill | $ 0 | $ 25,000,000 | 0 | 25,000,000 | ||||
Notes payable on real estate | $ 48,200,000 | 79,600,000 | ||||||
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% | |||||||
Senior notes | $ 595,500,000 | $ 594,500,000 | ||||||
2.500% Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Interest rate | 2.50% | 2.50% | ||||||
2.500% Senior Notes | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Interest rate | 2.50% | |||||||
5.25% Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Interest rate | 5.25% | 5.25% | 5.25% | |||||
5.25% Senior Notes | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Interest rate | 5.25% | |||||||
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 | $ 451,800,000 | 772,200,000 | ||||||
Estimated Fair Value | 4.875% Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Senior notes | 671,700,000 | 702,500,000 | ||||||
Estimated Fair Value | 2.500% Senior Notes | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Senior notes | 502,100,000 | |||||||
Actual Carrying Value | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Senior term loans | 454,500,000 | 785,700,000 | ||||||
Actual Carrying Value | 4.875% Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Senior notes | 595,500,000 | 594,500,000 | ||||||
Actual Carrying Value | 2.500% Senior Notes | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Senior notes | 488,100,000 | |||||||
Global Workplace Solutions | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Asset impairments | 50,200,000 | |||||||
Goodwill | 0 | 0 | ||||||
Real Estate Investments | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Goodwill | $ 0 | 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, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 813,031 | $ 116,314 |
Warehouse receivables | 1,303,717 | 1,411,170 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 71,328 | 73,900 |
Equity securities | 69,880 | 43,334 |
Investments in unconsolidated subsidiaries | 660,331 | 50,000 |
Warehouse receivables | 1,303,717 | 1,411,170 |
Total | 2,105,256 | 1,578,404 |
Other liabilities | 10,700 | |
Total liabilities at fair value | 10,700 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 7,002 | 7,270 |
Equity securities | 69,880 | 43,334 |
Investments in unconsolidated subsidiaries | 229,900 | 0 |
Warehouse receivables | 0 | 0 |
Total | 306,782 | 50,604 |
Other liabilities | 0 | |
Total liabilities at fair value | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 64,326 | 66,630 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 23,741 | 0 |
Warehouse receivables | 1,303,717 | 1,411,170 |
Total | 1,391,784 | 1,477,800 |
Other liabilities | 0 | |
Total liabilities at fair value | 0 | |
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 | 406,690 | 50,000 |
Warehouse receivables | 0 | 0 |
Total | 406,690 | 50,000 |
Other liabilities | 10,700 | |
Total liabilities at fair value | 10,700 | |
Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 7,002 | 7,270 |
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 | 7,002 | 7,270 |
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 | 9,276 | 10,216 |
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 | 9,276 | 10,216 |
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 | 50,897 | 51,244 |
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 | 50,897 | 51,244 |
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 | 3,428 | 3,801 |
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 | 3,428 | 3,801 |
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 | 725 | 1,369 |
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 | 725 | 1,369 |
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 - Sched
Fair Value Measurements - Schedule of Reconciliation for Assets and Liabilities Measured at Fair Value (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Investment in Unconsolidated Subsidiaries | |
Beginning balance | $ 50,000 |
Transfer in | 5,174 |
Net change in fair value | 36,432 |
Purchases/ Additions | 315,084 |
Ending balance | 406,690 |
Other liabilities | |
Beginning balance | 0 |
Transfer in | 0 |
Net change in fair value | 10,700 |
Purchases/ Additions | 0 |
Ending balance | $ 10,700 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) | Dec. 31, 2021 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other liabilities, measurement input | 0.255 |
Discount rate | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.26 |
Discount rate | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.14 |
Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.70 |
Risk free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.014 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Non-Recurring Fair Value Measurement (Details) - USD ($) | Jan. 01, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Net Asset (Liability) [Abstract] | |||||
Property and equipment | $ 816,092,000 | $ 815,009,000 | |||
Goodwill | 4,995,175,000 | 3,821,609,000 | $ 3,753,493,000 | ||
Other intangible assets | 2,409,427,000 | 1,367,913,000 | |||
Total | 22,073,491,000 | 18,039,143,000 | |||
Asset Impairment Charges [Abstract] | |||||
Goodwill | $ 0 | $ 25,000,000 | 0 | 25,000,000 | |
Total | 0 | 88,676,000 | $ 89,787,000 | ||
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 | 0 | ||||
Non-recurring | Level 2 | |||||
Assets, Fair Value Disclosure [Abstract] | |||||
Property and equipment | 12,870,000 | ||||
Goodwill | 0 | ||||
Other intangible assets | 0 | 0 | |||
Total | 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 | $ 455,867,000 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,104,601 | $ 1,889,896 |
Accumulated depreciation and amortization | 1,288,509 | 1,074,887 |
Property and equipment, net | $ 816,092 | 815,009 |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years | |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,101,248 | 974,490 |
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 | $ 622,771 | 554,252 |
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 | $ 260,551 | 243,880 |
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 | $ 120,031 | $ 117,274 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 525,871 | $ 501,728 | $ 439,224 |
Property and equipment | 0 | 29,200 | |
Property and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 244,900 | $ 268,300 | $ 207,800 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) | Jan. 01, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)acquisition | Dec. 31, 2020USD ($)acquisition | Dec. 31, 2019USD ($) | Nov. 01, 2021USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||||||
Reallocation | $ 0 | |||||
Goodwill impairment | $ 0 | $ 25,000,000 | $ 0 | $ 25,000,000 | ||
Number of in-fill acquisitions completed | acquisition | 8 | 6 | ||||
Other intangible assets | $ 2,409,427,000 | $ 1,367,913,000 | ||||
Other intangible assets, accumulated amortization | 1,725,280,000 | 1,556,537,000 | ||||
Intangible assets | 3,742,330,000 | 2,800,228,000 | ||||
Amortization expense | 276,500,000 | 227,100,000 | $ 225,700,000 | |||
Estimated annual amortization expense, year one | 309,800,000 | |||||
Estimated annual amortization expense, year two | 284,600,000 | |||||
Estimated annual amortization expense, year three | 248,500,000 | |||||
Estimated annual amortization expense, year four | 201,300,000 | |||||
Estimated annual amortization expense, year five | 161,400,000 | |||||
Global Workplace Solutions | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Reallocation | 101,400,000 | 101,390,000 | ||||
Goodwill impairment | 0 | 0 | ||||
Advisory Services | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Reallocation | $ (101,400,000) | |||||
Real Estate Investments | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Reallocation | 0 | |||||
Goodwill impairment | 0 | 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 | 667,668,000 | 603,866,000 | ||||
Intangible assets | 1,612,308,000 | 880,104,000 | ||||
Mortgage servicing rights | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, accumulated amortization | $ 426,841,000 | 370,634,000 | ||||
Intangible assets, amortization period | 10 years | |||||
Intangible assets | $ 1,005,357,000 | 927,525,000 | ||||
Management contracts | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, accumulated amortization | $ 137,906,000 | 145,612,000 | ||||
Intangible assets, amortization period | 13 years | |||||
Intangible assets | $ 151,912,000 | 152,312,000 | ||||
Amortizable trade name and customer relationships | Global Workplace Solutions | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 28,500,000 | |||||
Trademarks/Trade names | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, accumulated amortization | 126,468,000 | 111,595,000 | ||||
Intangible assets | $ 350,548,000 | $ 354,060,000 | ||||
Global Workplace Solutions | Trademark | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, amortization period | 20 years | |||||
Intangible assets | $ 280,000,000 | |||||
Turner & Townsend | Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, accumulated amortization | $ 753,900,000 | |||||
Other intangible assets, net | $ 753,935,000 | |||||
Intangible assets, amortization period | 20 years | |||||
Telford Homes | Trademarks/Trade names | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Other intangible assets, net | $ 26,700,000 | |||||
Intangible assets, amortization period | 20 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Changes in Goodwill by Segment (Details) - USD ($) | Jan. 01, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Roll Forward] | |||||
goodwill, gross, beginning balance | $ 4,915,115,000 | $ 4,821,999,000 | $ 4,915,115,000 | $ 4,821,999,000 | |
Accumulated impairment losses | (1,093,506,000) | (1,093,506,000) | $ (1,068,506,000) | ||
Goodwill, beginning balance | 3,821,609,000 | 3,753,493,000 | 3,821,609,000 | 3,753,493,000 | |
Reallocation | 0 | ||||
Purchase accounting entries related to acquisitions | 1,245,294,000 | 18,181,000 | |||
Goodwill impairment | 0 | (25,000,000) | 0 | (25,000,000) | |
Foreign exchange movement | (71,728,000) | 74,935,000 | |||
Goodwill, gross, ending balance | 6,088,681,000 | 4,915,115,000 | |||
Goodwill, ending balance | 4,995,175,000 | 3,821,609,000 | |||
Advisory Services | |||||
Goodwill [Roll Forward] | |||||
goodwill, gross, beginning balance | 3,348,788,000 | 3,302,218,000 | 3,348,788,000 | 3,302,218,000 | |
Accumulated impairment losses | (761,448,000) | (761,448,000) | (761,448,000) | ||
Goodwill, beginning balance | 2,587,340,000 | 2,540,770,000 | 2,587,340,000 | 2,540,770,000 | |
Reallocation | (101,390,000) | ||||
Purchase accounting entries related to acquisitions | 77,616,000 | 16,463,000 | |||
Goodwill impairment | 0 | 0 | |||
Foreign exchange movement | (26,520,000) | 30,107,000 | |||
Goodwill, gross, ending balance | 3,298,494,000 | 3,348,788,000 | |||
Goodwill, ending balance | 2,537,046,000 | 2,587,340,000 | |||
Global Workplace Solutions | |||||
Goodwill [Roll Forward] | |||||
goodwill, gross, beginning balance | 937,797,000 | 899,506,000 | 937,797,000 | 899,506,000 | |
Accumulated impairment losses | (175,473,000) | (175,473,000) | (175,473,000) | ||
Goodwill, beginning balance | 762,324,000 | 724,033,000 | 762,324,000 | 724,033,000 | |
Reallocation | 101,400,000 | 101,390,000 | |||
Purchase accounting entries related to acquisitions | 1,167,678,000 | 9,702,000 | |||
Goodwill impairment | 0 | 0 | |||
Foreign exchange movement | (32,836,000) | 28,589,000 | |||
Goodwill, gross, ending balance | 2,174,029,000 | 937,797,000 | |||
Goodwill, ending balance | 1,998,556,000 | 762,324,000 | |||
Real Estate Investments | |||||
Goodwill [Roll Forward] | |||||
goodwill, gross, beginning balance | 628,530,000 | 620,275,000 | 628,530,000 | 620,275,000 | |
Accumulated impairment losses | (156,585,000) | (156,585,000) | $ (131,585,000) | ||
Goodwill, beginning balance | $ 471,945,000 | $ 488,690,000 | 471,945,000 | 488,690,000 | |
Reallocation | 0 | ||||
Purchase accounting entries related to acquisitions | 0 | (7,984,000) | |||
Goodwill impairment | 0 | (25,000,000) | |||
Foreign exchange movement | (12,372,000) | 16,239,000 | |||
Goodwill, gross, ending balance | 616,158,000 | 628,530,000 | |||
Goodwill, ending balance | $ 459,573,000 | $ 471,945,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Unamortizable intangible assets: | ||
Indefinite-Lived Intangible Assets, Net Carrying Value | $ 392,377 | $ 124,222 |
Amortizable intangible assets: | ||
Gross Carrying Amount | 3,742,330 | 2,800,228 |
Accumulated Amortization | (1,725,280) | (1,556,537) |
Gross Carrying Amount, Total intangible assets | 4,134,707 | 2,924,450 |
Management contracts | ||
Unamortizable intangible assets: | ||
Indefinite-Lived Intangible Assets, Net Carrying Value | 63,153 | 67,422 |
Trademark | ||
Unamortizable intangible assets: | ||
Indefinite-Lived Intangible Assets, Net Carrying Value | 329,224 | 56,800 |
Customer relationships | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 1,612,308 | 880,104 |
Accumulated Amortization | (667,668) | (603,866) |
Mortgage servicing rights | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 1,005,357 | 927,525 |
Accumulated Amortization | (426,841) | (370,634) |
Trademarks/Trade names | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 350,548 | 354,060 |
Accumulated Amortization | (126,468) | (111,595) |
Management contracts | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 151,912 | 152,312 |
Accumulated Amortization | (137,906) | (145,612) |
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 | 548,455 | 412,477 |
Accumulated Amortization | $ (292,647) | $ (251,080) |
Investments in Unconsolidated_3
Investments in Unconsolidated Subsidiaries - Equity Method Investments (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 1,196,088 | $ 452,365 |
Real Estate Investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | 453,813 | 340,248 |
Altus Power | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | 368,368 | 0 |
Class A common stock | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 229,900 | 0 |
Common stock shares (in shares) | 22 | |
Alignment shares | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 114,727 | 0 |
Private placement warrants | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 23,741 | 0 |
Warrants, exercise price (in usd per share) | $ 11 | |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 373,907 | $ 112,117 |
Investments In Unconsolidated_4
Investments In Unconsolidated Subsidiaries - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 50.00% | ||
Gain on deconsolidation | $ 187,456 | $ 0 | $ 0 |
Industrious | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 40.00% | 40.00% | |
Altus Power | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 14.30% | ||
Gain on deconsolidation | $ 187,500 | ||
Investment management | Real Estate Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from Related Parties | $ 213,500 | $ 145,900 | $ 97,000 |
Investments in Unconsolidated_5
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Balance Sheet Information of Equity Method Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 10,082,365 | $ 8,845,631 |
Total Assets | 22,073,491 | 18,039,143 |
Current liabilities | 8,418,869 | 7,143,983 |
Total Liabilities | 12,714,374 | 10,533,483 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 7,127,598 | 6,508,718 |
Non-current assets | 30,586,991 | 24,343,229 |
Total Assets | 37,714,589 | 30,851,947 |
Current liabilities | 3,128,205 | 3,164,135 |
Non-current liabilities | 8,875,779 | 6,696,352 |
Total Liabilities | 12,003,984 | 9,860,487 |
Non-controlling interests | $ 588,067 | $ 460,904 |
Investments in Unconsolidated_6
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Statements of Operation Information of Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenue | $ 27,746,036 | $ 23,826,195 | $ 23,894,091 |
Net income | 1,841,915 | 755,868 | 1,291,450 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue | 2,680,675 | 2,036,818 | 1,545,424 |
Operating income | 1,371,014 | 587,689 | 549,111 |
Net income | $ 3,260,051 | $ 483,224 | $ 419,966 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 13, 2015 |
Long-Term Debt | ||||
Total long-term debt | $ 1,545,859 | $ 1,387,743 | ||
Less: current maturities of long-term debt | 0 | 1,514 | ||
Less: unamortized debt issuance costs | 7,736 | 6,027 | ||
Long-term debt, net of current maturities | 1,538,123 | 1,380,202 | ||
Short-Term Borrowings | ||||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,277,451 | 1,383,964 | ||
Other | 32,668 | 5,330 | ||
Total short-term borrowings | 1,310,119 | 1,389,294 | ||
Warehouse Agreement Borrowings | ||||
Short-Term Borrowings | ||||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | $ 1,277,451 | $ 1,383,964 | ||
4.875% Senior Notes | ||||
Short-Term Borrowings | ||||
Interest rate | 4.875% | |||
2.500% Senior Notes | ||||
Short-Term Borrowings | ||||
Interest rate | 2.50% | 2.50% | ||
Minimum | Warehouse Agreement Borrowings | ||||
Short-Term Borrowings | ||||
Interest rate | 1.40% | |||
Maximum | Warehouse Agreement Borrowings | ||||
Short-Term Borrowings | ||||
Interest rate | 2.89% | |||
Senior Secured Term Loans | ||||
Long-Term Debt | ||||
Total long-term debt | $ 455,166 | $ 788,759 | ||
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 | $ 597,911 | 597,470 | ||
Short-Term Borrowings | ||||
Interest rate | 4.875% | |||
Senior Notes | 2.500% Senior Notes | ||||
Long-Term Debt | ||||
Total long-term debt | $ 492,782 | 0 | ||
Short-Term Borrowings | ||||
Interest rate | 2.50% | |||
Other | ||||
Long-Term Debt | ||||
Total long-term debt | $ 0 | $ 1,514 |
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, 2021USD ($) |
Debt Disclosure [Abstract] | |
Future annual aggregate maturities, 2022 | $ 1,310,119 |
Future annual aggregate maturities, 2023 | 455,166 |
Future annual aggregate maturities, 2024 | 0 |
Future annual aggregate maturities, 2025 | 0 |
Future annual aggregate maturities, 2026 | 600,000 |
Future annual aggregate maturities, thereafter | $ 500,000 |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings - Long-Term Debt Narrative (Details) | Mar. 18, 2021USD ($) | Dec. 28, 2020USD ($) | Oct. 31, 2017USD ($) | Aug. 13, 2015USD ($) | Dec. 12, 2014USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021EUR (€) | Nov. 23, 2021EUR (€) | Jul. 09, 2021USD ($) | Sep. 26, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from revolving credit facility | $ 26,599,000 | $ 835,671,000 | $ 3,609,000,000 | |||||||||
Write-off of financing costs on extinguished debt | 0 | 75,592,000 | 2,608,000 | |||||||||
Proceeds from issuance of 2.500% senior notes | $ 492,255,000 | 0 | 0 | |||||||||
2019 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Write-off of financing costs on extinguished debt | $ 2,600,000 | |||||||||||
2021 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 2.00% | |||||||||||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 4.25% | |||||||||||
Maximum leverage ratio during first four quarter that qualified acquisition is consummated | 4.75% | |||||||||||
Coverage ratio of EBITDA to total interest expense expressed in percentage | 54.94% | 54.94% | ||||||||||
Leverage ratio of total debt less available cash to EBITDA expressed in percentage | (0.04%) | (0.04%) | ||||||||||
4.875% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 4.875% | 4.875% | ||||||||||
4.875% Senior Notes | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 600,000,000 | |||||||||||
Interest rate | 4.875% | |||||||||||
Redemption price percentage | 99.24% | |||||||||||
Percentage of notes available for redemption | 100.00% | |||||||||||
Redemption price percentage, following change in control | 101.00% | |||||||||||
Senior notes | $ 595,500,000 | $ 594,500,000 | ||||||||||
2.500% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 2.50% | 2.50% | ||||||||||
2.500% Senior Notes | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | ||||||||||
Interest rate | 2.50% | 2.50% | ||||||||||
Adjustment to treasury rate | 0.20% | |||||||||||
Percentage of face value | 98.451% | |||||||||||
Debt issuance cost | $ 488,100,000 | |||||||||||
2.500% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Redemption price percentage | 100.00% | |||||||||||
5.25% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.25% | 5.25% | 5.25% | 5.25% | ||||||||
Proceeds from issuance of 2.500% senior notes | $ 125,000,000 | |||||||||||
5.25% Senior Notes | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 300,000,000 | |||||||||||
Redemption charges | $ 75,600,000 | |||||||||||
Write-off of financing costs on extinguished debt | 2,000,000 | $ 2,000,000 | ||||||||||
Interest rate | 5.25% | |||||||||||
Price equal to percentage on face value | 101.50% | |||||||||||
Premium paid | $ 73,600,000 | $ 73,600,000 | ||||||||||
Tranche A Term Loan Facility | 2019 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from revolving credit facility | $ 300,000,000 | |||||||||||
Tranche A Term Loan Facility | 2021 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum leverage ratio | 2.50% | |||||||||||
Tranche A Term Loan Facility | 2021 Credit Agreement | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit Agreement applicable fixed rate spread | 0.75% | |||||||||||
Credit Agreement applicable daily rate spread | 0.00% | |||||||||||
Tranche A Term Loan Facility | 2021 Credit Agreement | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit Agreement applicable fixed rate spread | 1.25% | |||||||||||
Credit Agreement applicable daily rate spread | 0.25% | |||||||||||
Tranche A Term Loan Facility | 2021 Credit Agreement | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | € | € 300,000,000 | |||||||||||
Revolving credit facility | 2019 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 350,000,000 | |||||||||||
Revolving credit facility | 2021 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amounts available to borrow under credit agreement | $ 3,150,000,000 | |||||||||||
Revolving credit facility | 2021 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 | 2021 Credit Agreement | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit Agreement applicable fixed rate spread | 1.075% | |||||||||||
Credit Agreement applicable daily rate spread | 0.075% | |||||||||||
Euro Term Loan Facility | 2021 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | € | € 400,000,000 | |||||||||||
Borrowings outstanding | $ 454,500,000 | |||||||||||
Euro Term Loan Facility | 2021 Credit Agreement | Senior Notes | 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, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Short-term borrowings | $ 1,310,119 | $ 1,389,294 |
Short-term debt, weighted average interest rate | 1.60% | 1.70% |
Long-Term Debt and Short-Term_7
Long-Term Debt and Short-Term Borrowings - Revolving Credit Facility Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Jan. 01, 2022 | Dec. 31, 2021GBP (£) | |
Debt Instrument [Line Items] | |||
Letters of credit outstanding amount | $ 159,100,000 | ||
Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit Spread Adjustment Rate | 0.0326% | ||
Revolving credit facility | Turner & Townsend | |||
Debt Instrument [Line Items] | |||
Amounts available to borrow under credit agreement | £ | £ 80,000,000 | ||
Line of credit utilized | $ 27,000,000 | ||
Revolving credit facility | Turner & Townsend | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Line of credit over LIBOR rate | 0.75% | ||
Revolving credit facility | Minimum | Turner & Townsend | SONIA Overnight Rate | |||
Debt Instrument [Line Items] | |||
Line of credit over LIBOR rate | 1.0266% | ||
Revolving credit facility | Maximum | Turner & Townsend | SONIA Overnight Rate | |||
Debt Instrument [Line Items] | |||
Line of credit over LIBOR rate | 2.0266% | ||
Revolving credit facility | 2021 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Amounts available to borrow under credit agreement | $ 3,150,000,000 | ||
Line of credit utilized | 0 | ||
Letters of credit outstanding amount | $ 2,000,000 | ||
Revolving credit facility | 2021 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 | 2021 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 | 2021 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 | 2021 Credit Agreement | U.K. subsidiaries | |||
Debt Instrument [Line Items] | |||
Amounts available to borrow under credit agreement | $ 320,000,000 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Operating | $ 1,046,377 | $ 1,020,352 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Financing | $ 110,809 | $ 117,805 |
Total leased assets | 1,157,186 | 1,138,157 |
Current: | ||
Operating | $ 232,423 | $ 208,526 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Financing | $ 38,103 | $ 39,298 |
Non-current: | ||
Operating | $ 1,116,562 | $ 1,116,795 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Financing | $ 73,257 | $ 78,881 |
Total lease liabilities | $ 1,460,345 | $ 1,443,500 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease Cost [Line Items] | ||
Amortization of right-to-use assets | $ 36,376 | $ 38,568 |
Variable lease cost | 70,091 | 74,332 |
Total lease cost | 302,182 | 316,519 |
Operating, administrative and other | ||
Lease Cost [Line Items] | ||
Operating lease cost | 196,685 | 204,415 |
Interest expense | ||
Lease Cost [Line Items] | ||
Interest on lease liabilities | 1,301 | 1,847 |
Revenue | ||
Lease Cost [Line Items] | ||
Sublease income | (2,271) | (2,643) |
Cost of revenue | ||
Lease Cost [Line Items] | ||
Amortization of right-to-use assets | 31,900 | 32,700 |
Variable lease cost | 16,800 | 17,100 |
Depreciation and amortization | ||
Lease Cost [Line Items] | ||
Amortization of right-to-use assets | 4,400 | 5,900 |
Operating administration and other costs | ||
Lease Cost [Line Items] | ||
Variable lease cost | $ 53,300 | $ 55,600 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted-average remaining lease term: | ||
Operating leases | 8 years | 8 years |
Finance leases | 72 years | 71 years |
Weighted-average discount rate: | ||
Operating leases | 2.90% | 3.10% |
Finance leases | 5.00% | 5.00% |
Leases excluding assets under construction | ||
Weighted-average remaining lease term: | ||
Finance leases | 3 years | 3 years |
Weighted-average discount rate: | ||
Finance leases | 1.80% | 2.10% |
Real estate under development | ||
Weighted-average discount rate: | ||
Finance lease term | 99 years | 99 years |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 233,249 |
2023 | 227,269 |
2024 | 202,485 |
2025 | 185,185 |
2026 | 153,623 |
Thereafter | 513,462 |
Total remaining lease payments at December 31, 2021 | 1,515,273 |
Less: Interest | 166,288 |
Present value of lease liabilities at December 31, 2021 | 1,348,985 |
Financing Leases | |
2022 | 38,058 |
2023 | 31,013 |
2024 | 19,774 |
2025 | 8,027 |
2026 | 2,335 |
Thereafter | 222,142 |
Total remaining lease payments at December 31, 2021 | 321,349 |
Less: Interest | 209,989 |
Present value of lease liabilities at December 31, 2021 | $ 111,360 |
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, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 202,690 | $ 170,317 |
Operating cash flows from financing leases | 2,876 | 2,077 |
Financing cash flows from finance leases | 41,211 | 40,304 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 199,275 | 177,384 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 39,460 | 61,218 |
Other non-cash increases in operating lease right-of-use assets | 12,126 | (17,621) |
Other non-cash decreases in finance lease right-of-use assets | $ (2,754) | $ (1,233) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | $ 35,200 | |
Letters of credit outstanding | 159.1 | |
Accrued loan loss | 64 | $ 57.1 |
Assets available for recourse | 1,100 | |
Guarantees total | $ 50.9 | |
Co-investments typically range | 2.00% | |
Commitments to investment in future real estate investment | $ 127.1 | |
Commitments to investment in unconsolidated real estate subsidiary | 40.7 | |
Commitment to investment in consolidated projects | 141.6 | |
COVID-19 Pandemic | ||
Loss Contingencies [Line Items] | ||
Advances for principal and interest | 9.3 | |
Warehouse Receivable | ||
Loss Contingencies [Line Items] | ||
Warehouse receivables | 611.3 | |
Funded loans subject to loss sharing arrangements | ||
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | 31,200 | |
Letters of credit outstanding | 100 | 95 |
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 | $ 105 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Incentive Plans Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2021 | May 17, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | 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 | 748,003 | ||||||
Shares withheld for payment of taxes | 564,503 | ||||||
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 | 11,023,007 | 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 | 969,299 | 1,150,761 | 1,493,788 | ||||
Percentage of target restricted stock unit | 33.30% | 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% | 33.30% | |||||
Measurement period | 5 years | 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% | 33.30% | |||||
Measurement period | 5 years | 6 years | |||||
RSUs | Maximum | Performance Based Vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future grant | 734,352 | 910,346 | 888,726 | ||||
RSUs | 2012 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future grant | 30,148 | ||||||
RSUs | 2017 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for future issuance | 3,591,138 | ||||||
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 | 0 | 20,942 | 939,605 | ||||
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 | 146,080 | 0 | 73,297 | 3,288,618 | |||
RSUs | 2019 Equity Incentive Plan | Time Based Vesting | Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future grant | 370,670 | ||||||
RSUs | 2019 Equity Incentive Plan | Maximum | Performance Based Vesting | Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future grant | 1,297,345 | ||||||
Stock Options | 2019 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future grant | 3,590,079 | ||||||
Non-Vested Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense related to non-vested awards | $ 184.9 | $ 60.4 | $ 127.7 | ||||
Unrecognized estimated compensation cost | $ 269.4 | ||||||
Weighted average period of recognition | 3 years 2 months 12 days |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Fair Value of TSR Performance RSUs (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of common stock | 25.96% | |
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.12% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of common stock | 42.71% | |
Risk-free interest rate | 0.25% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of common stock | 45.80% | |
Risk-free interest rate | 0.28% |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Non-Vested Stock Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares/Units | |||
Beginning balance (in shares) | 6,683,412 | 7,709,699 | |
Ending balance (in shares) | 6,848,791 | 6,683,412 | 7,709,699 |
Weighted Average Market Value Per Share | |||
Beginning balance (in USD per share) | $ 47.99 | $ 43.89 | |
Ending balance (in USD per share) | $ 64.10 | $ 47.99 | $ 43.89 |
Non-Vested Stock Awards | |||
Shares/Units | |||
Beginning balance (in shares) | 7,182,360 | ||
Granted (in shares) | 2,531,959 | 1,605,934 | 2,000,977 |
Performance award achievement adjustments (in shares) | (189,930) | 560,563 | 166,007 |
Vested (in shares) | (1,883,652) | (2,780,377) | (1,323,351) |
Forfeited (in shares) | (292,998) | (412,407) | (316,294) |
Weighted Average Market Value Per Share | |||
Beginning balance (in USD per share) | $ 41.04 | ||
Granted (in USD per share) | $ 92.16 | $ 56.45 | 50.07 |
Performance award achievement adjustments (in USD per share) | 49.76 | 39.89 | 37.36 |
Vested (in USD per share) | 46.34 | 39.81 | 37.43 |
Forfeited (in USD per share) | $ 55.80 | $ 48.27 | $ 42.09 |
Employee Benefit Plans - Bonuse
Employee Benefit Plans - Bonuses Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Defined benefit plan | $ 871.7 | $ 557.6 | $ 554.6 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Plan Narrative (Details) - USD ($) shares in Millions | Jan. 01, 2022 | Oct. 01, 2021 | Jan. 01, 2007 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 33.00% | 20.00% | ||||
Defined contribution plan, expenses recognized | $ 72,400,000 | $ 83,500,000 | $ 59,900,000 | |||
Percent of 401(k) that can be invested in common stock | 25.00% | |||||
Number of share held as investment under 401(k) Plan | 1.1 | |||||
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 Less than $100,000 | Subsequent Event | ||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||
Percent of annual compensation match percentage | 67.00% | |||||
Percent of annual compensation to be matched | 6.00% | |||||
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, 2021USD ($)pensionPlan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of Defined Benefit Plans | pensionPlan | 2 | ||
Fair value of plan assets | $ 438,200 | $ 403,500 | |
Benefit obligation | 524,300 | 558,400 | |
Items not yet recognized as net periodic pension cost (benefit) | 119,900 | 165,900 | |
Loss on plan obligations | 22,100 | 27,700 | |
Net actuarial loss due to assumption changes | 37,100 | ||
Net gains due to plan experience | 9,500 | ||
Net periodic pension benefit | 8,900 | 0 | $ 0 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 411,100 | 378,900 | |
Benefit obligation | 437,500 | 470,100 | |
Unfunded status of plan | $ (26,400) | $ (91,200) |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plans Located within Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 438,200 | $ 403,500 |
Benefit obligation | 524,300 | 558,400 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 411,100 | 378,900 |
Benefit obligation | 437,500 | 470,100 |
Pension Plan | Other assets, net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 73,990 | 58,410 |
Pension Plan | Other current liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | 19,788 | 19,432 |
Pension Plan | Other liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | $ 69,478 | $ 135,440 |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2021 | $ 39,377 |
2022 | 39,103 |
2023 | 40,432 |
2024 | 42,190 |
2025 | 43,004 |
2027-2031 | $ 231,643 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 1,683,710 | $ 470,181 | $ 839,899 |
Foreign | 725,711 | 499,788 | 521,446 |
Income before provision for income taxes | $ 2,409,421 | $ 969,969 | $ 1,361,345 |
Income Taxes - Tax Provision (B
Income Taxes - Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current provision: | |||
Federal | $ 274,987 | $ 18,951 | $ (51,980) |
State | 115,196 | 33,291 | 52,403 |
Foreign | 238,273 | 88,994 | 163,833 |
Total current provision | 628,456 | 141,236 | 164,256 |
Deferred provision: | |||
Federal | 34,607 | 61,034 | (74,432) |
State | (4,395) | 3,872 | (5,760) |
Foreign | (91,162) | 7,959 | (14,169) |
Total deferred provision | (60,950) | 72,865 | (94,361) |
Total provision for income taxes | $ 567,506 | $ 214,101 | $ 69,895 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Pre-Tax Income (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% |
Foreign rate differential | 0.00% | 0.00% | 4.00% |
State taxes, net of federal benefit | 4.00% | 3.00% | 3.00% |
Non-deductible expenses | 0.00% | 1.00% | 1.00% |
Reserves for uncertain tax positions | 1.00% | 0.00% | 1.00% |
Credits and exemptions | (1.00%) | (2.00%) | (4.00%) |
Outside basis differences recognized as a result of a legal entity restructuring | 0.00% | 0.00% | (20.00%) |
Other | (1.00%) | (1.00%) | (1.00%) |
Effective tax rate | 24.00% | 22.00% | 5.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax [Line Items] | ||||
Net tax benefit attributable to outside basis differences recognized on legal entity restructuring | $ 277,200 | |||
Deferred tax liabilities operating lease assets | $ 240,261 | $ 366,671 | ||
Deferred tax assets before valuation allowances for state NOLs | 299,100 | |||
Deferred tax assets that do not satisfy realization criteria | 273,256 | 291,096 | ||
Increase (decrease) in valuation allowance | (17,800) | |||
Undistributed earnings | 4,400,000 | |||
Additional undistributed foreign earnings | 20,400 | |||
Unrecognized tax benefits | $ 141,164 | 191,938 | 168,516 | $ 141,164 |
Unrecognized tax benefits that would affect our effective tax rate | 108,500 | |||
Additional interest and penalties accrued | 600 | 400 | $ 300 | |
Liability for interest and penalties | 3,800 | $ 1,600 | ||
Change In Forecasted Earnings in Foreign Jurisdictions | ||||
Income Tax [Line Items] | ||||
Increase (decrease) in valuation allowance | (12,300) | |||
Foreign Currency Translation and Tax Rate Changes | ||||
Income Tax [Line Items] | ||||
Increase (decrease) in valuation allowance | (19,500) | |||
Current Year Activities | ||||
Income Tax [Line Items] | ||||
Increase (decrease) in valuation allowance | $ 14,000 |
Income Taxes - Temporary Tax Ef
Income Taxes - Temporary Tax Effects (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Tax losses and tax credits | $ 307,507 | $ 334,303 |
Operating lease liabilities | 269,960 | 358,066 |
Bonus and deferred compensation | 381,408 | 295,690 |
Bad debt and other reserves | 65,188 | 73,061 |
Pension obligation | 5,007 | 18,026 |
All other | 65,710 | 24,623 |
Deferred tax assets, before valuation allowance | 1,094,781 | 1,103,769 |
Less: Valuation allowance | (273,256) | (291,096) |
Deferred tax assets | 821,525 | 812,673 |
Liabilities [Abstract] | ||
Tax effect on revenue items related to Topic 606 adoption | 0 | (16,784) |
Property and equipment | (92,166) | (88,595) |
Unconsolidated affiliates and partnerships | (128,170) | (59,544) |
Capitalized costs and intangibles | (583,219) | (313,099) |
Operating lease assets | (240,261) | (366,671) |
All other | (25,935) | (936) |
Deferred tax liabilities | (1,069,751) | (845,629) |
Net deferred tax liabilities | $ (248,226) | $ (32,956) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance, unrecognized tax benefits | $ (168,516) | $ (141,164) |
Gross increases - tax positions in prior period | (4,478) | (31,070) |
Gross decreases - tax positions in prior period | 2,675 | 1,530 |
Gross increases - current-period tax positions | (25,619) | (9,688) |
Decreases relating to settlements | 390 | 0 |
Reductions as a result of lapse of statute of limitations | 3,610 | 11,791 |
Foreign exchange movement | 0 | 85 |
Ending balance, unrecognized tax benefits | $ (191,938) | $ (168,516) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | Dec. 10, 2021 | Nov. 19, 2021 | 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, shares authorized (in shares) | 525,000,000 | 525,000,000 | |||||||
Class A common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | |||||||
Class A common stock issued (in shares) | 332,875,959 | 335,561,345 | |||||||
Class A common stock outstanding (in shares) | 332,875,959 | 335,561,345 | 22,000,000 | ||||||
Shares repurchased during the period, value | $ 372,949,000 | $ 50,028,000 | $ 145,137,000 | ||||||
Capacity remaining under current stock repurchase program | $ 1,980,000,000 | ||||||||
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) | 332,875,959 | 335,561,345 | |||||||
Class A common stock outstanding (in shares) | 332,875,959 | 335,561,345 | |||||||
Shares repurchased during the period, value | $ 40,000 | $ 11,000 | $ 31,000 | ||||||
Repurchase of common stock (in shares) | 3,954,369 | 1,050,084 | 3,080,907 | ||||||
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 | ||||||||
Repurchase of common stock (in shares) | 1,144,449 | ||||||||
Average price per share (in USD per share) | $ 39.38 | ||||||||
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 | $ 287,300,000 | $ 50,000,000 | |||||||
Repurchase of common stock (in shares) | 3,122,054 | 1,050,084 | |||||||
Average price per share (in USD per share) | $ 92.03 | $ 47.62 | |||||||
Authorized share additional repurchase amount | $ 100,000,000 | $ 100,000,000 | |||||||
Class A common stock | November 2021 Repurchase Program | |||||||||
Equity [Line Items] | |||||||||
Authorized share repurchase amount | $ 2,000,000,000 | ||||||||
Shares repurchased during the period, value | $ 85,600,000 | ||||||||
Repurchase of common stock (in shares) | 832,315 | ||||||||
Average price per share (in USD per share) | $ 102.82 | ||||||||
Stock repurchase, term | 5 years |
Income Per Share Information -
Income Per Share Information - Calculation of Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic Income Per Share | |||
Net income attributable to CBRE Group, Inc. stockholders | $ 1,836,574 | $ 751,989 | $ 1,282,357 |
Weighted average shares outstanding for basic income per share (in shares) | 335,232,840 | 335,196,296 | 335,795,654 |
Basic income per share attributable to CBRE Group, Inc. shareholders (in USD per share) | $ 5.48 | $ 2.24 | $ 3.82 |
Diluted Income Per Share | |||
Net income attributable to CBRE Group, Inc. stockholders | $ 1,836,574 | $ 751,989 | $ 1,282,357 |
Weighted average shares outstanding for basic income per share (in shares) | 335,232,840 | 335,196,296 | 335,795,654 |
Dilutive effect of contingently issuable shares (in shares) | 4,484,561 | 3,195,914 | 4,727,217 |
Weighted average shares outstanding for diluted income per share (in shares) | 339,717,401 | 338,392,210 | 340,522,871 |
Diluted income per share attributable to CBRE Group, Inc. shareholders (in USD per share) | $ 5.41 | $ 2.22 | $ 3.77 |
Income Per Share Information _2
Income Per Share Information - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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) | 186,241 | 567,589 | 374,555 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | $ 26,950,366 | $ 23,170,119 | $ 23,274,086 |
Total Out of Scope of Topic 606 Revenue | 795,670 | 656,076 | 620,005 |
Total Revenue | 27,746,036 | 23,826,195 | 23,894,091 |
Corporate And Reconciling Items | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | (20,356) | (27,930) | (22,987) |
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 |
Total Revenue | (20,356) | (27,930) | (22,987) |
Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 8,925,577 | 6,573,690 | 8,057,108 |
Total Out of Scope of Topic 606 Revenue | 650,182 | 640,872 | 597,529 |
Total Revenue | 9,575,759 | 7,214,562 | 8,654,637 |
Global Workplace Solutions | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 17,098,917 | 15,808,033 | 14,601,819 |
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 |
Total Revenue | 17,098,917 | 15,808,033 | 14,601,819 |
Real Estate Investments | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 946,228 | 816,326 | 638,146 |
Total Out of Scope of Topic 606 Revenue | 145,488 | 15,204 | 22,476 |
Total Revenue | 1,091,716 | 831,530 | 660,622 |
Facilities management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 14,166,987 | 13,484,692 | 12,283,868 |
Facilities management | Global Workplace Solutions | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 14,166,987 | 13,484,692 | 12,283,868 |
Advisory leasing | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 3,308,171 | 2,458,118 | 3,374,767 |
Advisory leasing | Corporate And Reconciling Items | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 1,623 | (2,274) | (1,170) |
Advisory leasing | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 3,306,548 | 2,460,392 | 3,375,937 |
Advisory sales | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 2,789,573 | 1,663,959 | 2,164,676 |
Advisory sales | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 2,789,573 | 1,663,959 | 2,164,676 |
Property management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 1,717,032 | 1,632,937 | 1,678,565 |
Property management | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 1,658,593 | ||
Property management | Corporate And Reconciling Items | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | (21,979) | (25,656) | (21,817) |
Property management | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 1,739,011 | 1,700,382 | |
Project management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 2,931,930 | 2,323,341 | 2,317,951 |
Project management | Global Workplace Solutions | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 2,931,930 | 2,323,341 | 2,317,951 |
Valuation | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 733,523 | 614,157 | 630,943 |
Valuation | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 733,523 | 614,157 | 630,943 |
Commercial mortgage origination | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 313,704 | 130,897 | 154,227 |
Total Out of Scope of Topic 606 Revenue | 387,664 | 446,968 | 421,736 |
Commercial mortgage origination | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 313,704 | 130,897 | 154,227 |
Total Out of Scope of Topic 606 Revenue | 387,664 | 446,968 | 421,736 |
Loan servicing | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 43,218 | 45,692 | 30,943 |
Total Out of Scope of Topic 606 Revenue | 262,518 | 193,904 | 175,793 |
Loan servicing | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 43,218 | 45,692 | 30,943 |
Total Out of Scope of Topic 606 Revenue | 262,518 | 193,904 | 175,793 |
Investment management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 556,154 | 474,939 | 424,882 |
Investment management | Real Estate Investments | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 556,154 | 474,939 | 424,882 |
Development services | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 390,074 | 341,387 | 213,264 |
Total Out of Scope of Topic 606 Revenue | 145,488 | 15,204 | 22,476 |
Development services | Real Estate Investments | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 390,074 | 341,387 | 213,264 |
Total Out of Scope of Topic 606 Revenue | $ 145,488 | $ 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 474,400 | $ 471,800 | |
Contract assets, current | 338,749 | 318,191 | |
Increase in contract assets | 2,500 | ||
Contract liabilities | 288,900 | 164,100 | |
Contract liabilities, current | 280,659 | 162,045 | |
Recognized revenue included in contract liability | 152,000 | ||
Capitalized contract cost | 84,900 | 64,200 | $ 69,300 |
Capitalized contract cost, amortization of transaction cost | $ 40,300 | $ 46,900 | $ 32,300 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Global business segments | 3 |
Segments - Summarized Financial
Segments - Summarized Financial Information by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 27,746,036 | $ 23,826,195 | $ 23,894,091 |
Depreciation and amortization | 525,871 | 501,728 | 439,224 |
Equity income from unconsolidated subsidiaries | 618,697 | 126,161 | 160,925 |
Segment Operating Profit | 1,637,467 | 969,759 | 1,259,875 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment Operating Profit | 3,291,267 | 2,180,825 | 2,376,392 |
Corporate And Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Revenue | (20,356) | (27,930) | (22,987) |
Depreciation and amortization | 28,606 | 28,533 | 20,044 |
Equity income from unconsolidated subsidiaries | 36,858 | (2,003) | 3,288 |
Segment Operating Profit | 216,855 | 284,561 | 303,516 |
Advisory Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 9,575,759 | 7,214,562 | 8,654,637 |
Depreciation and amortization | 311,397 | 311,445 | 275,270 |
Equity income from unconsolidated subsidiaries | 24,778 | 4,526 | 3,110 |
Segment Operating Profit | 2,063,227 | 1,347,826 | 1,690,959 |
Global Workplace Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 17,098,917 | 15,808,033 | 14,601,819 |
Depreciation and amortization | 158,757 | 134,383 | 130,427 |
Equity income from unconsolidated subsidiaries | 1,720 | 90 | (927) |
Segment Operating Profit | 708,039 | 575,299 | 475,767 |
Real Estate Investments | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,091,716 | 831,530 | 660,622 |
Depreciation and amortization | 27,111 | 27,367 | 13,483 |
Equity income from unconsolidated subsidiaries | 555,341 | 123,548 | 155,454 |
Segment Operating Profit | $ 520,001 | $ 257,700 | $ 209,666 |
Segments - Reconciliation of Se
Segments - Reconciliation of Segment Operating Profit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Net income attributable to CBRE Group, Inc. stockholders | $ 1,836,574 | $ 751,989 | $ 1,282,357 |
Net income attributable to non-controlling interests | 5,341 | 3,879 | 9,093 |
Net income | 1,841,915 | 755,868 | 1,291,450 |
Depreciation and amortization | 525,871 | 501,728 | 439,224 |
Asset impairments | 0 | 88,676 | 89,787 |
Interest expense, net of interest income | 50,352 | 67,753 | 85,754 |
Write-off of financing costs on extinguished debt | 0 | 75,592 | 2,608 |
Provision for income taxes | 567,506 | 214,101 | 69,895 |
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue | 49,941 | (22,912) | 13,101 |
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period | (5,725) | 11,598 | 9,301 |
Costs incurred related to legal entity restructuring | 0 | 9,362 | 6,899 |
Integration and other costs related to acquisitions | 44,552 | 1,756 | 15,292 |
Segment Operating Profit | 1,637,467 | 969,759 | 1,259,875 |
Corporate And Reconciling Items | |||
Restructuring Cost and Reserve [Line Items] | |||
Depreciation and amortization | 28,606 | 28,533 | 20,044 |
Segment Operating Profit | 216,855 | 284,561 | 303,516 |
Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Segment Operating Profit | 3,291,267 | 2,180,825 | 2,376,392 |
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 | 0 | 155,148 | 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 | 0 | 37,594 | 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 | $ 0 | $ 49,565 |
Segments - Summary of Geographi
Segments - Summary of Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 27,746,036 | $ 23,826,195 | $ 23,894,091 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 15,700,279 | 13,472,013 | 13,852,018 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 3,617,504 | 3,083,810 | 2,972,704 |
All other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 8,428,253 | $ 7,270,372 | $ 7,069,369 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Employees Other Than Executive Officers - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Loans to related parties | $ 475.2 | $ 424.2 |
Maximum | ||
Related Party Transaction [Line Items] | ||
Related party transaction, rate | 3.07% |
Transformation Initiatives - Su
Transformation Initiatives - Summary of Transformation Initiative Costs (Details) - Transformation Initiatives - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | ||
Subtotal | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | $ 0 | 155,148 | $ 0 |
Depreciation expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 20,692 | ||
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 | Subtotal | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 113,987 | ||
Advisory Services | Depreciation expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 14,184 | ||
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 | Subtotal | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 38,179 | ||
Global Workplace Solutions | Depreciation expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 166 | ||
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 | Subtotal | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | 2,982 | ||
Real Estate Investments | Depreciation expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Total transformation initiative costs | $ 6,342 |
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 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 95,533 | $ 72,725 | $ 60,348 |
Additions: Charges to expense | 17,818 | 47,240 | 20,373 |
Deductions: Write-offs, payments and other | 15,763 | 24,432 | 7,996 |
Ending balance | $ 97,588 | $ 95,533 | $ 72,725 |