Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CBG | |
Entity Registrant Name | CBRE GROUP, INC. | |
Entity Central Index Key | 1,138,118 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 339,798,242 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 531,481 | $ 751,774 |
Restricted cash | 71,865 | 73,045 |
Receivables, less allowance for doubtful accounts of $55,753 and $46,789 at June 30, 2018 and December 31, 2017, respectively | 3,324,522 | 3,112,289 |
Warehouse receivables | 1,488,324 | 928,038 |
Prepaid expenses | 268,226 | 215,336 |
Contract assets | 109,272 | 273,053 |
Income taxes receivable | 47,752 | 49,628 |
Other current assets | 265,268 | 227,421 |
Total Current Assets | 6,106,710 | 5,630,584 |
Property and equipment, net | 705,469 | 617,739 |
Goodwill | 3,407,169 | 3,254,740 |
Other intangible assets, net of accumulated amortization of $1,106,169 and $1,000,738 at June 30, 2018 and December 31, 2017, respectively | 1,448,284 | 1,399,112 |
Investments in unconsolidated subsidiaries | 233,889 | 238,001 |
Deferred tax assets, net | 97,890 | 98,746 |
Other assets, net | 536,046 | 479,474 |
Total Assets | 12,535,457 | 11,718,396 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 1,642,030 | 1,573,672 |
Compensation and employee benefits payable | 870,626 | 904,434 |
Accrued bonus and profit sharing | 629,044 | 1,078,345 |
Contract liabilities | 76,216 | 100,615 |
Income taxes payable | 21,918 | 70,634 |
Short-term borrowings: | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,471,591 | 910,766 |
Revolving credit facility | 598,000 | |
Other | 16 | 16 |
Total short-term borrowings | 2,069,607 | 910,782 |
Current maturities of long-term debt | 1,466 | 8 |
Other current liabilities | 70,228 | 74,454 |
Total Current Liabilities | 5,381,135 | 4,712,944 |
Long-term debt, net of current maturities | 1,762,885 | 1,999,603 |
Deferred tax liabilities, net | 187,062 | 147,218 |
Non-current tax liabilities | 140,050 | 140,792 |
Other liabilities | 547,454 | 543,225 |
Total Liabilities | 8,018,586 | 7,543,782 |
Commitments and contingencies | ||
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock; $0.01 par value; 525,000,000 shares authorized; 339,793,072 and 339,459,138 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 3,398 | 3,395 |
Additional paid-in capital | 1,278,251 | 1,220,508 |
Accumulated earnings | 3,820,420 | 3,443,007 |
Accumulated other comprehensive loss | (648,492) | (552,414) |
Total CBRE Group, Inc. Stockholders’ Equity | 4,453,577 | 4,114,496 |
Non-controlling interests | 63,294 | 60,118 |
Total Equity | 4,516,871 | 4,174,614 |
Total Liabilities and Equity | $ 12,535,457 | $ 11,718,396 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 55,753 | $ 46,789 |
Other intangible assets, accumulated amortization | $ 1,106,169 | $ 1,000,738 |
Class A common stock, par value | $ 0.01 | $ 0.01 |
Class A common stock, shares authorized | 525,000,000 | 525,000,000 |
Class A common stock, shares issued | 339,793,072 | 339,459,138 |
Class A common stock, shares outstanding | 339,793,072 | 339,459,138 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 5,111,434 | $ 4,439,571 | $ 9,785,386 | $ 8,490,537 |
Costs and expenses: | ||||
Cost of services | 3,958,748 | 3,409,540 | 7,578,709 | 6,556,017 |
Operating, administrative and other | 826,282 | 712,615 | 1,558,517 | 1,319,241 |
Depreciation and amortization | 113,399 | 100,386 | 221,564 | 194,423 |
Total costs and expenses | 4,898,429 | 4,222,541 | 9,358,790 | 8,069,681 |
Gain on disposition of real estate | 12,311 | 11,298 | 12,329 | 12,683 |
Operating income | 225,316 | 228,328 | 438,925 | 433,539 |
Equity income from unconsolidated subsidiaries | 96,021 | 75,384 | 136,200 | 90,402 |
Other income (loss) | 4,009 | 3,186 | (271) | 7,301 |
Interest income | 1,489 | 1,427 | 5,110 | 3,838 |
Interest expense | 26,885 | 35,430 | 55,743 | 69,440 |
Write-off of financing costs on extinguished debt | 27,982 | |||
Income before provision for income taxes | 299,950 | 272,895 | 496,239 | 465,640 |
Provision for income taxes | 70,319 | 69,887 | 116,483 | 123,706 |
Net income | 229,631 | 203,008 | 379,756 | 341,934 |
Less: Net income attributable to non-controlling interests | 964 | 1,231 | 801 | 3,137 |
Net income attributable to CBRE Group, Inc. | $ 228,667 | $ 201,777 | $ 378,955 | $ 338,797 |
Basic income per share: | ||||
Net income per share attributable to CBRE Group, Inc. | $ 0.67 | $ 0.60 | $ 1.12 | $ 1.01 |
Weighted average shares outstanding for basic income per share | 339,081,556 | 336,975,149 | 338,986,354 | 336,941,681 |
Diluted income per share: | ||||
Net income per share attributable to CBRE Group, Inc. | $ 0.67 | $ 0.59 | $ 1.10 | $ 1 |
Weighted average shares outstanding for diluted income per share | 343,471,513 | 340,882,603 | 343,031,189 | 340,214,246 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 229,631 | $ 203,008 | $ 379,756 | $ 341,934 |
Other comprehensive (loss) income: | ||||
Foreign currency translation (loss) gain | (165,926) | 88,649 | (99,894) | 139,837 |
Adoption of Accounting Standards Update 2016-01, net of tax | (3,964) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 628 | 1,380 | 1,383 | 2,888 |
Unrealized gains (losses) on interest rate swaps, net of tax | 214 | (217) | 817 | 77 |
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (122) | 977 | (627) | 1,900 |
Other, net | (10) | 5,528 | (16) | |
Total other comprehensive (loss) income | (165,206) | 90,779 | (96,757) | 144,686 |
Comprehensive income | 64,425 | 293,787 | 282,999 | 486,620 |
Less: Comprehensive income attributable to non-controlling interests | 480 | 1,390 | 122 | 3,317 |
Comprehensive income attributable to CBRE Group, Inc. | $ 63,945 | $ 292,397 | $ 282,877 | $ 483,303 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 379,756 | $ 341,934 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 221,564 | 194,423 |
Amortization and write-off of financing costs on extinguished debt | 31,646 | 4,912 |
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets | (98,707) | (80,893) |
Gains on disposition of real estate held for investment | (3,197) | |
Net realized and unrealized losses (gains) from investments | 271 | (7,301) |
Equity income from unconsolidated subsidiaries | (136,200) | (90,402) |
Provision for doubtful accounts | 11,809 | 5,578 |
Compensation expense for equity awards | 61,675 | 48,283 |
Proceeds from sale of mortgage loans | 7,019,614 | 7,071,928 |
Origination of mortgage loans | (7,552,229) | (6,848,102) |
Increase (decrease) in warehouse lines of credit | 560,825 | (199,683) |
Distribution of earnings from unconsolidated subsidiaries | 131,395 | 85,952 |
Tenant concessions received | 16,130 | 7,436 |
Purchase of equity securities | (41,389) | (43,525) |
Proceeds from sale of equity securities | 37,715 | 34,476 |
(Increase) decrease in receivables, prepaid expenses and other assets (including contract assets) | (198,469) | 15,995 |
Decrease in real estate held for sale and under development | 701 | 9,787 |
Increase (decrease) in accounts payable and accrued expenses and other liabilities (including contract liabilities) | 9,543 | (115,288) |
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing | (496,292) | (494,205) |
Increase in net income taxes receivable/payable | (41,830) | (47,384) |
Other operating activities, net | (6,393) | (11,358) |
Net cash used in operating activities | (92,062) | (117,437) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (107,482) | (59,863) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (264,702) | (25,326) |
Contributions to unconsolidated subsidiaries | (21,042) | (32,660) |
Distributions from unconsolidated subsidiaries | 28,235 | 23,970 |
Net proceeds from disposition of real estate held for investment | 14,174 | |
Purchase of equity securities | (13,718) | (9,280) |
Proceeds from sale of equity securities | 8,889 | 9,428 |
Purchase of available for sale debt securities | (18,723) | (10,454) |
Proceeds from the sale of available for sale debt securities | 4,121 | 7,849 |
Other investing activities, net | (6,384) | 2,279 |
Net cash used in investing activities | (376,632) | (94,057) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from senior term loans | 550,000 | |
Proceeds from revolving credit facility | 2,000,000 | 911,000 |
Repayment of revolving credit facility | (1,402,000) | (911,000) |
Repayment of 5.00% senior notes (including premium) | (820,000) | |
Proceeds from notes payable on real estate held for investment | 52 | |
Repayment of notes payable on real estate held for investment | (13,028) | |
Proceeds from notes payable on real estate held for sale and under development | 1,101 | 2,137 |
Repayment of notes payable on real estate held for sale and under development | (2,991) | (9,189) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (11,183) | (15,126) |
Repayment of debt assumed in acquisition of FacilitySource | (26,295) | |
Units repurchased for payment of taxes on equity awards | (4,630) | (1,900) |
Non-controlling interest contributions | 2,744 | 1,941 |
Non-controlling interest distributions | (7,652) | (3,904) |
Other financing activities, net | (76) | (3,666) |
Net cash provided by (used in) financing activities | 266,042 | (29,707) |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (18,821) | 20,190 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (221,473) | (221,011) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 824,819 | 831,412 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 603,346 | 610,401 |
Cash paid during the period for: | ||
Interest | 59,337 | 59,490 |
Income taxes, net | $ 159,833 | $ 163,885 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) | Jun. 30, 2018 |
5.00% Senior Notes [Member] | |
Debt Instrument Interest Rate Stated Percentage | 5.00% |
Consolidated Statement of Equit
Consolidated Statement of Equity (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Total | Class A Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] |
Beginning balance at Dec. 31, 2017 | $ 4,174,614 | $ 3,395 | $ 1,220,508 | $ 3,443,007 | $ (552,414) | $ 60,118 |
Net income | 379,756 | 378,955 | 801 | |||
Adoption of Accounting Standards Update 2016-01, net of tax | (3,964) | 3,964 | (3,964) | |||
Compensation expense for equity awards | 61,675 | 61,675 | ||||
Units repurchased for payment of taxes on equity awards | (4,630) | (4,630) | ||||
Foreign currency translation loss | (99,894) | (99,215) | (679) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 1,383 | 1,383 | ||||
Unrealized gains on interest rate swaps, net of tax | 817 | 817 | ||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (627) | (627) | ||||
Contributions from non-controlling interests | 2,744 | 2,744 | ||||
Distributions to non-controlling interests | (7,652) | (7,652) | ||||
Other | 8,685 | 3 | 698 | (5,506) | 5,528 | 7,962 |
Ending balance at Jun. 30, 2018 | $ 4,516,871 | $ 3,398 | $ 1,278,251 | $ 3,820,420 | $ (648,492) | $ 63,294 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Readers of this Quarterly Report on Form 10-Q (Quarterly Report) should refer to the audited financial statements and notes to consolidated financial statements of CBRE Group, Inc., a Delaware corporation (which may be referred to in these financial statements as “the company,” “we,” “us” and “our”), for the year ended December 31, 2017, which are included in our 2017 Annual Report on Form 10-K (2017 Annual Report), filed with the United States Securities and Exchange Commission (SEC) and also available on our website (www.cbre.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Significant Accounting Policies, in the notes to consolidated financial statements in our 2017 Annual Report for further discussion of our significant accounting policies and estimates. The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or GAAP, for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events. 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, 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 these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation in connection with our adoption of new revenue recognition guidance (as further described in notes 2, 3 and 12). In addition, certain reclassifications have been made to the 2017 financial statements to conform with the 2018 presentation. Such reclassifications primarily relate to the adoption of Accounting Standards Update (ASU) 2016‑01, ASU 2016-15 and ASU 2016-18 as further described in Note 3. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2018. |
Significant Accounting Policies
Significant Accounting Policies Update | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies Update | 2. Significant Accounting Policies Update Revenue Recognition We account for revenue in accordance with Accounting Standards Codification (ASC) Topic 606, “ Revenue from Contracts with Customers Other Assets and Deferred Costs – Contracts with Customers 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 12 and 13. The Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific The Americas segment is our largest segment of operations and provides a comprehensive range of services throughout the United States (U.S.), in the largest regions of Canada and in key markets in Latin America. The primary services offered consist of the following: property leasing, property sales, mortgage services, appraisal and valuation, occupier outsourcing and property management services. Our EMEA and Asia Pacific segments generally provide services similar to the Americas business segment. The EMEA segment has operations primarily in Europe, while the Asia Pacific segment has operations in Asia, Australia and New Zealand. Property Leasing and Property Sales Through our Advisory & Transaction Services business line, we provide strategic advice and execution to 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 sales, our commission is typically paid at the closing of the sale. 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 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. 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 Under the CBRE Capital Markets brand, we offer clients fully integrated 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. We typically satisfy our performance obligation when control is transferred 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 Transfers and Servicing Appraisal and Valuation 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 as services are rendered over time. Occupier Outsourcing Services We provide a broad suite of services to occupiers of real estate, including facilities management, project management, transaction management and strategic consulting. We report facilities and project management as well as strategic consulting activities in our occupier outsourcing revenue line and transaction management in our lease and sales revenue lines. 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. Facilities management services represent a series of distinct daily services rendered over time. Project management services are often provided on a portfolio wide or programmatic basis. Revenues from project management services generally includes 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. 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 services) 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 accelerate revenue if it is deemed probable there will not be significant reversal in the future. Property Management We provide property management services on a contractual basis for owners of and investors in office, industrial and retail properties. These services include construction management, marketing, building engineering, accounting and financial services. We are compensated for our services through a monthly management fee earned based on either a specified percentage of the monthly rental income, rental receipts generated from the property under management or a fixed fee. We are also often reimbursed for our administrative and payroll costs directly attributable to the properties under management. Property management services represent a series of distinct daily services rendered over time. 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 report revenues net of third-party reimbursements. Global Investment Management Our Global Investment Management business segment provides investment management services to pension funds, insurance companies, sovereign wealth funds, foundations, endowments and other institutional investors seeking to generate returns and diversification through investment in real estate. 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. 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 business segment consists of real estate development and investment activities primarily in the United States 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. 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. 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. Remaining Performance Obligations Remaining performance obligations represent the aggregate transaction prices for contracts where our performance obligations have not yet been satisfied. As of June 30, 2018, 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 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. Such deferred revenue typically results from milestone payments pertaining to future services not yet rendered. 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 Occupier Outsourcing business line. 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 services 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. Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (Tax Act) was signed into law making significant changes to the Internal Revenue Code, including, but not limited to: (i) a U.S. corporate tax rate decrease from 35% to 21%, effective for tax years beginning after December 31, 2017; (ii) the transition of U.S. international taxation from a worldwide tax system to a territorial system; and (iii) a one-time transition tax (i.e. toll charge) on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), “ Income Tax Accounting Implications of the Tax Cuts and Jobs Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 Our provision for income taxes for 2017 included a provisional amount related to our estimate of the U.S. federal and state tax impact of the transition tax and other components of the Tax Act. In the first quarter of 2018, we obtained additional information affecting the provisional amount initially recorded for the transition tax. As a result, we recorded an immaterial adjustment to the transition tax in the tax provision for the six months ended June 30, 2018. Provisional amounts that have been recorded are based upon our best estimate of the impact of the Tax Act in accordance with our understanding of the Tax Act and the related guidance available. Additional work is necessary on the provisional amount related to the transition tax, which includes performing a more detailed analysis of historic foreign earnings and tax pools and potential corresponding adjustments. See Note 2 of the Notes to Consolidated Financial Statements set forth in Item 8 included in our Annual Report on Form 10-K for the year ended December 31, 2017 for a summary of our other significant accounting policies. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 3. New Accounting Pronouncements Recently Adopted Accounting Pronouncements The FASB previously issued five ASUs related to revenue recognition (“new revenue recognition guidance”). The ASUs issued were: (1) in May 2014, ASU 2014‑09, “Revenue from Contracts with Customers (Topic 606);” n March 2016, ASU 2016‑08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net);” (3) in “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing;” (4) in “ Revenue from Contracts with Customers (Topic 606): Narrow-scope Improvements and Practical Expedients;” and (5) in December 2016, ASU 2016‑20, “Technical Corrections and Improvements to Topic 606, Revenue From Contracts with Customers.” We evaluated the impact of the updated principal versus agent guidance on our consolidated financial statements. Under former GAAP, certain third-party costs associated with our facilities and project management contracts were accounted for on a net basis because the contracts include provisions such as “pay when paid” that mitigate payment risk with respect to services provided by third parties to our clients. Under the new revenue recognition guidance, control of the services before transfer to the client is the primary factor in determining principal versus agent assessments. Payment risk is no longer a determining factor under Topic 606. We have determined that we control the services provided by third parties on behalf of certain of our facilities and project management clients. Accordingly, under the new guidance, we are accounting for the cost of services provided by third parties and the related reimbursement revenue on a gross basis. The following table presents the effects of the adoption of the new revenue recognition guidance on our consolidated balance sheet as of December 31, 2017 (dollars in thousands): As Reported Adoption of New Revenue Recognition Guidance As Adjusted Receivables $ 3,207,285 $ (94,996 ) $ 3,112,289 Contract assets — 273,053 273,053 Total current assets 5,452,527 178,057 5,630,584 Other assets, net 422,965 56,509 479,474 Total assets 11,483,830 234,566 11,718,396 Accounts payable and accrued expenses 1,674,287 (100,615 ) 1,573,672 Compensation and employee benefits payable 803,504 100,930 904,434 Accrued bonus and profit sharing 1,072,976 5,369 1,078,345 Contract liabilities — 100,615 100,615 Total current liabilities 4,606,645 106,299 4,712,944 Deferred tax liabilities, net 114,017 33,201 147,218 Total liabilities 7,404,282 139,500 7,543,782 Accumulated earnings 3,348,385 94,622 3,443,007 Accumulated other comprehensive loss (552,858 ) 444 (552,414 ) Total CBRE Group, Inc. stockholders' equity 4,019,430 95,066 4,114,496 Total liabilities and equity 11,483,830 234,566 11,718,396 The following tables present the effects of the adoption of the new revenue recognition guidance on our consolidated statements of operations for the three and six months ended June 30, 2017 (dollars in thousands, except share amounts): Three Months Ended June 30, 2017 As Reported Adoption of New Revenue Recognition Guidance As Adjusted Revenue $ 3,342,215 $ 1,097,356 $ 4,439,571 Cost of services 2,318,562 1,090,978 3,409,540 Operating, administrative and other 712,374 241 712,615 Operating income 222,191 6,137 228,328 Income before provision for income taxes 266,758 6,137 272,895 Provision for income taxes 68,362 1,525 69,887 Net income 198,396 4,612 203,008 Net income attributable to CBRE Group, Inc. 197,165 4,612 201,777 Earnings per share: Basic income per share $ 0.59 $ 0.01 $ 0.60 Diluted income per share 0.58 0.01 0.59 Six Months Ended June 30, 2017 As Reported Adoption of New Revenue Recognition Guidance As Adjusted Revenue $ 6,323,419 $ 2,167,118 $ 8,490,537 Cost of services 4,405,641 2,150,376 6,556,017 Operating, administrative and other 1,318,605 636 1,319,241 Operating income 417,433 16,106 433,539 Income before provision for income taxes 449,534 16,106 465,640 Provision for income taxes 119,635 4,071 123,706 Net income 329,899 12,035 341,934 Net income attributable to CBRE Group, Inc. 326,762 12,035 338,797 Earnings per share: Basic income per share $ 0.97 $ 0.04 $ 1.01 Diluted income per share 0.96 0.04 1.00 See Note 2 for further discussion of the effects of the adoption of ASU 2014-09 on our significant accounting policies. In January 2016, the FASB issued ASU 2016‑01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” In August 2016, the FASB issued ASU 2016‑15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” • An accounting policy election was made in the first quarter of 2018 to classify distributions from all of our equity method investments based on the • Purchase price payments made related to acquisitions more than three months after the acquisition closed are to be reflected as cash flows from financing activities (assuming they do not exceed the amount recorded in the initial measurement period). If we record an increase to the estimated purchase price liability post-measurement period, then such increase (i.e. amounts we pay out above and beyond initial estimate of liability) would get recorded as an operating cash flow. This resulted in $15.1 million of cash paid for acquisitions being reclassified from cash used in investing activities to cash used in financing activities for the first six months of 2017; • Payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment are to be reflected as cash used in financing activities. During the six months ended June 30, 2018, we paid a $20.0 million premium in connection with the early redemption of our 5.00% senior notes (see Note 9). Such premium has been reflected in cash used in financing activities in the consolidated statement of cash flows for the six months ended June 30, 2018. In November 2016, the FASB issued ASU 2016‑18, “Statement of Cash Flows (Topic 230): Restricted Cash.” Recent Accounting Pronouncements Pending Adoption The FASB previously issued two ASUs related to leases. The ASUs issued were: (1) in February 2016, ASU 2016-02, “Leases (Topic 842)” “Codification Improvements to Topic 842, Leases.” In June 2016, the FASB issued ASU 2016‑13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In January 2017, the FASB issued ASU 2017‑04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” In March 2017, the FASB issued ASU 2017‑08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” In August 2017, the FASB issued ASU 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” In February 2018, the FASB issued ASU 2018‑02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” In July 2018, the FASB issued ASU 2018‑09, “Codification Improvements.” |
FacilitySource Acquisition
FacilitySource Acquisition | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
FacilitySource Acquisition | 4. FacilitySource Acquisition On June 12, 2018, CBRE Jason Acquisition LLC (Merger Sub), our wholly-owned subsidiary, and FacilitySource Holdings, LLC (FacilitySource), WP X Finance, LP and Warburg Pincus X Partners, LP (collectively, the Stockholders) entered into a stock purchase agreement and plan of merger (the Merger Agreement). As part of the Merger Agreement, (i) we purchased from the Stockholders all the outstanding shares of capital stock of FS WP Holdco, Inc (Blocker Corp), which owned 1,686,013 Class A units (the Blocker Units) and (ii) immediately following the acquisition of Blocker Corp, Merger Sub merged with FacilitySource, with FacilitySource continuing as the surviving company and our wholly-owned subsidiary within our Americas segment (the FacilitySource Acquisition), with the remaining Blocker Units not held by Blocker Corp. cancelled and converted into the right to receive cash consideration as set forth in the Merger Agreement. The estimated net initial purchase price was approximately $265.5 million, with $262.0 million paid in cash, plus adjustments for working capital and other items. We financed the transaction with cash on hand and borrowings under our revolving credit facility. We completed the FacilitySource Acquisition to help us (i) build a tech-enabled supply chain capability that is unique for the occupier outsourcing industry and (ii) drive meaningfully differentiated outcomes for leading occupiers of real estate. The following represents a summary of the excess purchase price over the estimated fair value of net assets acquired (dollars in thousands): Estimated purchase price $ 265,465 Less: Estimated fair value of net assets acquired (see table below) (69,719 ) Excess purchase price over estimated fair value of net assets acquired $ 195,746 The preliminary purchase accounting related to the FacilitySource Acquisition has been recorded in the accompanying consolidated financial statements. The excess purchase price over the estimated fair value of net assets acquired has been recorded to goodwill. The goodwill arising from the FacilitySource Acquisition consists largely of the synergies and economies of scale expected from combining the operations acquired from FacilitySource with ours. We are currently assessing if any portion of the goodwill recorded in connection with the FacilitySource Acquisition will be deductible for tax purposes. Given the complexity of the transaction, the calculation of the fair value of certain assets and liabilities acquired, primarily intangible assets, computer software and income tax items, is still preliminary. The purchase price allocation is expected to be completed as soon as practicable, but no later than one year from the acquisition date. The following table summarizes the aggregate estimated fair values of the assets acquired and the liabilities assumed in the FacilitySource Acquisition (dollars in thousands): Assets Acquired: Cash and cash equivalents $ 2,627 Receivables, net 37,902 Prepaid expenses 477 Property and equipment 60,530 Other intangible assets 89,000 Other assets 114 Total assets acquired 190,650 Liabilities Assumed: Accounts payable and accrued expenses 47,663 Compensation and employee benefits payable 1,800 Accrued bonus and profit sharing 5,036 Line of credit and term loan 26,295 Deferred tax liability 39,009 Other liabilities 1,128 Total liabilities assumed 120,931 Estimated Fair Value of Net Assets Acquired $ 69,719 The following is a summary of the preliminary estimate of the amortizable intangible assets and depreciable computer software acquired in connection with the FacilitySource Acquisition (dollars in thousands): At June 30, 2018 Asset Class Weighted Average Amortization/ Depreciation Period Amount Assigned at Acquisition Date Accumulated Amortization and Depreciation Net Carrying Value Intangibles: Trade names 20 years $ 50,400 $ 105 $ 50,295 Customer relationships 6.67 years 38,600 241 38,359 Total amortizable intangible assets acquired 14.22 years $ 89,000 $ 346 $ 88,654 Property and Equipment: Computer software 10 years $ 57,650 $ 240 $ 57,410 Upon close of the FacilitySource Acquisition, we immediately repaid the line of credit and term loan assumed from FacilitySource. The accompanying consolidated statement of operations for the three and six months ended June 30, 2018 include revenue, an operating loss and a net loss of $12.6 million, ($0.2) million and ($0.2) million, respectively, attributable to the FacilitySource Acquisition. This does not include direct transaction and integration costs of $0.2 million and depreciation and amortization expense of $0.6 million related to computer software and intangible assets acquired, all of which were incurred during both the three and six months ended June 30, 2018 in connection with the FacilitySource Acquisition. Unaudited pro forma results, assuming the FacilitySource Acquisition had occurred as of January 1, 2017 for purposes of the pro forma disclosures for the three and six months ended June 30, 2018 and 2017, are presented below. They include certain adjustments for increased depreciation and amortization expense related to acquired computer software and intangible assets as well as increased interest expense associated with borrowings under our revolving credit facility used to fund the acquisition, as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Depreciation expense $ 1,201 $ 1,235 $ 2,642 $ 2,469 Amortization expense 1,731 2,078 3,809 4,155 Interest expense 1,224 1,525 2,748 3,049 Pro forma adjustments also include the removal of $0.2 million of direct costs incurred by us during the three and six months ended June 30, 2018 as well as the tax impact of all pro forma adjustments for all periods presented. These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the FacilitySource Acquisition occurred on January 1, 2017 and may not be indicative of future operating results (dollars in thousands, except share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenue $ 5,141,339 $ 4,476,952 $ 9,852,160 $ 8,565,300 Operating income 218,988 220,565 424,689 418,015 Net income attributable to CBRE Group, Inc. 222,941 195,874 366,083 326,993 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 0.66 $ 0.58 $ 1.08 $ 0.97 Weighted average shares outstanding for basic income per share 339,081,556 336,975,149 338,986,354 336,941,681 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 0.65 $ 0.57 $ 1.07 $ 0.96 Weighted average shares outstanding for diluted income per share 343,471,513 340,882,603 343,031,189 340,214,246 |
Warehouse Receivables & Warehou
Warehouse Receivables & Warehouse Lines of Credit | 6 Months Ended |
Jun. 30, 2018 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Warehouse Receivables & Warehouse Lines of Credit | 5. Warehouse Receivables & Warehouse Lines of Credit 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 June 30, 2018 and December 31, 2017, 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. A rollforward of our warehouse receivables is as follows (dollars in thousands): Beginning balance at December 31, 2017 $ 928,038 Origination of mortgage loans 7,552,229 Gains (premiums on loan sales) 25,890 Proceeds from sale of mortgage loans: Sale of mortgage loans (6,993,724 ) Cash collections of premiums on loan sales (25,890 ) Proceeds from sale of mortgage loans (7,019,614 ) Net increase in mortgage servicing rights included in warehouse receivables 1,781 Ending balance at June 30, 2018 $ 1,488,324 The following table is a summary of our warehouse lines of credit in place as of June 30, 2018 and December 31, 2017 (dollars in thousands): June 30, 2018 December 31, 2017 Maximum Maximum Lender Current Maturity Pricing Facility Size Carrying Value Facility Size Carrying Value JP Morgan Chase Bank, N.A. (JP Morgan) 10/23/2018 daily one-month LIBOR plus 1.45% $ 1,000,000 $ 725,150 $ 1,000,000 $ 192,180 JP Morgan 10/23/2018 daily one-month LIBOR plus 2.75% 25,000 — 25,000 5,800 Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program Cancelable anytime daily one-month LIBOR plus 1.35%, with a LIBOR floor of 0.35% 450,000 15,338 450,000 205,827 TD Bank, N.A. (TD Bank) (1) 6/30/2019 daily one-month LIBOR plus 1.20% 400,000 366,043 800,000 225,416 Bank of America, N.A. (BofA) (2) 9/4/2018 daily one-month LIBOR plus 1.40% 225,000 225,303 337,500 130,443 Capital One, N.A. (Capital One) (3) 7/27/2018 daily one-month LIBOR plus 1.40% 200,000 139,757 387,500 151,100 $ 2,300,000 $ 1,471,591 $ 3,000,000 $ 910,766 (1) Line was temporarily increased from $400.0 million to $800.0 million to accommodate year-end volume. Maximum facility reverted back to $400.0 million on February 1, 2018. During July 2018, to accommodate increased volume, line was increased to $800.0 million, which will continue until maturity date unless we elect to adjust. Our arrangement with TD Bank allows us to increase or decrease the line with two-week notice. (2) Line was temporarily increased from $225.0 million to $337.5 million to accommodate year-end volume. Maximum facility reverted back to $225.0 million on January 27, 2018. Effective July 2, 2018, line was temporarily increased from $225.0 million to $337.5 million to accommodate projected volume in July. Maximum facility will revert back to $225.0 million on August 18, 2018. (3) Line was temporarily increased from $200.0 million to $387.5 million to accommodate year-end volume. Maximum facility reverted back to $200.0 million on January 9, 2018. During July 2018, to accommodate increased volume, the line was temporarily increased from $200.0 million to $375.0 million and will revert back to $200.0 million on October 1, 2018. Additionally, in July 2018 the maturity date of the warehouse line with Capital One was extended for one year. During the six months ended June 30, 2018, we had a maximum of $1.5 billion of warehouse lines of credit principal outstanding. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Variable Interest Entities (VIEs) | 6. Variable Interest Entities (VIEs) We hold variable interests in certain VIEs in our Global Investment Management and Development Services segments 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 June 30, 2018 and December 31, 2017, our maximum exposure to loss related to the VIEs which are not consolidated was as follows (dollars in thousands): June 30, December 31, 2018 2017 Investments in unconsolidated subsidiaries $ 25,160 $ 26,273 Co-investment commitments 4,266 2,364 Other current assets 3,475 3,401 Maximum exposure to loss $ 32,901 $ 32,038 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements Topic 820 of the FASB Accounting Standards Codification defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or 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. There were no significant transfers in or out of Level 1 and Level 2 during the three and six months ended June 30, 2018 and 2017. There have been no significant changes to the valuation techniques and inputs used to develop the recurring fair value measurements from those disclosed in our 2017 Annual Report. The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 (dollars in thousands): As of June 30, 2018 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 3,626 $ — $ — $ 3,626 Debt securities issued by U.S. federal agencies — 10,134 — 10,134 Corporate debt securities — 27,845 — 27,845 Asset-backed securities — 3,965 — 3,965 Collateralized mortgage obligations — 2,288 — 2,288 Total available for sale debt securities 3,626 44,232 — 47,858 Equity securities 140,035 — — 140,035 Warehouse receivables — 1,488,324 — 1,488,324 Total assets at fair value $ 143,661 $ 1,532,556 $ — $ 1,676,217 Liabilities Interest rate swaps $ — $ 2,091 $ — $ 2,091 Securities sold, not yet purchased 3,556 — — 3,556 Total liabilities at fair value $ 3,556 $ 2,091 $ — $ 5,647 As of December 31, 2017 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 3,820 $ — $ — $ 3,820 Debt securities issued by U.S. federal agencies — 4,901 — 4,901 Corporate debt securities — 20,023 — 20,023 Asset-backed securities — 3,577 — 3,577 Collateralized mortgage obligations — 2,366 — 2,366 Total available for sale debt securities 3,820 30,867 — 34,687 Equity securities 133,595 — — 133,595 Warehouse receivables — 928,038 — 928,038 Total assets at fair value $ 137,415 $ 958,905 $ — $ 1,096,320 Liabilities Interest rate swaps $ — $ 4,766 $ — $ 4,766 Securities sold, not yet purchased 3,431 — — 3,431 Foreign currency exchange forward contracts — 55 — 55 Total liabilities at fair value $ 3,431 $ 4,821 $ — $ 8,252 There were no significant non-recurring fair value measurements recorded during the three and six months ended June 30, 2018 and 2017. FASB ASC Topic 825, “Financial Instruments” • 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 based on market prices at the balance sheet date. • Debt & Equity Securities – These investments are carried at their fair value. • Foreign Currency Exchange Forward Contracts – These assets and liabilities are carried at their fair value as calculated by using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. • Securities Sold, not yet Purchased – These liabilities are carried at their fair value. • 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 9). • 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 $742.5 million at June 30, 2018 and $199.9 million at December 31, 2017. Their actual carrying value, net of unamortized debt issuance costs, totaled $743.7 million and $193.5 million at June 30, 2018 and December 31, 2017, respectively (see Note 9). • Interest Rate Swaps – These liabilities are carried at their fair value as calculated by using widely-accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. • Senior Notes – Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair values of our 4.875% senior notes and 5.25% senior notes were $622.5 million and $447.0 million, respectively, at June 30, 2018 and $645.7 million and $468.0 million, respectively, at December 31, 2017. The actual carrying value of our 4.875% senior notes and 5.25% senior notes, net of unamortized debt issuance costs as well as unamortized discount or premium, if applicable, totaled $592.4 million and $422.6 million, respectively, at June 30, 2018 and $592.0 million and $422.4 million, respectively, at December 31, 2017. In March 2018, we redeemed our 5.00% senior notes in full (see Note 9). At December 31, 2017, the estimated fair value (based on dealers’ quotes) and actual carrying value (net of unamortized debt issuance costs) of our 5.00% senior notes was $823.8 million and $791.7 million, respectively. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries | 8. 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 5.0% in our Global Investment Management segment, up to 10.0% in our Development Services segment, and up to 50.0% in our other business segments. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Global Investment Management Revenue $ 361,317 $ 237,907 $ 625,287 $ 505,058 Operating income 206,206 76,410 277,362 91,888 Net income 138,954 60,307 173,291 64,397 Development Services Revenue $ 31,329 $ 27,477 $ 54,005 $ 49,003 Operating income 24,560 157,296 83,137 177,857 Net income 17,117 150,055 70,313 166,152 Other Revenue $ 52,384 $ 44,145 $ 108,937 $ 70,003 Operating income 5,415 8,800 11,890 10,979 Net income 5,757 11,510 12,220 13,658 Total Revenue $ 445,030 $ 309,529 $ 788,229 $ 624,064 Operating income 236,181 242,506 372,389 280,724 Net income 161,828 221,872 255,824 244,207 |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | 9. Long-Term Debt and Short-Term Borrowings Long-Term Debt Long-term debt consists of the following (dollars in thousands): June 30, December 31, 2018 2017 Senior term loans, with interest ranging from 2.51% to 3.07%, due quarterly through 2022 $ 750,000 $ 200,000 4.875% senior notes due in 2026, net of unamortized discount 596,460 596,273 5.25% senior notes due in 2025, net of unamortized premium 426,226 426,317 5.00% senior notes, redeemed in full in March 2018 — 800,000 Other 5,711 8 Total long-term debt 1,778,397 2,022,598 Less: current maturities of long-term debt (1,466 ) (8 ) Less: unamortized debt issuance costs (14,046 ) (22,987 ) Total long-term debt, net of current maturities $ 1,762,885 $ 1,999,603 We maintain credit facilities with third-party lenders, which we use for a variety of purposes. On October 31, 2017, CBRE Services, Inc. (CBRE Services), our wholly-owned subsidiary, entered into a Credit Agreement (the 2017 Credit Agreement), which refinanced and replaced our prior credit agreement (the 2015 Credit Agreement). We used $200.0 million of borrowings from the tranche A term loan facility and $83.0 million of revolving credit facility borrowings under the 2017 Credit Agreement, in addition to cash on hand, to repay all amounts outstanding under the 2015 Credit Agreement. The 2017 Credit Agreement is a senior unsecured credit facility that is jointly and severally guaranteed by us and certain of our subsidiaries. As of June 30, 2018, the 2017 Credit Agreement provided for the following: (1) a $2.8 billion revolving credit facility, which includes the capacity to obtain letters of credit and swingline loans and matures on October 31, 2022 and (2) a $750.0 million delayed draw tranche A term loan facility, requiring quarterly principal payments, which began on March 5, 2018 and continue through maturity on October 31, 2022, provided that in the event that our leverage ratio (as defined in the 2017 Credit Agreement) is less than or equal to 2.50 to 1.00 on the last day of the fiscal quarter immediately preceding any such payment date, no such quarterly principal payment shall be required on such date. On March 14, 2013, CBRE Services issued $800.0 million in aggregate principal amount of 5.00% senior notes due March 15, 2023. The 5.00% senior notes were unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to all of its current and future secured indebtedness. The 5.00% senior notes were jointly and severally guaranteed on a senior basis by us and each domestic subsidiary of CBRE Services that guaranteed our 2017 Credit Agreement. Interest accrued at a rate of 5.00% per year and was payable semi-annually in arrears on March 15 and September 15. The 5.00% senior notes were redeemable at our option, in whole or in part, on March 15, 2018 at a redemption price of 102.5% of the principal amount on that date. We redeemed these notes in full on March 15, 2018 and incurred charges of $28.0 million, including a premium of $20.0 million and the write-off of $8.0 million of unamortized deferred financing costs. We funded this redemption with $550.0 million of borrowings from our tranche A term loan facility and borrowings from our revolving credit facility under our 2017 Credit Agreement. The amount of the 5.00% senior notes, net of unamortized debt issuance costs, included in the accompanying consolidated balance sheets was $791.7 million at December 31, 2017. The indentures governing our 4.875% senior notes and 5.25% 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, our 2017 Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the 2017 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 2017 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 2017 Credit Agreement), 4.75x) as of the end of each fiscal quarter. On this basis, our coverage ratio of consolidated EBITDA to consolidated interest expense was 16.97x for the trailing twelve months ended June 30, 2018, and our leverage ratio of total debt less available cash to consolidated EBITDA was 1.05x as of June 30, 2018. Short-Term Borrowings Revolving Credit Facility As of June 30, 2018, letters of credit totaling $2.0 million were outstanding under our revolving credit facility under our 2017 Credit Agreement. 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. As of June 30, 2018, $598.0 million was outstanding under the revolving credit facility. As of December 31, 2017, no amounts were outstanding under the revolving credit facility other than letters of credit totaling $2.0 million. 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. 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 therefor as liabilities on our financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our 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 Delegated Underwriting and Servicing Lender Program (DUS Program), to provide financing for multifamily housing with five or more units. Under the DUS Program, CBRE MCI originates, underwrites, closes and services loans without prior approval by Fannie Mae, and typically, is subject to sharing up to one-third of any losses on loans originated under the DUS Program. CBRE MCI has funded loans subject to such loss sharing arrangements with unpaid principal balances of $21.3 billion at June 30, 2018. 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 June 30, 2018 and December 31, 2017, CBRE MCI had a $60.0 million and a $58.0 million, respectively, letter of credit under this reserve arrangement, and had recorded a liability of approximately $33.9 million and $32.9 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 $734.0 million (including $491.1 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 June 30, 2018. 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. These obligations are for the period from origination of the loan to the securitization date. 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 June 30, 2018 and December 31, 2017, CBRE Capital Markets had posted a $5.0 million letter of credit under this reserve arrangement. We had outstanding letters of credit totaling $71.2 We had guarantees totaling $56.3 million as of June 30, 2018, 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 $56.3 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 June 30, 2018, 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 Development Services 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. However, we generally use “guaranteed maximum price” contracts with reputable, bondable general contractors with respect to projects for which we provide these guarantees. These contracts are intended to pass the risk to such contractors. 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 Global Investment Management 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 June 30, 2018, we had aggregate commitments of $36.5 million to fund future co-investments. Additionally, an important part of our Development Services business strategy is to invest in unconsolidated real estate subsidiaries as a principal (in most cases co-investing with our clients). As of June 30, 2018, we had committed to fund $23.5 million of additional capital to these unconsolidated subsidiaries. |
Income Per Share Information
Income Per Share Information | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Income Per Share Information | 11. Income Per Share Information The calculations of basic and diluted income per share attributable to CBRE Group, Inc. shareholders are as follows (dollars in thousands, except share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (As Adjusted) (1) (As Adjusted) (1) Basic Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 228,667 $ 201,777 $ 378,955 $ 338,797 Weighted average shares outstanding for basic income per share 339,081,556 336,975,149 338,986,354 336,941,681 Basic income per share attributable to CBRE Group, Inc. shareholders $ 0.67 $ 0.60 $ 1.12 $ 1.01 Diluted Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 228,667 $ 201,777 $ 378,955 $ 338,797 Weighted average shares outstanding for diluted income per share: Weighted average shares outstanding for basic income per share 339,081,556 336,975,149 338,986,354 336,941,681 Dilutive effect of contingently issuable shares 4,389,957 3,905,498 4,044,050 3,267,556 Dilutive effect of stock options — 1,956 785 5,009 Weighted average shares outstanding for diluted income per share 343,471,513 340,882,603 343,031,189 340,214,246 Diluted income per share attributable to CBRE Group, Inc. shareholders $ 0.67 $ 0.59 $ 1.10 $ 1.00 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. For the three and six months ended June 30, 2018, 75,851 and 51,946, 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. For the three and six months ended June 30, 2017, 1,317,651 and 2,037,886, 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 | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 12. Revenue from Contracts with Customers Disaggregated Revenue The following tables represent a disaggregation of revenue from contracts with customers for the three and six months ended June 30, 2018 and 2017 by type of service and/or region (dollars in thousands): Three Months Ended June 30, 2018 Americas EMEA APAC Global Investment Management Development Services Consolidated Topic 606 Revenue: Occupier outsourcing $ 1,923,585 $ 995,265 $ 264,717 $ — $ — $ 3,183,567 Leasing 536,660 106,295 100,186 — 839 743,980 Sales 269,636 98,081 68,883 — — 436,600 Property management 172,343 60,706 69,466 — 2,106 304,621 Valuation 64,346 43,256 30,765 — — 138,367 Commercial mortgage origination (1) 27,090 1,214 343 — — 28,647 Investment management — — — 98,947 — 98,947 Development services — — — — 15,463 15,463 Topic 606 Revenue 2,993,660 1,304,817 534,360 98,947 18,408 4,950,192 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 91,167 — — — — 91,167 Loan servicing 41,327 2,360 221 — — 43,908 Other revenue 14,273 8,275 3,619 — — 26,167 Total Out of Scope of Topic 606 Revenue 146,767 10,635 3,840 — — 161,242 Total revenue $ 3,140,427 $ 1,315,452 $ 538,200 $ 98,947 $ 18,408 $ 5,111,434 Three Months Ended June 30, 2017 (As Adjusted) (2) Americas EMEA APAC Global Investment Management Development Services Consolidated Topic 606 Revenue: Occupier outsourcing $ 1,742,122 $ 726,890 $ 236,274 $ — $ — $ 2,705,286 Leasing 450,208 88,076 81,606 — 26 619,916 Sales 261,710 94,055 78,303 — 165 434,233 Property management 161,116 59,249 56,560 — 3,098 280,023 Valuation 61,599 37,229 30,940 — — 129,768 Commercial mortgage origination (1) 29,883 1,985 915 — — 32,783 Investment management — — — 92,763 — 92,763 Development services — — — — 13,677 13,677 Topic 606 Revenue 2,706,638 1,007,484 484,598 92,763 16,966 4,308,449 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 71,727 — — — — 71,727 Loan servicing 37,190 2,682 — — — 39,872 Other revenue 11,368 5,854 2,301 — — 19,523 Total Out of Scope of Topic 606 Revenue 120,285 8,536 2,301 — — 131,122 Total revenue $ 2,826,923 $ 1,016,020 $ 486,899 $ 92,763 $ 16,966 $ 4,439,571 (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Six Months Ended June 30, 2018 Americas EMEA APAC Global Investment Management Development Services Consolidated Topic 606 Revenue: Occupier outsourcing $ 3,717,732 $ 1,889,082 $ 530,832 $ — $ — $ 6,137,646 Leasing 936,858 206,884 171,765 — 959 1,316,466 Sales 537,311 176,321 128,118 — 418 842,168 Property management 346,171 118,917 139,496 — 3,661 608,245 Valuation 123,412 84,319 56,854 — — 264,585 Commercial mortgage origination (1) 48,917 2,437 394 — — 51,748 Investment management — — — 222,637 — 222,637 Development services — — — — 36,695 36,695 Topic 606 Revenue 5,710,401 2,477,960 1,027,459 222,637 41,733 9,480,190 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 175,360 — — — — 175,360 Loan servicing 80,853 4,648 221 — — 85,722 Other revenue 24,037 14,098 5,979 — — 44,114 Total Out of Scope of Topic 606 Revenue 280,250 18,746 6,200 — — 305,196 Total revenue $ 5,990,651 $ 2,496,706 $ 1,033,659 $ 222,637 $ 41,733 $ 9,785,386 Six Months Ended June 30, 2017 (As Adjusted) (2) Americas EMEA APAC Global Investment Management Development Services Consolidated Topic 606 Revenue: Occupier outsourcing $ 3,406,476 $ 1,393,584 $ 442,699 $ — $ — $ 5,242,759 Leasing 844,073 163,007 142,134 — 180 1,149,394 Sales 495,506 161,355 130,471 — 695 788,027 Property management 322,513 113,989 111,239 — 5,008 552,749 Valuation 118,780 69,738 57,705 — — 246,223 Commercial mortgage origination (1) 49,701 3,805 1,454 — — 54,960 Investment management — — — 182,329 — 182,329 Development services — — — — 25,300 25,300 Topic 606 Revenue 5,237,049 1,905,478 885,702 182,329 31,183 8,241,741 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 134,274 — — — — 134,274 Loan servicing 70,724 5,558 — — — 76,282 Other revenue 24,082 9,615 4,543 — — 38,240 Total Out of Scope of Topic 606 Revenue 229,080 15,173 4,543 — — 248,796 Total revenue $ 5,466,129 $ 1,920,651 $ 890,245 $ 182,329 $ 31,183 $ 8,490,537 (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Contract Assets and Liabilities We had contract assets totaling $169.3 million ($109.3 million of which was current) and $330.9 million ($273.1 million of which was current) as of June 30, 2018 and December 31, 2017, respectively. During the six months ended June 30, 2018, our contract assets decreased by $161.7 million, primarily due to contract assets moving to accounts receivable in our occupier outsourcing business (due to at-risk and incentive fees becoming billable per the contract terms) and in our leasing business (billing of commissions). We had contract liabilities totaling $86.8 million ($76.2 million of which was current) and $100.6 million (all of which was current) as of June 30, 2018 and December 31, 2017, respectively. During the six months ended June 30, 2018, we recognized revenue of $64.1 million that was included in the contract liability balance at December 31, 2017. Contract Costs Within our Occupier Outsourcing business line, we incur transition costs to fulfil contracts prior to services being rendered. We capitalized $13.4 million and $23.0 million, respectively, of transition costs during the three and six months ended June 30, 2018, and $5.8 million and $14.7 million, respectively, of transition costs during the three and six months ended June 30, 2017. We recorded amortization of transition costs of $6.2 million and $12.2 million, respectively, during the three and six months ended June 30, 2018 and $3.6 million and $7.2 million, respectively, during the three and six months ended June 30, 2017. No impairment loss in relation to the costs capitalized was recorded during the three and six months ended June 30, 2018 or 2017. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | 13. Segments We report our operations through the following segments: (1) Americas; (2) Europe, Middle East and Africa (EMEA); (3) Asia Pacific; (4) Global Investment Management; and (5) Development Services. Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (As Adjusted) (1) (As Adjusted) (1) Revenue Americas $ 3,140,427 $ 2,826,923 $ 5,990,651 $ 5,466,129 EMEA 1,315,452 1,016,020 2,496,706 1,920,651 Asia Pacific 538,200 486,899 1,033,659 890,245 Global Investment Management 98,947 92,763 222,637 182,329 Development Services 18,408 16,966 41,733 31,183 Total revenue $ 5,111,434 $ 4,439,571 $ 9,785,386 $ 8,490,537 Adjusted EBITDA Americas $ 258,353 $ 233,711 $ 484,196 $ 458,936 EMEA 66,519 70,293 103,465 105,748 Asia Pacific 42,861 44,556 76,741 67,832 Global Investment Management 15,901 23,910 45,593 49,769 Development Services 55,673 46,216 77,119 49,578 Total Adjusted EBITDA $ 439,307 $ 418,686 $ 787,114 $ 731,863 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Adjusted EBITDA is the measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. EBITDA represents earnings before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization. Amounts shown for adjusted EBITDA further remove (from EBITDA) the impact of certain cash and non-cash charges related to acquisitions and certain carried interest incentive compensation reversal to align with the timing of associated revenue. Adjusted EBITDA is calculated as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (As Adjusted) (1) (As Adjusted) (1) Net income attributable to CBRE Group, Inc. $ 228,667 $ 201,777 $ 378,955 $ 338,797 Add: Depreciation and amortization 113,399 100,386 221,564 194,423 Interest expense 26,885 35,430 55,743 69,440 Write-off of financing costs on extinguished debt — — 27,982 — Provision for income taxes 70,319 69,887 116,483 123,706 Less: Interest income 1,489 1,427 5,110 3,838 EBITDA 437,781 406,053 795,617 722,528 Adjustments: Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue 1,526 (2,775 ) (8,503 ) (18,016 ) Integration and other costs related to acquisitions — 15,408 — 27,351 Adjusted EBITDA $ 439,307 $ 418,686 $ 787,114 $ 731,863 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Geographic Information Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (As Adjusted) (1) (As Adjusted) (1) Revenue United States $ 2,908,185 $ 2,644,445 $ 5,582,402 $ 5,116,851 United Kingdom 634,264 518,988 1,214,781 991,143 All other countries 1,568,985 1,276,138 2,988,203 2,382,543 Total revenue $ 5,111,434 $ 4,439,571 $ 9,785,386 $ 8,490,537 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Guarantor and Nonguarantor Fina
Guarantor and Nonguarantor Financial Statements | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Guarantor and Nonguarantor Financial Statements | 14. Guarantor and Nonguarantor Financial Statements The following condensed consolidating financial information (dollars in thousands) includes condensed consolidating balance sheets as of June 30, 2018 and December 31, 2017 and condensed consolidating statements of operations and condensed consolidating statements of comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 and condensed consolidating statements of cash flows for the six months ended June 30, 2018 and 2017 of: • CBRE Group, Inc., as the parent; CBRE Services, as the subsidiary issuer; the guarantor subsidiaries; the nonguarantor subsidiaries; • Elimination entries necessary to consolidate CBRE Group, Inc., as the parent, with CBRE Services and its guarantor and nonguarantor subsidiaries; and • CBRE Group, Inc., on a consolidated basis. Investments in consolidated subsidiaries are presented using the equity method of accounting. The principal elimination entries eliminate investments in consolidated subsidiaries and intercompany balances and transactions. Condensed Consolidating Balance Sheets As of June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 8,404 $ 78,760 $ 444,310 $ — $ 531,481 Restricted cash — — 2,034 69,831 — 71,865 Receivables, net — — 1,361,023 1,963,499 — 3,324,522 Warehouse receivables (1) — — 964,915 523,409 — 1,488,324 Prepaid expenses — — 119,201 149,025 — 268,226 Contract assets — — 69,537 39,735 — 109,272 Income taxes receivable 3,173 3,744 6,635 41,116 (6,916 ) 47,752 Other current assets — — 67,968 197,300 — 265,268 Total Current Assets 3,180 12,148 2,670,073 3,428,225 (6,916 ) 6,106,710 Property and equipment, net — — 508,976 196,493 — 705,469 Goodwill — — 1,958,448 1,448,721 — 3,407,169 Other intangible assets, net — — 821,779 626,505 — 1,448,284 Investments in unconsolidated subsidiaries — — 192,203 41,686 — 233,889 Investments in consolidated subsidiaries 5,972,519 5,585,138 3,126,655 — (14,684,312 ) — Intercompany loan receivable — 2,732,714 700,000 — (3,432,714 ) — Deferred tax assets, net — — 5,300 101,859 (9,269 ) 97,890 Other assets, net — 20,639 415,638 99,769 — 536,046 Total Assets $ 5,975,699 $ 8,350,639 $ 10,399,072 $ 5,943,258 $ (18,133,211 ) $ 12,535,457 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 18,763 $ 524,878 $ 1,098,389 $ — $ 1,642,030 Compensation and employee benefits payable — 626 504,909 365,091 — 870,626 Accrued bonus and profit sharing — — 353,632 275,412 — 629,044 Contract liabilities — — 35,149 41,067 — 76,216 Income taxes payable — — 12,327 16,507 (6,916 ) 21,918 Short-term borrowings: — Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1) — — 955,246 516,345 — 1,471,591 Revolving credit facility — 598,000 — — — 598,000 Other — — 16 — — 16 Total short-term borrowings — 598,000 955,262 516,345 — 2,069,607 Current maturities of long-term debt — — 59 1,407 — 1,466 Other current liabilities — — 55,886 14,342 — 70,228 Total Current Liabilities — 617,389 2,442,102 2,328,560 (6,916 ) 5,381,135 Long-Term Debt, net: Long-term debt, net — 1,758,640 29 4,216 — 1,762,885 Intercompany loan payable 1,522,122 — 1,849,837 60,755 (3,432,714 ) — Total Long-Term Debt, net 1,522,122 1,758,640 1,849,866 64,971 (3,432,714 ) 1,762,885 Deferred tax liabilities, net — — 70,996 125,335 (9,269 ) 187,062 Non-current tax liabilities — — 136,320 3,730 — 140,050 Other liabilities — 2,091 314,650 230,713 — 547,454 Total Liabilities 1,522,122 2,378,120 4,813,934 2,753,309 (3,448,899 ) 8,018,586 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 4,453,577 5,972,519 5,585,138 3,126,655 (14,684,312 ) 4,453,577 Non-controlling interests — — — 63,294 — 63,294 Total Equity 4,453,577 5,972,519 5,585,138 3,189,949 (14,684,312 ) 4,516,871 Total Liabilities and Equity $ 5,975,699 $ 8,350,639 $ 10,399,072 $ 5,943,258 $ (18,133,211 ) $ 12,535,457 (1) Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 4.875% senior notes, 5.25% senior notes and our 2017 Credit Agreement, a substantial majority of warehouse receivables funded under JP Morgan, TD Bank, BofA, Capital One and Fannie Mae ASAP lines of credit are pledged to JP Morgan, TD Bank, BofA, Capital One and Fannie Mae. Condensed Consolidating Balance Sheets As of December 31, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 15,604 $ 112,048 $ 624,115 $ — $ 751,774 Restricted cash — — 2,095 70,950 — 73,045 Receivables, net — — 990,923 2,121,366 — 3,112,289 Warehouse receivables (2) — — 479,628 448,410 — 928,038 Prepaid expenses — — 81,106 134,230 — 215,336 Contract assets — — 263,756 9,297 — 273,053 Income taxes receivable 2,162 — — 49,628 (2,162 ) 49,628 Other current assets — — 50,556 176,865 — 227,421 Total Current Assets 2,169 15,604 1,980,112 3,634,861 (2,162 ) 5,630,584 Property and equipment, net — — 431,755 185,984 — 617,739 Goodwill — — 1,774,529 1,480,211 — 3,254,740 Other intangible assets, net — — 751,930 647,182 — 1,399,112 Investments in unconsolidated subsidiaries — — 197,395 40,606 — 238,001 Investments in consolidated subsidiaries 5,551,781 4,930,109 3,066,303 — (13,548,193 ) — Intercompany loan receivable — 2,621,330 700,000 — (3,321,330 ) — Deferred tax assets, net — — 5,300 98,746 (5,300 ) 98,746 Other assets, net — 22,810 348,191 108,473 — 479,474 Total Assets $ 5,553,950 $ 7,589,853 $ 9,255,515 $ 6,196,063 $ (16,876,985 ) $ 11,718,396 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 29,708 $ 404,367 $ 1,139,597 $ — $ 1,573,672 Compensation and employee benefits payable — 626 479,306 424,502 — 904,434 Accrued bonus and profit sharing — — 590,534 487,811 — 1,078,345 Contract liabilities — — 42,994 57,621 — 100,615 Income taxes payable — 3,314 13,704 55,778 (2,162 ) 70,634 Short-term borrowings: — Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (2) — — 474,195 436,571 — 910,766 Other — — 16 — — 16 Total short-term borrowings — — 474,211 436,571 — 910,782 Current maturities of long-term debt — — — 8 — 8 Other current liabilities — 55 56,260 18,139 — 74,454 Total Current Liabilities — 33,703 2,061,376 2,620,027 (2,162 ) 4,712,944 Long-Term Debt, net: Long-term debt, net — 1,999,603 — — — 1,999,603 Intercompany loan payable 1,439,454 — 1,798,550 83,326 (3,321,330 ) — Total Long-Term Debt, net 1,439,454 1,999,603 1,798,550 83,326 (3,321,330 ) 1,999,603 Deferred tax liabilities, net — — 29,785 122,733 (5,300 ) 147,218 Non-current tax liabilities — — 135,396 5,396 — 140,792 Other liabilities — 4,766 300,299 238,160 — 543,225 Total Liabilities 1,439,454 2,038,072 4,325,406 3,069,642 (3,328,792 ) 7,543,782 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 4,114,496 5,551,781 4,930,109 3,066,303 (13,548,193 ) 4,114,496 Non-controlling interests — — — 60,118 — 60,118 Total Equity 4,114,496 5,551,781 4,930,109 3,126,421 (13,548,193 ) 4,174,614 Total Liabilities and Equity $ 5,553,950 $ 7,589,853 $ 9,255,515 $ 6,196,063 $ (16,876,985 ) $ 11,718,396 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. (2) Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 4.875% senior notes, 5.25% senior notes and our 2017 Credit Agreement, a substantial majority of warehouse receivables funded under TD Bank, Fannie Mae ASAP, JP Morgan, Capital One and BofA lines of credit are pledged to TD Bank, Fannie Mae, JP Morgan, Capital One and BofA, and accordingly, are not included as collateral for these notes or our other outstanding debt. Condensed Consolidating Statements of Operations Three Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 2,848,854 $ 2,262,580 $ — $ 5,111,434 Costs and expenses: Cost of services — — 2,265,206 1,693,542 — 3,958,748 Operating, administrative and other 7,039 246 430,122 388,875 — 826,282 Depreciation and amortization — — 68,334 45,065 — 113,399 Total costs and expenses 7,039 246 2,763,662 2,127,482 — 4,898,429 Gain on disposition of real estate — — 11,212 1,099 — 12,311 Operating (loss) income (7,039 ) (246 ) 96,404 136,197 — 225,316 Equity income from unconsolidated subsidiaries — — 94,755 1,266 — 96,021 Other income — — 1,189 2,820 — 4,009 Interest income — 34,946 1,336 153 (34,946 ) 1,489 Interest expense — 26,078 32,260 3,493 (34,946 ) 26,885 Royalty and management service (income) expense — — (2,370 ) 2,370 — — Income from consolidated subsidiaries 233,952 227,472 98,642 — (560,066 ) — Income before (benefit of) provision for income taxes 226,913 236,094 262,436 134,573 (560,066 ) 299,950 (Benefit of) provision for income taxes (1,754 ) 2,142 34,964 34,967 — 70,319 Net income 228,667 233,952 227,472 99,606 (560,066 ) 229,631 Less: Net income attributable to non-controlling interests — — — 964 — 964 Net income attributable to CBRE Group, Inc. $ 228,667 $ 233,952 $ 227,472 $ 98,642 $ (560,066 ) $ 228,667 Three Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 2,590,186 $ 1,849,385 $ — $ 4,439,571 Costs and expenses: Cost of services — — 2,054,829 1,354,711 — 3,409,540 Operating, administrative and other 1,046 538 387,951 323,080 — 712,615 Depreciation and amortization — — 58,695 41,691 — 100,386 Total costs and expenses 1,046 538 2,501,475 1,719,482 — 4,222,541 Gain on disposition of real estate — — 2 11,296 — 11,298 Operating (loss) income (1,046 ) (538 ) 88,713 141,199 — 228,328 Equity income from unconsolidated subsidiaries — — 74,960 424 — 75,384 Other income — 1 612 2,573 — 3,186 Interest income — 30,698 892 535 (30,698 ) 1,427 Interest expense — 34,364 22,468 9,296 (30,698 ) 35,430 Royalty and management service (income) expense — — (897 ) 897 — — Income from consolidated subsidiaries 202,422 205,012 88,198 — (495,632 ) — Income before (benefit of) provision for income taxes 201,376 200,809 231,804 134,538 (495,632 ) 272,895 (Benefit of) provision for income taxes (401 ) (1,613 ) 26,792 45,109 — 69,887 Net income 201,777 202,422 205,012 89,429 (495,632 ) 203,008 Less: Net income attributable to non-controlling interests — — — 1,231 — 1,231 Net income attributable to CBRE Group, Inc. $ 201,777 $ 202,422 $ 205,012 $ 88,198 $ (495,632 ) $ 201,777 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Condensed Consolidating Statements of Operations Six Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 5,466,548 $ 4,318,838 $ — $ 9,785,386 Costs and expenses: Cost of services — — 4,322,819 3,255,890 — 7,578,709 Operating, administrative and other 12,743 731 802,467 742,576 — 1,558,517 Depreciation and amortization — — 132,643 88,921 — 221,564 Total costs and expenses 12,743 731 5,257,929 4,087,387 — 9,358,790 Gain on disposition of real estate — — 11,230 1,099 — 12,329 Operating (loss) income (12,743 ) (731 ) 219,849 232,550 — 438,925 Equity income from unconsolidated subsidiaries — — 134,047 2,153 — 136,200 Other income (loss) — — 2,899 (3,170 ) — (271 ) Interest income — 67,632 3,788 1,322 (67,632 ) 5,110 Interest expense — 53,953 59,291 10,131 (67,632 ) 55,743 Write-off of financing costs on extinguished debt — 27,982 — — — 27,982 Royalty and management service (income) expense — — (1,672 ) 1,672 — — Income from consolidated subsidiaries 388,525 399,815 159,054 — (947,394 ) — Income before (benefit of) provision for income taxes 375,782 384,781 462,018 221,052 (947,394 ) 496,239 (Benefit of) provision for income taxes (3,173 ) (3,744 ) 62,203 61,197 — 116,483 Net income 378,955 388,525 399,815 159,855 (947,394 ) 379,756 Less: Net income attributable to non-controlling interests — — — 801 — 801 Net income attributable to CBRE Group, Inc. $ 378,955 $ 388,525 $ 399,815 $ 159,054 $ (947,394 ) $ 378,955 Six Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 5,008,786 $ 3,481,751 $ — $ 8,490,537 Costs and expenses: Cost of services — — 3,975,517 2,580,500 — 6,556,017 Operating, administrative and other 762 887 703,760 613,832 — 1,319,241 Depreciation and amortization — — 115,425 78,998 — 194,423 Total costs and expenses 762 887 4,794,702 3,273,330 — 8,069,681 Gain on disposition of real estate — — 228 12,455 — 12,683 Operating (loss) income (762 ) (887 ) 214,312 220,876 — 433,539 Equity income from unconsolidated subsidiaries — — 89,330 1,072 — 90,402 Other income — 1 1,026 6,274 — 7,301 Interest income — 60,599 2,539 1,299 (60,599 ) 3,838 Interest expense — 67,510 44,616 17,913 (60,599 ) 69,440 Royalty and management service (income) expense — — (6,699 ) 6,699 — — Income from consolidated subsidiaries 339,267 344,076 133,717 — (817,060 ) — Income before (benefit of) provision for income taxes 338,505 336,279 403,007 204,909 (817,060 ) 465,640 (Benefit of) provision for income taxes (292 ) (2,988 ) 58,931 68,055 — 123,706 Net income 338,797 339,267 344,076 136,854 (817,060 ) 341,934 Less: Net income attributable to non-controlling interests — — — 3,137 — 3,137 Net income attributable to CBRE Group, Inc. $ 338,797 $ 339,267 $ 344,076 $ 133,717 $ (817,060 ) $ 338,797 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 228,667 $ 233,952 $ 227,472 $ 99,606 $ (560,066 ) $ 229,631 Other comprehensive income (loss): Foreign currency translation loss — — — (165,926 ) — (165,926 ) Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 628 — — — 628 Unrealized gains on interest rate swaps, net — 214 — — — 214 Unrealized holding losses on available for sale debt securities, net — — (122 ) — — (122 ) Total other comprehensive income (loss) — 842 (122 ) (165,926 ) — (165,206 ) Comprehensive income (loss) 228,667 234,794 227,350 (66,320 ) (560,066 ) 64,425 Less: Comprehensive income attributable to non-controlling interests — — — 480 — 480 Comprehensive income (loss) attributable to CBRE Group, Inc. $ 228,667 $ 234,794 $ 227,350 $ (66,800 ) $ (560,066 ) $ 63,945 Three Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 201,777 $ 202,422 $ 205,012 $ 89,429 $ (495,632 ) $ 203,008 Other comprehensive income: Foreign currency translation gain — — — 88,649 — 88,649 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 1,380 — — — 1,380 Unrealized losses on interest rate swaps, net — (217 ) — — — (217 ) Unrealized holding gains on available for sale debt securities, net — — 896 81 — 977 Other, net 3 — (13 ) — — (10 ) Total other comprehensive income 3 1,163 883 88,730 — 90,779 Comprehensive income 201,780 203,585 205,895 178,159 (495,632 ) 293,787 Less: Comprehensive income attributable to non-controlling interests — — — 1,390 — 1,390 Comprehensive income attributable to CBRE Group, Inc. $ 201,780 $ 203,585 $ 205,895 $ 176,769 $ (495,632 ) $ 292,397 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Condensed Consolidating Statements of Comprehensive Income (Loss) Six Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 378,955 $ 388,525 $ 399,815 $ 159,855 $ (947,394 ) $ 379,756 Other comprehensive income (loss): Foreign currency translation loss — — — (99,894 ) — (99,894 ) Adoption of Accounting Standards Update 2016-01, net — — (3,964 ) — — (3,964 ) Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 1,383 — — — 1,383 Unrealized gains on interest rate swaps, net — 817 — — — 817 Unrealized holding losses on available for sale debt securities, net — — (627 ) — — (627 ) Other, net — — 20 5,508 — 5,528 Total other comprehensive income (loss) — 2,200 (4,571 ) (94,386 ) — (96,757 ) Comprehensive income 378,955 390,725 395,244 65,469 (947,394 ) 282,999 Less: Comprehensive income attributable to non-controlling interests — — — 122 — 122 Comprehensive income attributable to CBRE Group, Inc. $ 378,955 $ 390,725 $ 395,244 $ 65,347 $ (947,394 ) $ 282,877 Six Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 338,797 $ 339,267 $ 344,076 $ 136,854 $ (817,060 ) $ 341,934 Other comprehensive (loss) income: Foreign currency translation gain — — — 139,837 — 139,837 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 2,888 — — — 2,888 Unrealized gains on interest rate swaps, net — 77 — — — 77 Unrealized holding gains on available for sale debt securities, net — — 1,725 175 — 1,900 Other, net (2 ) — (14 ) — — (16 ) Total other comprehensive (loss) income (2 ) 2,965 1,711 140,012 — 144,686 Comprehensive income 338,795 342,232 345,787 276,866 (817,060 ) 486,620 Less: Comprehensive income attributable to non-controlling interests — — — 3,317 — 3,317 Comprehensive income attributable to CBRE Group, Inc. $ 338,795 $ 342,232 $ 345,787 $ 273,549 $ (817,060 ) $ 483,303 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Consolidated Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 51,094 $ 2,234 $ (56,141 ) $ (89,249 ) $ (92,062 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (65,676 ) (41,806 ) (107,482 ) Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired — — (259,338 ) (5,364 ) (264,702 ) Contributions to unconsolidated subsidiaries — — (17,030 ) (4,012 ) (21,042 ) Distributions from unconsolidated subsidiaries — — 24,986 3,249 28,235 Net proceeds from disposition of real estate held for investment — — − 14,174 14,174 Purchase of equity securities — — (13,718 ) — (13,718 ) Proceeds from sale of equity securities — — 8,889 — 8,889 Purchase of available for sale debt securities — — (18,723 ) — (18,723 ) Proceeds from the sale of available for sale debt securities — — 4,121 — 4,121 Other investing activities, net — — (6,454 ) 70 (6,384 ) Net cash used in investing activities — — (342,943 ) (33,689 ) (376,632 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from senior term loans — 550,000 — — 550,000 Proceeds from revolving credit facility — 2,000,000 — — 2,000,000 Repayment of revolving credit facility — (1,402,000 ) — — (1,402,000 ) Repayment of 5.00% senior notes (including premium) — (820,000 ) — — (820,000 ) Proceeds from notes payable on real estate held for investment — — — 52 52 Repayment of notes payable on real estate held for investment — — — (13,028 ) (13,028 ) Proceeds from notes payable on real estate held for sale and under development — — — 1,101 1,101 Repayment of notes payable on real estate held for sale and under development — — — (2,991 ) (2,991 ) Acquisition of businesses (cash (paid) received for acquisitions more than three months after purchase date) — — (13,166 ) 1,983 (11,183 ) Repayment of debt assumed in acquisition of FacilitySource — — (26,295 ) — (26,295 ) Units repurchased for payment of taxes on equity awards (4,630 ) — — — (4,630 ) Non-controlling interest contributions — — — 2,744 2,744 Non-controlling interest distributions — — — (7,652 ) (7,652 ) (Increase) decrease in intercompany receivables, net (46,622 ) (337,235 ) 405,196 (21,339 ) — Other financing activities, net 158 (199 ) — (35 ) (76 ) Net cash (used in) provided by financing activities (51,094 ) (9,434 ) 365,735 (39,165 ) 266,042 Effect of currency exchange rate changes on cash and cash equivalents and restricted cash — — — (18,821 ) (18,821 ) NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH — (7,200 ) (33,349 ) (180,924 ) (221,473 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD 7 15,604 114,143 695,065 824,819 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD $ 7 $ 8,404 $ 80,794 $ 514,141 $ 603,346 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 58,814 $ — $ 523 $ 59,337 Income taxes, net $ — $ — $ 77,076 $ 82,757 $ 159,833 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Consolidated Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 49,436 $ 16,131 $ (162,159 ) $ (20,845 ) $ (117,437 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (39,925 ) (19,938 ) (59,863 ) Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired — — (20,584 ) (4,742 ) (25,326 ) Contributions to unconsolidated subsidiaries — — (23,752 ) (8,908 ) (32,660 ) Distributions from unconsolidated subsidiaries — — 19,333 4,637 23,970 Purchase of equity securities — — (9,280 ) — (9,280 ) Proceeds from sale of equity securities — — 9,428 — 9,428 Purchase of available for sale debt securities — — (10,454 ) — (10,454 ) Proceeds from the sale of available for sale debt securities — — 7,849 — 7,849 Other investing activities, net — — 2,486 (207 ) 2,279 Net cash used in investing activities — — (64,899 ) (29,158 ) (94,057 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving credit facility — 911,000 — — 911,000 Repayment of revolving credit facility — (911,000 ) — — (911,000 ) Proceeds from notes payable on real estate held for sale and under development — — — 2,137 2,137 Repayment of notes payable on real estate held for sale and under development — — — (9,189 ) (9,189 ) Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) — — (11,196 ) (3,930 ) (15,126 ) Units repurchased for payment of taxes on equity awards (1,900 ) — — — (1,900 ) Non-controlling interest contributions — — — 1,941 1,941 Non-controlling interest distributions — — — (3,904 ) (3,904 ) (Increase) decrease in intercompany receivables, net (47,896 ) (20,114 ) 46,854 21,156 — Other financing activities, net 360 — (3,145 ) (881 ) (3,666 ) Net cash (used in) provided by financing activities (49,436 ) (20,114 ) 32,513 7,330 (29,707 ) Effect of currency exchange rate changes on cash and cash equivalents and restricted cash — — — 20,190 20,190 NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH — (3,983 ) (194,545 ) (22,483 ) (221,011 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD 7 16,889 271,088 543,428 831,412 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD $ 7 $ 12,906 $ 76,543 $ 520,945 $ 610,401 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 59,446 $ — $ 44 $ 59,490 Income taxes, net $ — $ — $ 82,017 $ 81,868 $ 163,885 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 15. Subsequent Event I n June 2016, CBRE was named as a defendant in a class action lawsuit relating to its role as property manager of certain real estate investment properties owned by the plaintiffs in Florida. CBRE started managing these various properties between July 2005 and March 2007, and CBRE ceased managing these properties in January 2011. The third-party sponsors of such investment properties inappropriately managed funds for the plaintiffs which resulted in losses, used some of these funds for personal purposes, and were imprisoned for their conduct. Since the third-party sponsors could not answer financially for the resulting losses to the plaintiffs, the plaintiffs made claims against CBRE generally alleging that CBRE should have prevented the fraud perpetuated by the third-party sponsors with respect to the properties managed by CBRE. On August 3, 2018, we reached a tentative settlement agreement regarding this proceeding, which agreement is subject to negotiation of definitive settlement documentation and court approval, including the payment of $100 million to the plaintiffs. We expect that such settlement payment will be funded principally by insurance coverage |
Significant Accounting Polici24
Significant Accounting Policies Update (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Revenue Recognition We account for revenue in accordance with Accounting Standards Codification (ASC) Topic 606, “ Revenue from Contracts with Customers Other Assets and Deferred Costs – Contracts with Customers 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 12 and 13. The Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific The Americas segment is our largest segment of operations and provides a comprehensive range of services throughout the United States (U.S.), in the largest regions of Canada and in key markets in Latin America. The primary services offered consist of the following: property leasing, property sales, mortgage services, appraisal and valuation, occupier outsourcing and property management services. Our EMEA and Asia Pacific segments generally provide services similar to the Americas business segment. The EMEA segment has operations primarily in Europe, while the Asia Pacific segment has operations in Asia, Australia and New Zealand. Property Leasing and Property Sales Through our Advisory & Transaction Services business line, we provide strategic advice and execution to 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 sales, our commission is typically paid at the closing of the sale. 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 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. 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 Under the CBRE Capital Markets brand, we offer clients fully integrated 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. We typically satisfy our performance obligation when control is transferred 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 Transfers and Servicing Appraisal and Valuation 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 as services are rendered over time. Occupier Outsourcing Services We provide a broad suite of services to occupiers of real estate, including facilities management, project management, transaction management and strategic consulting. We report facilities and project management as well as strategic consulting activities in our occupier outsourcing revenue line and transaction management in our lease and sales revenue lines. 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. Facilities management services represent a series of distinct daily services rendered over time. Project management services are often provided on a portfolio wide or programmatic basis. Revenues from project management services generally includes 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. 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 services) 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 accelerate revenue if it is deemed probable there will not be significant reversal in the future. Property Management We provide property management services on a contractual basis for owners of and investors in office, industrial and retail properties. These services include construction management, marketing, building engineering, accounting and financial services. We are compensated for our services through a monthly management fee earned based on either a specified percentage of the monthly rental income, rental receipts generated from the property under management or a fixed fee. We are also often reimbursed for our administrative and payroll costs directly attributable to the properties under management. Property management services represent a series of distinct daily services rendered over time. 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 report revenues net of third-party reimbursements. Global Investment Management Our Global Investment Management business segment provides investment management services to pension funds, insurance companies, sovereign wealth funds, foundations, endowments and other institutional investors seeking to generate returns and diversification through investment in real estate. 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. 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 business segment consists of real estate development and investment activities primarily in the United States 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. 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. 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. Remaining Performance Obligations Remaining performance obligations represent the aggregate transaction prices for contracts where our performance obligations have not yet been satisfied. As of June 30, 2018, 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 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. Such deferred revenue typically results from milestone payments pertaining to future services not yet rendered. 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 Occupier Outsourcing business line. 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 services 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. Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (Tax Act) was signed into law making significant changes to the Internal Revenue Code, including, but not limited to: (i) a U.S. corporate tax rate decrease from 35% to 21%, effective for tax years beginning after December 31, 2017; (ii) the transition of U.S. international taxation from a worldwide tax system to a territorial system; and (iii) a one-time transition tax (i.e. toll charge) on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), “ Income Tax Accounting Implications of the Tax Cuts and Jobs Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 Our provision for income taxes for 2017 included a provisional amount related to our estimate of the U.S. federal and state tax impact of the transition tax and other components of the Tax Act. In the first quarter of 2018, we obtained additional information affecting the provisional amount initially recorded for the transition tax. As a result, we recorded an immaterial adjustment to the transition tax in the tax provision for the six months ended June 30, 2018. Provisional amounts that have been recorded are based upon our best estimate of the impact of the Tax Act in accordance with our understanding of the Tax Act and the related guidance available. Additional work is necessary on the provisional amount related to the transition tax, which includes performing a more detailed analysis of historic foreign earnings and tax pools and potential corresponding adjustments. |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
ASU 2014-09 [Member] | |
Schedule of Adoption of New Revenue Recognition Guidance on Financial statement | The following table presents the effects of the adoption of the new revenue recognition guidance on our consolidated balance sheet as of December 31, 2017 (dollars in thousands): As Reported Adoption of New Revenue Recognition Guidance As Adjusted Receivables $ 3,207,285 $ (94,996 ) $ 3,112,289 Contract assets — 273,053 273,053 Total current assets 5,452,527 178,057 5,630,584 Other assets, net 422,965 56,509 479,474 Total assets 11,483,830 234,566 11,718,396 Accounts payable and accrued expenses 1,674,287 (100,615 ) 1,573,672 Compensation and employee benefits payable 803,504 100,930 904,434 Accrued bonus and profit sharing 1,072,976 5,369 1,078,345 Contract liabilities — 100,615 100,615 Total current liabilities 4,606,645 106,299 4,712,944 Deferred tax liabilities, net 114,017 33,201 147,218 Total liabilities 7,404,282 139,500 7,543,782 Accumulated earnings 3,348,385 94,622 3,443,007 Accumulated other comprehensive loss (552,858 ) 444 (552,414 ) Total CBRE Group, Inc. stockholders' equity 4,019,430 95,066 4,114,496 Total liabilities and equity 11,483,830 234,566 11,718,396 The following tables present the effects of the adoption of the new revenue recognition guidance on our consolidated statements of operations for the three and six months ended June 30, 2017 (dollars in thousands, except share amounts): Three Months Ended June 30, 2017 As Reported Adoption of New Revenue Recognition Guidance As Adjusted Revenue $ 3,342,215 $ 1,097,356 $ 4,439,571 Cost of services 2,318,562 1,090,978 3,409,540 Operating, administrative and other 712,374 241 712,615 Operating income 222,191 6,137 228,328 Income before provision for income taxes 266,758 6,137 272,895 Provision for income taxes 68,362 1,525 69,887 Net income 198,396 4,612 203,008 Net income attributable to CBRE Group, Inc. 197,165 4,612 201,777 Earnings per share: Basic income per share $ 0.59 $ 0.01 $ 0.60 Diluted income per share 0.58 0.01 0.59 Six Months Ended June 30, 2017 As Reported Adoption of New Revenue Recognition Guidance As Adjusted Revenue $ 6,323,419 $ 2,167,118 $ 8,490,537 Cost of services 4,405,641 2,150,376 6,556,017 Operating, administrative and other 1,318,605 636 1,319,241 Operating income 417,433 16,106 433,539 Income before provision for income taxes 449,534 16,106 465,640 Provision for income taxes 119,635 4,071 123,706 Net income 329,899 12,035 341,934 Net income attributable to CBRE Group, Inc. 326,762 12,035 338,797 Earnings per share: Basic income per share $ 0.97 $ 0.04 $ 1.01 Diluted income per share 0.96 0.04 1.00 |
FacilitySource Acquisition (Tab
FacilitySource Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Summary of Excess Purchase Price Over Estimated Fair Value of Net Assets Acquired | The following represents a summary of the excess purchase price over the estimated fair value of net assets acquired (dollars in thousands): Estimated purchase price $ 265,465 Less: Estimated fair value of net assets acquired (see table below) (69,719 ) Excess purchase price over estimated fair value of net assets acquired $ 195,746 |
Summary of Aggregate Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the aggregate estimated fair values of the assets acquired and the liabilities assumed in the FacilitySource Acquisition (dollars in thousands): Assets Acquired: Cash and cash equivalents $ 2,627 Receivables, net 37,902 Prepaid expenses 477 Property and equipment 60,530 Other intangible assets 89,000 Other assets 114 Total assets acquired 190,650 Liabilities Assumed: Accounts payable and accrued expenses 47,663 Compensation and employee benefits payable 1,800 Accrued bonus and profit sharing 5,036 Line of credit and term loan 26,295 Deferred tax liability 39,009 Other liabilities 1,128 Total liabilities assumed 120,931 Estimated Fair Value of Net Assets Acquired $ 69,719 |
Summary of Preliminary Estimate of Amortizable Intangible Assets and Depreciable Computer Software Acquired | The following is a summary of the preliminary estimate of the amortizable intangible assets and depreciable computer software acquired in connection with the FacilitySource Acquisition (dollars in thousands): At June 30, 2018 Asset Class Weighted Average Amortization/ Depreciation Period Amount Assigned at Acquisition Date Accumulated Amortization and Depreciation Net Carrying Value Intangibles: Trade names 20 years $ 50,400 $ 105 $ 50,295 Customer relationships 6.67 years 38,600 241 38,359 Total amortizable intangible assets acquired 14.22 years $ 89,000 $ 346 $ 88,654 Property and Equipment: Computer software 10 years $ 57,650 $ 240 $ 57,410 |
Certain Adjustments to Unaudited Pro Forma Results | They include certain adjustments for increased depreciation and amortization expense related to acquired computer software and intangible assets as well as increased interest expense associated with borrowings under our revolving credit facility used to fund the acquisition, as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Depreciation expense $ 1,201 $ 1,235 $ 2,642 $ 2,469 Amortization expense 1,731 2,078 3,809 4,155 Interest expense 1,224 1,525 2,748 3,049 |
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 FacilitySource Acquisition occurred on January 1, 2017 and may not be indicative of future operating results (dollars in thousands, except share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenue $ 5,141,339 $ 4,476,952 $ 9,852,160 $ 8,565,300 Operating income 218,988 220,565 424,689 418,015 Net income attributable to CBRE Group, Inc. 222,941 195,874 366,083 326,993 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 0.66 $ 0.58 $ 1.08 $ 0.97 Weighted average shares outstanding for basic income per share 339,081,556 336,975,149 338,986,354 336,941,681 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 0.65 $ 0.57 $ 1.07 $ 0.96 Weighted average shares outstanding for diluted income per share 343,471,513 340,882,603 343,031,189 340,214,246 |
Warehouse Receivables & Wareh27
Warehouse Receivables & Warehouse Lines of Credit (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 $ 928,038 Origination of mortgage loans 7,552,229 Gains (premiums on loan sales) 25,890 Proceeds from sale of mortgage loans: Sale of mortgage loans (6,993,724 ) Cash collections of premiums on loan sales (25,890 ) Proceeds from sale of mortgage loans (7,019,614 ) Net increase in mortgage servicing rights included in warehouse receivables 1,781 Ending balance at June 30, 2018 $ 1,488,324 |
Summary of Warehouse Lines of Credit in Place | The following table is a summary of our warehouse lines of credit in place as of June 30, 2018 and December 31, 2017 (dollars in thousands): June 30, 2018 December 31, 2017 Maximum Maximum Lender Current Maturity Pricing Facility Size Carrying Value Facility Size Carrying Value JP Morgan Chase Bank, N.A. (JP Morgan) 10/23/2018 daily one-month LIBOR plus 1.45% $ 1,000,000 $ 725,150 $ 1,000,000 $ 192,180 JP Morgan 10/23/2018 daily one-month LIBOR plus 2.75% 25,000 — 25,000 5,800 Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program Cancelable anytime daily one-month LIBOR plus 1.35%, with a LIBOR floor of 0.35% 450,000 15,338 450,000 205,827 TD Bank, N.A. (TD Bank) (1) 6/30/2019 daily one-month LIBOR plus 1.20% 400,000 366,043 800,000 225,416 Bank of America, N.A. (BofA) (2) 9/4/2018 daily one-month LIBOR plus 1.40% 225,000 225,303 337,500 130,443 Capital One, N.A. (Capital One) (3) 7/27/2018 daily one-month LIBOR plus 1.40% 200,000 139,757 387,500 151,100 $ 2,300,000 $ 1,471,591 $ 3,000,000 $ 910,766 (1) Line was temporarily increased from $400.0 million to $800.0 million to accommodate year-end volume. Maximum facility reverted back to $400.0 million on February 1, 2018. During July 2018, to accommodate increased volume, line was increased to $800.0 million, which will continue until maturity date unless we elect to adjust. Our arrangement with TD Bank allows us to increase or decrease the line with two-week notice. (2) Line was temporarily increased from $225.0 million to $337.5 million to accommodate year-end volume. Maximum facility reverted back to $225.0 million on January 27, 2018. Effective July 2, 2018, line was temporarily increased from $225.0 million to $337.5 million to accommodate projected volume in July. Maximum facility will revert back to $225.0 million on August 18, 2018. (3) Line was temporarily increased from $200.0 million to $387.5 million to accommodate year-end volume. Maximum facility reverted back to $200.0 million on January 9, 2018. During July 2018, to accommodate increased volume, the line was temporarily increased from $200.0 million to $375.0 million and will revert back to $200.0 million on October 1, 2018. Additionally, in July 2018 the maturity date of the warehouse line with Capital One was extended for one year. |
Variable Interest Entities (V28
Variable Interest Entities (VIEs) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Maximum Exposure to Loss | As of June 30, 2018 and December 31, 2017, our maximum exposure to loss related to the VIEs which are not consolidated was as follows (dollars in thousands): June 30, December 31, 2018 2017 Investments in unconsolidated subsidiaries $ 25,160 $ 26,273 Co-investment commitments 4,266 2,364 Other current assets 3,475 3,401 Maximum exposure to loss $ 32,901 $ 32,038 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017 (dollars in thousands): As of June 30, 2018 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 3,626 $ — $ — $ 3,626 Debt securities issued by U.S. federal agencies — 10,134 — 10,134 Corporate debt securities — 27,845 — 27,845 Asset-backed securities — 3,965 — 3,965 Collateralized mortgage obligations — 2,288 — 2,288 Total available for sale debt securities 3,626 44,232 — 47,858 Equity securities 140,035 — — 140,035 Warehouse receivables — 1,488,324 — 1,488,324 Total assets at fair value $ 143,661 $ 1,532,556 $ — $ 1,676,217 Liabilities Interest rate swaps $ — $ 2,091 $ — $ 2,091 Securities sold, not yet purchased 3,556 — — 3,556 Total liabilities at fair value $ 3,556 $ 2,091 $ — $ 5,647 As of December 31, 2017 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 3,820 $ — $ — $ 3,820 Debt securities issued by U.S. federal agencies — 4,901 — 4,901 Corporate debt securities — 20,023 — 20,023 Asset-backed securities — 3,577 — 3,577 Collateralized mortgage obligations — 2,366 — 2,366 Total available for sale debt securities 3,820 30,867 — 34,687 Equity securities 133,595 — — 133,595 Warehouse receivables — 928,038 — 928,038 Total assets at fair value $ 137,415 $ 958,905 $ — $ 1,096,320 Liabilities Interest rate swaps $ — $ 4,766 $ — $ 4,766 Securities sold, not yet purchased 3,431 — — 3,431 Foreign currency exchange forward contracts — 55 — 55 Total liabilities at fair value $ 3,431 $ 4,821 $ — $ 8,252 |
Investments in Unconsolidated30
Investments in Unconsolidated Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Condensed Financial Information of Equity Method Investments | Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Global Investment Management Revenue $ 361,317 $ 237,907 $ 625,287 $ 505,058 Operating income 206,206 76,410 277,362 91,888 Net income 138,954 60,307 173,291 64,397 Development Services Revenue $ 31,329 $ 27,477 $ 54,005 $ 49,003 Operating income 24,560 157,296 83,137 177,857 Net income 17,117 150,055 70,313 166,152 Other Revenue $ 52,384 $ 44,145 $ 108,937 $ 70,003 Operating income 5,415 8,800 11,890 10,979 Net income 5,757 11,510 12,220 13,658 Total Revenue $ 445,030 $ 309,529 $ 788,229 $ 624,064 Operating income 236,181 242,506 372,389 280,724 Net income 161,828 221,872 255,824 244,207 |
Long-Term Debt and Short-Term31
Long-Term Debt and Short-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (dollars in thousands): June 30, December 31, 2018 2017 Senior term loans, with interest ranging from 2.51% to 3.07%, due quarterly through 2022 $ 750,000 $ 200,000 4.875% senior notes due in 2026, net of unamortized discount 596,460 596,273 5.25% senior notes due in 2025, net of unamortized premium 426,226 426,317 5.00% senior notes, redeemed in full in March 2018 — 800,000 Other 5,711 8 Total long-term debt 1,778,397 2,022,598 Less: current maturities of long-term debt (1,466 ) (8 ) Less: unamortized debt issuance costs (14,046 ) (22,987 ) Total long-term debt, net of current maturities $ 1,762,885 $ 1,999,603 |
Income Per Share Information (T
Income Per Share Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted Income Per Share | The calculations of basic and diluted income per share attributable to CBRE Group, Inc. shareholders are as follows (dollars in thousands, except share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (As Adjusted) (1) (As Adjusted) (1) Basic Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 228,667 $ 201,777 $ 378,955 $ 338,797 Weighted average shares outstanding for basic income per share 339,081,556 336,975,149 338,986,354 336,941,681 Basic income per share attributable to CBRE Group, Inc. shareholders $ 0.67 $ 0.60 $ 1.12 $ 1.01 Diluted Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 228,667 $ 201,777 $ 378,955 $ 338,797 Weighted average shares outstanding for diluted income per share: Weighted average shares outstanding for basic income per share 339,081,556 336,975,149 338,986,354 336,941,681 Dilutive effect of contingently issuable shares 4,389,957 3,905,498 4,044,050 3,267,556 Dilutive effect of stock options — 1,956 785 5,009 Weighted average shares outstanding for diluted income per share 343,471,513 340,882,603 343,031,189 340,214,246 Diluted income per share attributable to CBRE Group, Inc. shareholders $ 0.67 $ 0.59 $ 1.10 $ 1.00 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Revenue from Contracts with C33
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 for the three and six months ended June 30, 2018 and 2017 by type of service and/or region (dollars in thousands): Three Months Ended June 30, 2018 Americas EMEA APAC Global Investment Management Development Services Consolidated Topic 606 Revenue: Occupier outsourcing $ 1,923,585 $ 995,265 $ 264,717 $ — $ — $ 3,183,567 Leasing 536,660 106,295 100,186 — 839 743,980 Sales 269,636 98,081 68,883 — — 436,600 Property management 172,343 60,706 69,466 — 2,106 304,621 Valuation 64,346 43,256 30,765 — — 138,367 Commercial mortgage origination (1) 27,090 1,214 343 — — 28,647 Investment management — — — 98,947 — 98,947 Development services — — — — 15,463 15,463 Topic 606 Revenue 2,993,660 1,304,817 534,360 98,947 18,408 4,950,192 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 91,167 — — — — 91,167 Loan servicing 41,327 2,360 221 — — 43,908 Other revenue 14,273 8,275 3,619 — — 26,167 Total Out of Scope of Topic 606 Revenue 146,767 10,635 3,840 — — 161,242 Total revenue $ 3,140,427 $ 1,315,452 $ 538,200 $ 98,947 $ 18,408 $ 5,111,434 Three Months Ended June 30, 2017 (As Adjusted) (2) Americas EMEA APAC Global Investment Management Development Services Consolidated Topic 606 Revenue: Occupier outsourcing $ 1,742,122 $ 726,890 $ 236,274 $ — $ — $ 2,705,286 Leasing 450,208 88,076 81,606 — 26 619,916 Sales 261,710 94,055 78,303 — 165 434,233 Property management 161,116 59,249 56,560 — 3,098 280,023 Valuation 61,599 37,229 30,940 — — 129,768 Commercial mortgage origination (1) 29,883 1,985 915 — — 32,783 Investment management — — — 92,763 — 92,763 Development services — — — — 13,677 13,677 Topic 606 Revenue 2,706,638 1,007,484 484,598 92,763 16,966 4,308,449 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 71,727 — — — — 71,727 Loan servicing 37,190 2,682 — — — 39,872 Other revenue 11,368 5,854 2,301 — — 19,523 Total Out of Scope of Topic 606 Revenue 120,285 8,536 2,301 — — 131,122 Total revenue $ 2,826,923 $ 1,016,020 $ 486,899 $ 92,763 $ 16,966 $ 4,439,571 (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Six Months Ended June 30, 2018 Americas EMEA APAC Global Investment Management Development Services Consolidated Topic 606 Revenue: Occupier outsourcing $ 3,717,732 $ 1,889,082 $ 530,832 $ — $ — $ 6,137,646 Leasing 936,858 206,884 171,765 — 959 1,316,466 Sales 537,311 176,321 128,118 — 418 842,168 Property management 346,171 118,917 139,496 — 3,661 608,245 Valuation 123,412 84,319 56,854 — — 264,585 Commercial mortgage origination (1) 48,917 2,437 394 — — 51,748 Investment management — — — 222,637 — 222,637 Development services — — — — 36,695 36,695 Topic 606 Revenue 5,710,401 2,477,960 1,027,459 222,637 41,733 9,480,190 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 175,360 — — — — 175,360 Loan servicing 80,853 4,648 221 — — 85,722 Other revenue 24,037 14,098 5,979 — — 44,114 Total Out of Scope of Topic 606 Revenue 280,250 18,746 6,200 — — 305,196 Total revenue $ 5,990,651 $ 2,496,706 $ 1,033,659 $ 222,637 $ 41,733 $ 9,785,386 Six Months Ended June 30, 2017 (As Adjusted) (2) Americas EMEA APAC Global Investment Management Development Services Consolidated Topic 606 Revenue: Occupier outsourcing $ 3,406,476 $ 1,393,584 $ 442,699 $ — $ — $ 5,242,759 Leasing 844,073 163,007 142,134 — 180 1,149,394 Sales 495,506 161,355 130,471 — 695 788,027 Property management 322,513 113,989 111,239 — 5,008 552,749 Valuation 118,780 69,738 57,705 — — 246,223 Commercial mortgage origination (1) 49,701 3,805 1,454 — — 54,960 Investment management — — — 182,329 — 182,329 Development services — — — — 25,300 25,300 Topic 606 Revenue 5,237,049 1,905,478 885,702 182,329 31,183 8,241,741 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 134,274 — — — — 134,274 Loan servicing 70,724 5,558 — — — 76,282 Other revenue 24,082 9,615 4,543 — — 38,240 Total Out of Scope of Topic 606 Revenue 229,080 15,173 4,543 — — 248,796 Total revenue $ 5,466,129 $ 1,920,651 $ 890,245 $ 182,329 $ 31,183 $ 8,490,537 (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Summarized Financial Information by Segment | Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (As Adjusted) (1) (As Adjusted) (1) Revenue Americas $ 3,140,427 $ 2,826,923 $ 5,990,651 $ 5,466,129 EMEA 1,315,452 1,016,020 2,496,706 1,920,651 Asia Pacific 538,200 486,899 1,033,659 890,245 Global Investment Management 98,947 92,763 222,637 182,329 Development Services 18,408 16,966 41,733 31,183 Total revenue $ 5,111,434 $ 4,439,571 $ 9,785,386 $ 8,490,537 Adjusted EBITDA Americas $ 258,353 $ 233,711 $ 484,196 $ 458,936 EMEA 66,519 70,293 103,465 105,748 Asia Pacific 42,861 44,556 76,741 67,832 Global Investment Management 15,901 23,910 45,593 49,769 Development Services 55,673 46,216 77,119 49,578 Total Adjusted EBITDA $ 439,307 $ 418,686 $ 787,114 $ 731,863 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Adjusted EBITDA Calculation by Segment | Adjusted EBITDA is calculated as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (As Adjusted) (1) (As Adjusted) (1) Net income attributable to CBRE Group, Inc. $ 228,667 $ 201,777 $ 378,955 $ 338,797 Add: Depreciation and amortization 113,399 100,386 221,564 194,423 Interest expense 26,885 35,430 55,743 69,440 Write-off of financing costs on extinguished debt — — 27,982 — Provision for income taxes 70,319 69,887 116,483 123,706 Less: Interest income 1,489 1,427 5,110 3,838 EBITDA 437,781 406,053 795,617 722,528 Adjustments: Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue 1,526 (2,775 ) (8,503 ) (18,016 ) Integration and other costs related to acquisitions — 15,408 — 27,351 Adjusted EBITDA $ 439,307 $ 418,686 $ 787,114 $ 731,863 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Summary of Geographic Information | Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (As Adjusted) (1) (As Adjusted) (1) Revenue United States $ 2,908,185 $ 2,644,445 $ 5,582,402 $ 5,116,851 United Kingdom 634,264 518,988 1,214,781 991,143 All other countries 1,568,985 1,276,138 2,988,203 2,382,543 Total revenue $ 5,111,434 $ 4,439,571 $ 9,785,386 $ 8,490,537 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Guarantor and Nonguarantor Fi35
Guarantor and Nonguarantor Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets As of June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 8,404 $ 78,760 $ 444,310 $ — $ 531,481 Restricted cash — — 2,034 69,831 — 71,865 Receivables, net — — 1,361,023 1,963,499 — 3,324,522 Warehouse receivables (1) — — 964,915 523,409 — 1,488,324 Prepaid expenses — — 119,201 149,025 — 268,226 Contract assets — — 69,537 39,735 — 109,272 Income taxes receivable 3,173 3,744 6,635 41,116 (6,916 ) 47,752 Other current assets — — 67,968 197,300 — 265,268 Total Current Assets 3,180 12,148 2,670,073 3,428,225 (6,916 ) 6,106,710 Property and equipment, net — — 508,976 196,493 — 705,469 Goodwill — — 1,958,448 1,448,721 — 3,407,169 Other intangible assets, net — — 821,779 626,505 — 1,448,284 Investments in unconsolidated subsidiaries — — 192,203 41,686 — 233,889 Investments in consolidated subsidiaries 5,972,519 5,585,138 3,126,655 — (14,684,312 ) — Intercompany loan receivable — 2,732,714 700,000 — (3,432,714 ) — Deferred tax assets, net — — 5,300 101,859 (9,269 ) 97,890 Other assets, net — 20,639 415,638 99,769 — 536,046 Total Assets $ 5,975,699 $ 8,350,639 $ 10,399,072 $ 5,943,258 $ (18,133,211 ) $ 12,535,457 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 18,763 $ 524,878 $ 1,098,389 $ — $ 1,642,030 Compensation and employee benefits payable — 626 504,909 365,091 — 870,626 Accrued bonus and profit sharing — — 353,632 275,412 — 629,044 Contract liabilities — — 35,149 41,067 — 76,216 Income taxes payable — — 12,327 16,507 (6,916 ) 21,918 Short-term borrowings: — Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1) — — 955,246 516,345 — 1,471,591 Revolving credit facility — 598,000 — — — 598,000 Other — — 16 — — 16 Total short-term borrowings — 598,000 955,262 516,345 — 2,069,607 Current maturities of long-term debt — — 59 1,407 — 1,466 Other current liabilities — — 55,886 14,342 — 70,228 Total Current Liabilities — 617,389 2,442,102 2,328,560 (6,916 ) 5,381,135 Long-Term Debt, net: Long-term debt, net — 1,758,640 29 4,216 — 1,762,885 Intercompany loan payable 1,522,122 — 1,849,837 60,755 (3,432,714 ) — Total Long-Term Debt, net 1,522,122 1,758,640 1,849,866 64,971 (3,432,714 ) 1,762,885 Deferred tax liabilities, net — — 70,996 125,335 (9,269 ) 187,062 Non-current tax liabilities — — 136,320 3,730 — 140,050 Other liabilities — 2,091 314,650 230,713 — 547,454 Total Liabilities 1,522,122 2,378,120 4,813,934 2,753,309 (3,448,899 ) 8,018,586 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 4,453,577 5,972,519 5,585,138 3,126,655 (14,684,312 ) 4,453,577 Non-controlling interests — — — 63,294 — 63,294 Total Equity 4,453,577 5,972,519 5,585,138 3,189,949 (14,684,312 ) 4,516,871 Total Liabilities and Equity $ 5,975,699 $ 8,350,639 $ 10,399,072 $ 5,943,258 $ (18,133,211 ) $ 12,535,457 (1) Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 4.875% senior notes, 5.25% senior notes and our 2017 Credit Agreement, a substantial majority of warehouse receivables funded under JP Morgan, TD Bank, BofA, Capital One and Fannie Mae ASAP lines of credit are pledged to JP Morgan, TD Bank, BofA, Capital One and Fannie Mae. As of December 31, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 15,604 $ 112,048 $ 624,115 $ — $ 751,774 Restricted cash — — 2,095 70,950 — 73,045 Receivables, net — — 990,923 2,121,366 — 3,112,289 Warehouse receivables (2) — — 479,628 448,410 — 928,038 Prepaid expenses — — 81,106 134,230 — 215,336 Contract assets — — 263,756 9,297 — 273,053 Income taxes receivable 2,162 — — 49,628 (2,162 ) 49,628 Other current assets — — 50,556 176,865 — 227,421 Total Current Assets 2,169 15,604 1,980,112 3,634,861 (2,162 ) 5,630,584 Property and equipment, net — — 431,755 185,984 — 617,739 Goodwill — — 1,774,529 1,480,211 — 3,254,740 Other intangible assets, net — — 751,930 647,182 — 1,399,112 Investments in unconsolidated subsidiaries — — 197,395 40,606 — 238,001 Investments in consolidated subsidiaries 5,551,781 4,930,109 3,066,303 — (13,548,193 ) — Intercompany loan receivable — 2,621,330 700,000 — (3,321,330 ) — Deferred tax assets, net — — 5,300 98,746 (5,300 ) 98,746 Other assets, net — 22,810 348,191 108,473 — 479,474 Total Assets $ 5,553,950 $ 7,589,853 $ 9,255,515 $ 6,196,063 $ (16,876,985 ) $ 11,718,396 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 29,708 $ 404,367 $ 1,139,597 $ — $ 1,573,672 Compensation and employee benefits payable — 626 479,306 424,502 — 904,434 Accrued bonus and profit sharing — — 590,534 487,811 — 1,078,345 Contract liabilities — — 42,994 57,621 — 100,615 Income taxes payable — 3,314 13,704 55,778 (2,162 ) 70,634 Short-term borrowings: — Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (2) — — 474,195 436,571 — 910,766 Other — — 16 — — 16 Total short-term borrowings — — 474,211 436,571 — 910,782 Current maturities of long-term debt — — — 8 — 8 Other current liabilities — 55 56,260 18,139 — 74,454 Total Current Liabilities — 33,703 2,061,376 2,620,027 (2,162 ) 4,712,944 Long-Term Debt, net: Long-term debt, net — 1,999,603 — — — 1,999,603 Intercompany loan payable 1,439,454 — 1,798,550 83,326 (3,321,330 ) — Total Long-Term Debt, net 1,439,454 1,999,603 1,798,550 83,326 (3,321,330 ) 1,999,603 Deferred tax liabilities, net — — 29,785 122,733 (5,300 ) 147,218 Non-current tax liabilities — — 135,396 5,396 — 140,792 Other liabilities — 4,766 300,299 238,160 — 543,225 Total Liabilities 1,439,454 2,038,072 4,325,406 3,069,642 (3,328,792 ) 7,543,782 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 4,114,496 5,551,781 4,930,109 3,066,303 (13,548,193 ) 4,114,496 Non-controlling interests — — — 60,118 — 60,118 Total Equity 4,114,496 5,551,781 4,930,109 3,126,421 (13,548,193 ) 4,174,614 Total Liabilities and Equity $ 5,553,950 $ 7,589,853 $ 9,255,515 $ 6,196,063 $ (16,876,985 ) $ 11,718,396 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. (2) Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 4.875% senior notes, 5.25% senior notes and our 2017 Credit Agreement, a substantial majority of warehouse receivables funded under TD Bank, Fannie Mae ASAP, JP Morgan, Capital One and BofA lines of credit are pledged to TD Bank, Fannie Mae, JP Morgan, Capital One and BofA, and accordingly, are not included as collateral for these notes or our other outstanding debt. |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations Three Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 2,848,854 $ 2,262,580 $ — $ 5,111,434 Costs and expenses: Cost of services — — 2,265,206 1,693,542 — 3,958,748 Operating, administrative and other 7,039 246 430,122 388,875 — 826,282 Depreciation and amortization — — 68,334 45,065 — 113,399 Total costs and expenses 7,039 246 2,763,662 2,127,482 — 4,898,429 Gain on disposition of real estate — — 11,212 1,099 — 12,311 Operating (loss) income (7,039 ) (246 ) 96,404 136,197 — 225,316 Equity income from unconsolidated subsidiaries — — 94,755 1,266 — 96,021 Other income — — 1,189 2,820 — 4,009 Interest income — 34,946 1,336 153 (34,946 ) 1,489 Interest expense — 26,078 32,260 3,493 (34,946 ) 26,885 Royalty and management service (income) expense — — (2,370 ) 2,370 — — Income from consolidated subsidiaries 233,952 227,472 98,642 — (560,066 ) — Income before (benefit of) provision for income taxes 226,913 236,094 262,436 134,573 (560,066 ) 299,950 (Benefit of) provision for income taxes (1,754 ) 2,142 34,964 34,967 — 70,319 Net income 228,667 233,952 227,472 99,606 (560,066 ) 229,631 Less: Net income attributable to non-controlling interests — — — 964 — 964 Net income attributable to CBRE Group, Inc. $ 228,667 $ 233,952 $ 227,472 $ 98,642 $ (560,066 ) $ 228,667 Three Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 2,590,186 $ 1,849,385 $ — $ 4,439,571 Costs and expenses: Cost of services — — 2,054,829 1,354,711 — 3,409,540 Operating, administrative and other 1,046 538 387,951 323,080 — 712,615 Depreciation and amortization — — 58,695 41,691 — 100,386 Total costs and expenses 1,046 538 2,501,475 1,719,482 — 4,222,541 Gain on disposition of real estate — — 2 11,296 — 11,298 Operating (loss) income (1,046 ) (538 ) 88,713 141,199 — 228,328 Equity income from unconsolidated subsidiaries — — 74,960 424 — 75,384 Other income — 1 612 2,573 — 3,186 Interest income — 30,698 892 535 (30,698 ) 1,427 Interest expense — 34,364 22,468 9,296 (30,698 ) 35,430 Royalty and management service (income) expense — — (897 ) 897 — — Income from consolidated subsidiaries 202,422 205,012 88,198 — (495,632 ) — Income before (benefit of) provision for income taxes 201,376 200,809 231,804 134,538 (495,632 ) 272,895 (Benefit of) provision for income taxes (401 ) (1,613 ) 26,792 45,109 — 69,887 Net income 201,777 202,422 205,012 89,429 (495,632 ) 203,008 Less: Net income attributable to non-controlling interests — — — 1,231 — 1,231 Net income attributable to CBRE Group, Inc. $ 201,777 $ 202,422 $ 205,012 $ 88,198 $ (495,632 ) $ 201,777 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Condensed Consolidating Statements of Operations Six Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 5,466,548 $ 4,318,838 $ — $ 9,785,386 Costs and expenses: Cost of services — — 4,322,819 3,255,890 — 7,578,709 Operating, administrative and other 12,743 731 802,467 742,576 — 1,558,517 Depreciation and amortization — — 132,643 88,921 — 221,564 Total costs and expenses 12,743 731 5,257,929 4,087,387 — 9,358,790 Gain on disposition of real estate — — 11,230 1,099 — 12,329 Operating (loss) income (12,743 ) (731 ) 219,849 232,550 — 438,925 Equity income from unconsolidated subsidiaries — — 134,047 2,153 — 136,200 Other income (loss) — — 2,899 (3,170 ) — (271 ) Interest income — 67,632 3,788 1,322 (67,632 ) 5,110 Interest expense — 53,953 59,291 10,131 (67,632 ) 55,743 Write-off of financing costs on extinguished debt — 27,982 — — — 27,982 Royalty and management service (income) expense — — (1,672 ) 1,672 — — Income from consolidated subsidiaries 388,525 399,815 159,054 — (947,394 ) — Income before (benefit of) provision for income taxes 375,782 384,781 462,018 221,052 (947,394 ) 496,239 (Benefit of) provision for income taxes (3,173 ) (3,744 ) 62,203 61,197 — 116,483 Net income 378,955 388,525 399,815 159,855 (947,394 ) 379,756 Less: Net income attributable to non-controlling interests — — — 801 — 801 Net income attributable to CBRE Group, Inc. $ 378,955 $ 388,525 $ 399,815 $ 159,054 $ (947,394 ) $ 378,955 Six Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 5,008,786 $ 3,481,751 $ — $ 8,490,537 Costs and expenses: Cost of services — — 3,975,517 2,580,500 — 6,556,017 Operating, administrative and other 762 887 703,760 613,832 — 1,319,241 Depreciation and amortization — — 115,425 78,998 — 194,423 Total costs and expenses 762 887 4,794,702 3,273,330 — 8,069,681 Gain on disposition of real estate — — 228 12,455 — 12,683 Operating (loss) income (762 ) (887 ) 214,312 220,876 — 433,539 Equity income from unconsolidated subsidiaries — — 89,330 1,072 — 90,402 Other income — 1 1,026 6,274 — 7,301 Interest income — 60,599 2,539 1,299 (60,599 ) 3,838 Interest expense — 67,510 44,616 17,913 (60,599 ) 69,440 Royalty and management service (income) expense — — (6,699 ) 6,699 — — Income from consolidated subsidiaries 339,267 344,076 133,717 — (817,060 ) — Income before (benefit of) provision for income taxes 338,505 336,279 403,007 204,909 (817,060 ) 465,640 (Benefit of) provision for income taxes (292 ) (2,988 ) 58,931 68,055 — 123,706 Net income 338,797 339,267 344,076 136,854 (817,060 ) 341,934 Less: Net income attributable to non-controlling interests — — — 3,137 — 3,137 Net income attributable to CBRE Group, Inc. $ 338,797 $ 339,267 $ 344,076 $ 133,717 $ (817,060 ) $ 338,797 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 228,667 $ 233,952 $ 227,472 $ 99,606 $ (560,066 ) $ 229,631 Other comprehensive income (loss): Foreign currency translation loss — — — (165,926 ) — (165,926 ) Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 628 — — — 628 Unrealized gains on interest rate swaps, net — 214 — — — 214 Unrealized holding losses on available for sale debt securities, net — — (122 ) — — (122 ) Total other comprehensive income (loss) — 842 (122 ) (165,926 ) — (165,206 ) Comprehensive income (loss) 228,667 234,794 227,350 (66,320 ) (560,066 ) 64,425 Less: Comprehensive income attributable to non-controlling interests — — — 480 — 480 Comprehensive income (loss) attributable to CBRE Group, Inc. $ 228,667 $ 234,794 $ 227,350 $ (66,800 ) $ (560,066 ) $ 63,945 Three Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 201,777 $ 202,422 $ 205,012 $ 89,429 $ (495,632 ) $ 203,008 Other comprehensive income: Foreign currency translation gain — — — 88,649 — 88,649 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 1,380 — — — 1,380 Unrealized losses on interest rate swaps, net — (217 ) — — — (217 ) Unrealized holding gains on available for sale debt securities, net — — 896 81 — 977 Other, net 3 — (13 ) — — (10 ) Total other comprehensive income 3 1,163 883 88,730 — 90,779 Comprehensive income 201,780 203,585 205,895 178,159 (495,632 ) 293,787 Less: Comprehensive income attributable to non-controlling interests — — — 1,390 — 1,390 Comprehensive income attributable to CBRE Group, Inc. $ 201,780 $ 203,585 $ 205,895 $ 176,769 $ (495,632 ) $ 292,397 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. Condensed Consolidating Statements of Comprehensive Income (Loss) Six Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 378,955 $ 388,525 $ 399,815 $ 159,855 $ (947,394 ) $ 379,756 Other comprehensive income (loss): Foreign currency translation loss — — — (99,894 ) — (99,894 ) Adoption of Accounting Standards Update 2016-01, net — — (3,964 ) — — (3,964 ) Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 1,383 — — — 1,383 Unrealized gains on interest rate swaps, net — 817 — — — 817 Unrealized holding losses on available for sale debt securities, net — — (627 ) — — (627 ) Other, net — — 20 5,508 — 5,528 Total other comprehensive income (loss) — 2,200 (4,571 ) (94,386 ) — (96,757 ) Comprehensive income 378,955 390,725 395,244 65,469 (947,394 ) 282,999 Less: Comprehensive income attributable to non-controlling interests — — — 122 — 122 Comprehensive income attributable to CBRE Group, Inc. $ 378,955 $ 390,725 $ 395,244 $ 65,347 $ (947,394 ) $ 282,877 Six Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 338,797 $ 339,267 $ 344,076 $ 136,854 $ (817,060 ) $ 341,934 Other comprehensive (loss) income: Foreign currency translation gain — — — 139,837 — 139,837 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 2,888 — — — 2,888 Unrealized gains on interest rate swaps, net — 77 — — — 77 Unrealized holding gains on available for sale debt securities, net — — 1,725 175 — 1,900 Other, net (2 ) — (14 ) — — (16 ) Total other comprehensive (loss) income (2 ) 2,965 1,711 140,012 — 144,686 Comprehensive income 338,795 342,232 345,787 276,866 (817,060 ) 486,620 Less: Comprehensive income attributable to non-controlling interests — — — 3,317 — 3,317 Comprehensive income attributable to CBRE Group, Inc. $ 338,795 $ 342,232 $ 345,787 $ 273,549 $ (817,060 ) $ 483,303 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Consolidated Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 51,094 $ 2,234 $ (56,141 ) $ (89,249 ) $ (92,062 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (65,676 ) (41,806 ) (107,482 ) Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired — — (259,338 ) (5,364 ) (264,702 ) Contributions to unconsolidated subsidiaries — — (17,030 ) (4,012 ) (21,042 ) Distributions from unconsolidated subsidiaries — — 24,986 3,249 28,235 Net proceeds from disposition of real estate held for investment — — − 14,174 14,174 Purchase of equity securities — — (13,718 ) — (13,718 ) Proceeds from sale of equity securities — — 8,889 — 8,889 Purchase of available for sale debt securities — — (18,723 ) — (18,723 ) Proceeds from the sale of available for sale debt securities — — 4,121 — 4,121 Other investing activities, net — — (6,454 ) 70 (6,384 ) Net cash used in investing activities — — (342,943 ) (33,689 ) (376,632 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from senior term loans — 550,000 — — 550,000 Proceeds from revolving credit facility — 2,000,000 — — 2,000,000 Repayment of revolving credit facility — (1,402,000 ) — — (1,402,000 ) Repayment of 5.00% senior notes (including premium) — (820,000 ) — — (820,000 ) Proceeds from notes payable on real estate held for investment — — — 52 52 Repayment of notes payable on real estate held for investment — — — (13,028 ) (13,028 ) Proceeds from notes payable on real estate held for sale and under development — — — 1,101 1,101 Repayment of notes payable on real estate held for sale and under development — — — (2,991 ) (2,991 ) Acquisition of businesses (cash (paid) received for acquisitions more than three months after purchase date) — — (13,166 ) 1,983 (11,183 ) Repayment of debt assumed in acquisition of FacilitySource — — (26,295 ) — (26,295 ) Units repurchased for payment of taxes on equity awards (4,630 ) — — — (4,630 ) Non-controlling interest contributions — — — 2,744 2,744 Non-controlling interest distributions — — — (7,652 ) (7,652 ) (Increase) decrease in intercompany receivables, net (46,622 ) (337,235 ) 405,196 (21,339 ) — Other financing activities, net 158 (199 ) — (35 ) (76 ) Net cash (used in) provided by financing activities (51,094 ) (9,434 ) 365,735 (39,165 ) 266,042 Effect of currency exchange rate changes on cash and cash equivalents and restricted cash — — — (18,821 ) (18,821 ) NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH — (7,200 ) (33,349 ) (180,924 ) (221,473 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD 7 15,604 114,143 695,065 824,819 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD $ 7 $ 8,404 $ 80,794 $ 514,141 $ 603,346 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 58,814 $ — $ 523 $ 59,337 Income taxes, net $ — $ — $ 77,076 $ 82,757 $ 159,833 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2017 (As Adjusted) (1) Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Consolidated Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 49,436 $ 16,131 $ (162,159 ) $ (20,845 ) $ (117,437 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (39,925 ) (19,938 ) (59,863 ) Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired — — (20,584 ) (4,742 ) (25,326 ) Contributions to unconsolidated subsidiaries — — (23,752 ) (8,908 ) (32,660 ) Distributions from unconsolidated subsidiaries — — 19,333 4,637 23,970 Purchase of equity securities — — (9,280 ) — (9,280 ) Proceeds from sale of equity securities — — 9,428 — 9,428 Purchase of available for sale debt securities — — (10,454 ) — (10,454 ) Proceeds from the sale of available for sale debt securities — — 7,849 — 7,849 Other investing activities, net — — 2,486 (207 ) 2,279 Net cash used in investing activities — — (64,899 ) (29,158 ) (94,057 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving credit facility — 911,000 — — 911,000 Repayment of revolving credit facility — (911,000 ) — — (911,000 ) Proceeds from notes payable on real estate held for sale and under development — — — 2,137 2,137 Repayment of notes payable on real estate held for sale and under development — — — (9,189 ) (9,189 ) Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) — — (11,196 ) (3,930 ) (15,126 ) Units repurchased for payment of taxes on equity awards (1,900 ) — — — (1,900 ) Non-controlling interest contributions — — — 1,941 1,941 Non-controlling interest distributions — — — (3,904 ) (3,904 ) (Increase) decrease in intercompany receivables, net (47,896 ) (20,114 ) 46,854 21,156 — Other financing activities, net 360 — (3,145 ) (881 ) (3,666 ) Net cash (used in) provided by financing activities (49,436 ) (20,114 ) 32,513 7,330 (29,707 ) Effect of currency exchange rate changes on cash and cash equivalents and restricted cash — — — 20,190 20,190 NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH — (3,983 ) (194,545 ) (22,483 ) (221,011 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD 7 16,889 271,088 543,428 831,412 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD $ 7 $ 12,906 $ 76,543 $ 520,945 $ 610,401 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 59,446 $ — $ 44 $ 59,490 Income taxes, net $ — $ — $ 82,017 $ 81,868 $ 163,885 (1) We adopted new revenue recognition guidance in the first quarter of 2018. Certain restatements have been made to the 2017 financial statements to conform with the 2018 presentation. See Notes 2 and 3 for more information. |
Significant Accounting Polici36
Significant Accounting Policies Update - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | |||
U.S. corporate tax rate | 35.00% | ||
Scenario Plan [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
U.S. corporate tax rate | 21.00% | ||
Wholly Owned Property [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership interest in property | 100.00% | ||
Commercial Real Estate [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership interest in property | 0.00% |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2016 | |
New Accounting Pronouncement Early Adoption [Line Items] | ||||||||
Accumulated earnings | $ 3,820,420 | $ 3,820,420 | $ 3,443,007 | |||||
Cumulative adjustment to accumulated earnings | $ 4,950,192 | $ 4,308,449 | 9,480,190 | $ 8,241,741 | ||||
Distributions from equity method investments reclassified from cash flows from investing activities to cash flows from operating activities | $ 131,395 | 85,952 | ||||||
5.00% Senior Notes [Member] | ||||||||
New Accounting Pronouncement Early Adoption [Line Items] | ||||||||
Debt Instrument Interest Rate Stated Percentage | 5.00% | 5.00% | ||||||
Accounting Standards Update 2016-01 | ||||||||
New Accounting Pronouncement Early Adoption [Line Items] | ||||||||
Cumulative adjustment to accumulated earnings | $ 4,000 | |||||||
Accounting Standards Update 2016-15 | ||||||||
New Accounting Pronouncement Early Adoption [Line Items] | ||||||||
Distributions from equity method investments reclassified from cash flows from investing activities to cash flows from operating activities | 73,000 | |||||||
Cash paid for acquisitions reclassified from cash used in investing activities to cash used in financing activities | $ 15,100 | |||||||
Accounting Standards Update 2016-15 | 5.00% Senior Notes [Member] | ||||||||
New Accounting Pronouncement Early Adoption [Line Items] | ||||||||
Deb instrument, redemption premium | $ 20,000 | $ 20,000 | ||||||
Debt Instrument Interest Rate Stated Percentage | 5.00% | 5.00% | ||||||
Adoption of new revenue recognition guidance [Member] | ASU 2014-09 [Member] | ||||||||
New Accounting Pronouncement Early Adoption [Line Items] | ||||||||
Accumulated earnings | 94,622 | $ 87,900 | ||||||
Cumulative adjustment to accumulated earnings | $ 5,600 | $ 1,100 |
New Accounting Pronouncements38
New Accounting Pronouncements - Schedule of Adoption of New Revenue Recognition Guidance on Financial Statement - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2016 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Receivables | $ 3,324,522 | $ 3,112,289 | |
Contract assets | 109,272 | 273,053 | |
Total current assets | 6,106,710 | 5,630,584 | |
Other assets, net | 536,046 | 479,474 | |
Total assets | 12,535,457 | 11,718,396 | |
Accounts payable and accrued expenses | 1,642,030 | 1,573,672 | |
Compensation and employee benefits payable | 870,626 | 904,434 | |
Accrued bonus and profit sharing | 629,044 | 1,078,345 | |
Contract liabilities | 76,216 | 100,615 | |
Total current liabilities | 5,381,135 | 4,712,944 | |
Deferred tax liabilities, net | 187,062 | 147,218 | |
Total liabilities | 8,018,586 | 7,543,782 | |
Accumulated earnings | 3,820,420 | 3,443,007 | |
Accumulated other comprehensive loss | (648,492) | (552,414) | |
Total CBRE Group, Inc. stockholders' equity | 4,453,577 | 4,114,496 | |
Total liabilities and equity | $ 12,535,457 | 11,718,396 | |
As Reported [Member] | ASU 2014-09 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Receivables | 3,207,285 | ||
Total current assets | 5,452,527 | ||
Other assets, net | 422,965 | ||
Total assets | 11,483,830 | ||
Accounts payable and accrued expenses | 1,674,287 | ||
Compensation and employee benefits payable | 803,504 | ||
Accrued bonus and profit sharing | 1,072,976 | ||
Total current liabilities | 4,606,645 | ||
Deferred tax liabilities, net | 114,017 | ||
Total liabilities | 7,404,282 | ||
Accumulated earnings | 3,348,385 | ||
Accumulated other comprehensive loss | (552,858) | ||
Total CBRE Group, Inc. stockholders' equity | 4,019,430 | ||
Total liabilities and equity | 11,483,830 | ||
Adoption of New Revenue Recognition Guidance [Member] | ASU 2014-09 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Receivables | (94,996) | ||
Contract assets | 273,053 | ||
Total current assets | 178,057 | ||
Other assets, net | 56,509 | ||
Total assets | 234,566 | ||
Accounts payable and accrued expenses | (100,615) | ||
Compensation and employee benefits payable | 100,930 | ||
Accrued bonus and profit sharing | 5,369 | ||
Contract liabilities | 100,615 | ||
Total current liabilities | 106,299 | ||
Deferred tax liabilities, net | 33,201 | ||
Total liabilities | 139,500 | ||
Accumulated earnings | 94,622 | $ 87,900 | |
Accumulated other comprehensive loss | 444 | ||
Total CBRE Group, Inc. stockholders' equity | 95,066 | ||
Total liabilities and equity | $ 234,566 |
New Accounting Pronouncements39
New Accounting Pronouncements - Schedule of Adoption of New Revenue Recognition Guidance on Financial Statement - Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Revenue | $ 5,111,434 | $ 4,439,571 | $ 9,785,386 | $ 8,490,537 |
Cost of services | 3,958,748 | 3,409,540 | 7,578,709 | 6,556,017 |
Operating, administrative and other | 826,282 | 712,615 | 1,558,517 | 1,319,241 |
Operating income | 225,316 | 228,328 | 438,925 | 433,539 |
Income before provision for income taxes | 299,950 | 272,895 | 496,239 | 465,640 |
Provision for income taxes | 70,319 | 69,887 | 116,483 | 123,706 |
Net income | 229,631 | 203,008 | 379,756 | 341,934 |
Net income attributable to CBRE Group, Inc. | $ 228,667 | $ 201,777 | $ 378,955 | $ 338,797 |
Basic income per share attributable to CBRE Group, Inc. shareholders | $ 0.67 | $ 0.60 | $ 1.12 | $ 1.01 |
Diluted income per share attributable to CBRE Group, Inc. shareholders | $ 0.67 | $ 0.59 | $ 1.10 | $ 1 |
As Reported [Member] | ASU 2014-09 [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Revenue | $ 3,342,215 | $ 6,323,419 | ||
Cost of services | 2,318,562 | 4,405,641 | ||
Operating, administrative and other | 712,374 | 1,318,605 | ||
Operating income | 222,191 | 417,433 | ||
Income before provision for income taxes | 266,758 | 449,534 | ||
Provision for income taxes | 68,362 | 119,635 | ||
Net income | 198,396 | 329,899 | ||
Net income attributable to CBRE Group, Inc. | $ 197,165 | $ 326,762 | ||
Basic income per share attributable to CBRE Group, Inc. shareholders | $ 0.59 | $ 0.97 | ||
Diluted income per share attributable to CBRE Group, Inc. shareholders | $ 0.58 | $ 0.96 | ||
Adoption of New Revenue Recognition Guidance [Member] | ASU 2014-09 [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Revenue | $ 1,097,356 | $ 2,167,118 | ||
Cost of services | 1,090,978 | 2,150,376 | ||
Operating, administrative and other | 241 | 636 | ||
Operating income | 6,137 | 16,106 | ||
Income before provision for income taxes | 6,137 | 16,106 | ||
Provision for income taxes | 1,525 | 4,071 | ||
Net income | 4,612 | 12,035 | ||
Net income attributable to CBRE Group, Inc. | $ 4,612 | $ 12,035 | ||
Basic income per share attributable to CBRE Group, Inc. shareholders | $ 0.01 | $ 0.04 | ||
Diluted income per share attributable to CBRE Group, Inc. shareholders | $ 0.01 | $ 0.04 |
FacilitySource Acquisition - Ad
FacilitySource Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 12, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||||
Revenue | $ 5,111,434 | $ 4,439,571 | $ 9,785,386 | $ 8,490,537 | |
Operating loss | 225,316 | 228,328 | 438,925 | 433,539 | |
Net income attributable to CBRE Group, Inc. | 228,667 | 201,777 | $ 378,955 | 338,797 | |
Direct transaction and integration costs | $ 15,408 | $ 27,351 | |||
FacilitySource [Member] | |||||
Business Acquisition [Line Items] | |||||
Date of business purchase agreement | Jun. 12, 2018 | ||||
Estimated purchase price | $ 265,465 | ||||
Purchase price payable in cash | $ 262,000 | ||||
Revenue | 12,600 | $ 12,600 | |||
Operating loss | (200) | (200) | |||
Net income attributable to CBRE Group, Inc. | (200) | (200) | |||
Direct transaction and integration costs | 200 | 200 | |||
Depreciation and amortization expense | $ 600 | 600 | |||
Removal of direct costs | 200 | ||||
Removal of tax impact | $ 200 | ||||
Blocker Corp [Member] | |||||
Business Acquisition [Line Items] | |||||
Blocker Units purchase from Stockholders | 1,686,013 |
FacilitySource Acquisition - Su
FacilitySource Acquisition - Summary of Excess Purchase Price Over Estimated Fair Value of Net Assets Acquired (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 12, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Excess purchase price over estimated fair value of net assets acquired | $ 3,407,169 | $ 3,254,740 | |
FacilitySource [Member] | |||
Business Acquisition [Line Items] | |||
Estimated purchase price | $ 265,465 | ||
Less: Estimated fair value of net assets acquired (see table below) | (69,719) | ||
Excess purchase price over estimated fair value of net assets acquired | $ 195,746 |
FacilitySource Acquisition - 42
FacilitySource Acquisition - Summary of Aggregate Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - FacilitySource [Member] $ in Thousands | Jun. 12, 2018USD ($) |
Assets Acquired: | |
Cash and cash equivalents | $ 2,627 |
Receivables, net | 37,902 |
Prepaid expenses | 477 |
Property and equipment | 60,530 |
Other intangible assets | 89,000 |
Other assets | 114 |
Total assets acquired | 190,650 |
Liabilities Assumed: | |
Accounts payable and accrued expenses | 47,663 |
Compensation and employee benefits payable | 1,800 |
Accrued bonus and profit sharing | 5,036 |
Line of credit and term loan | 26,295 |
Deferred tax liability | 39,009 |
Other liabilities | 1,128 |
Total liabilities assumed | 120,931 |
Estimated Fair Value of Net Assets Acquired | $ 69,719 |
FacilitySource Acquisition - 43
FacilitySource Acquisition - Summary of Preliminary Estimate of Amortizable Intangible Assets and Depreciable Computer Software Acquired (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 12, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Other intangible assets, accumulated amortization | $ 1,106,169 | $ 1,000,738 | |
Property and equipment, net | $ 705,469 | $ 617,739 | |
FacilitySource [Member] | |||
Business Acquisition [Line Items] | |||
Weighted Average Amortization Period, Intangibles | 14 years 2 months 19 days | ||
Amount Assigned at Acquisition Date, Total amortizable intangible assets acquired | $ 89,000 | ||
Amount Assigned at Acquisition Date, Property and Equipment | 60,530 | ||
Other intangible assets, accumulated amortization | $ 346 | ||
Total amortizable intangible assets acquired, Net Carrying Value | $ 88,654 | ||
FacilitySource [Member] | Trade names [Member] | |||
Business Acquisition [Line Items] | |||
Weighted Average Amortization Period, Intangibles | 20 years | ||
Amount Assigned at Acquisition Date, Total amortizable intangible assets acquired | 50,400 | ||
Other intangible assets, accumulated amortization | $ 105 | ||
Total amortizable intangible assets acquired, Net Carrying Value | $ 50,295 | ||
FacilitySource [Member] | Customer relationships [Member] | |||
Business Acquisition [Line Items] | |||
Weighted Average Amortization Period, Intangibles | 6 years 8 months 1 day | ||
Amount Assigned at Acquisition Date, Total amortizable intangible assets acquired | 38,600 | ||
Other intangible assets, accumulated amortization | $ 241 | ||
Total amortizable intangible assets acquired, Net Carrying Value | $ 38,359 | ||
FacilitySource [Member] | Computer software [Member] | |||
Business Acquisition [Line Items] | |||
Weighted Average Depreciation Period, Property and Equipment | 10 years | ||
Amount Assigned at Acquisition Date, Property and Equipment | $ 57,650 | ||
Accumulated Amortization and Depreciation, Property and Equipment | $ 240 | ||
Property and equipment, net | $ 57,410 |
FacilitySource Acquisition - Ce
FacilitySource Acquisition - Certain Adjustments to Unaudited Pro Forma Results (Detail) - FacilitySource [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Depreciation expense | $ 1,201 | $ 1,235 | $ 2,642 | $ 2,469 |
Amortization expense | 1,731 | 2,078 | 3,809 | 4,155 |
Interest expense | $ 1,224 | $ 1,525 | $ 2,748 | $ 3,049 |
FacilitySource Acquisition - 45
FacilitySource Acquisition - Summary of Pro Forma Results Prepared for Comparative Purposes (Detail) - FacilitySource [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 5,141,339 | $ 4,476,952 | $ 9,852,160 | $ 8,565,300 |
Operating income | 218,988 | 220,565 | 424,689 | 418,015 |
Net income attributable to CBRE Group, Inc. | $ 222,941 | $ 195,874 | $ 366,083 | $ 326,993 |
Basic income per share: | ||||
Net income per share attributable to CBRE Group, Inc. | $ 0.66 | $ 0.58 | $ 1.08 | $ 0.97 |
Weighted average shares outstanding for basic income per share | 339,081,556 | 336,975,149 | 338,986,354 | 336,941,681 |
Diluted income per share: | ||||
Net income per share attributable to CBRE Group, Inc. | $ 0.65 | $ 0.57 | $ 1.07 | $ 0.96 |
Weighted average shares outstanding for diluted income per share | 343,471,513 | 340,882,603 | 343,031,189 | 340,214,246 |
Warehouse Receivables & Wareh46
Warehouse Receivables & Warehouse Lines of Credit - Additional Information (Detail) - Warehouse Agreement Borrowings [Member] | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |
Period of repayment for warehouse lines of credit | 1 month |
Lines of credit principal outstanding | $ 1,500,000,000 |
Warehouse Receivables & Wareh47
Warehouse Receivables & Warehouse Lines of Credit - Schedule of Warehouse Receivables (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | ||
Beginning balance at December 31, 2017 | $ 928,038 | |
Origination of mortgage loans | 7,552,229 | $ 6,848,102 |
Gains (premiums on loan sales) | 25,890 | |
Proceeds from sale of mortgage loans: | ||
Sale of mortgage loans | (6,993,724) | |
Cash collections of premiums on loan sales | (25,890) | |
Proceeds from sale of mortgage loans | (7,019,614) | $ (7,071,928) |
Net increase in mortgage servicing rights included in warehouse receivables | 1,781 | |
Ending balance at June 30, 2018 | $ 1,488,324 |
Warehouse Receivables & Wareh48
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Feb. 01, 2018 | Jan. 27, 2018 | Jan. 09, 2018 | |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Carrying Value | $ 1,471,591,000 | $ 910,766,000 | |||
Warehouse Agreement Borrowings [Member] | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Maximum Facility Size | 2,300,000,000 | 3,000,000,000 | |||
Carrying Value | $ 1,471,591,000 | 910,766,000 | |||
Warehouse Agreement Borrowings [Member] | JP Morgan [Member] | Pricing at daily one-month LIBOR plus 1.45%, maturing October 23, 2018 [Member] | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Current Maturity | Oct. 23, 2018 | ||||
Maximum Facility Size | $ 1,000,000,000 | 1,000,000,000 | |||
Carrying Value | $ 725,150,000 | $ 192,180,000 | |||
Line of credit over LIBOR rate | 1.45% | 1.45% | |||
Warehouse Agreement Borrowings [Member] | JP Morgan [Member] | Pricing at daily one-month LIBOR plus 2.75%, maturing October 23, 2018 [Member] | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Current Maturity | Oct. 23, 2018 | ||||
Maximum Facility Size | $ 25,000,000 | $ 25,000,000 | |||
Carrying Value | $ 5,800,000 | ||||
Line of credit over LIBOR rate | 2.75% | 2.75% | |||
Warehouse Agreement Borrowings [Member] | Fannie Mae ASAP Program [Member] | Pricing at daily one-month LIBOR plus 1.35%, with a LIBOR floor of 0.35%, Cancelable anytime [Member] | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Current Maturity | Cancelable anytime | ||||
Maximum Facility Size | $ 450,000,000 | $ 450,000,000 | |||
Carrying Value | $ 15,338,000 | $ 205,827,000 | |||
Line of credit over LIBOR rate | 1.35% | 1.35% | |||
Line of credit, LIBOR floor rate | 0.35% | 0.35% | |||
Warehouse Agreement Borrowings [Member] | TD Bank [Member] | Pricing at daily one-month LIBOR plus 1.20%, maturing June 30, 2019 [Member] | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Current Maturity | Jun. 30, 2019 | ||||
Maximum Facility Size | $ 400,000,000 | $ 800,000,000 | $ 400,000,000 | ||
Carrying Value | $ 366,043,000 | $ 225,416,000 | |||
Line of credit over LIBOR rate | 1.20% | 1.20% | |||
Warehouse Agreement Borrowings [Member] | Bank of America (BofA) [Member] | Pricing at daily one-month LIBOR plus 1.40%, maturing September 4, 2018 [Member] | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Current Maturity | Sep. 4, 2018 | ||||
Maximum Facility Size | $ 225,000,000 | $ 337,500,000 | $ 225,000,000 | ||
Carrying Value | $ 225,303,000 | $ 130,443,000 | |||
Line of credit over LIBOR rate | 1.40% | 1.40% | |||
Warehouse Agreement Borrowings [Member] | Capital One [Member] | Pricing at daily one-month LIBOR plus 1.40%, maturing July 27, 2018 [Member] | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Current Maturity | Jul. 27, 2018 | ||||
Maximum Facility Size | $ 200,000,000 | $ 387,500,000 | $ 200,000,000 | ||
Carrying Value | $ 139,757,000 | $ 151,100,000 | |||
Line of credit over LIBOR rate | 1.40% | 1.40% |
Warehouse Receivables & Wareh49
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Parenthetical) (Detail) - Warehouse Agreement Borrowings [Member] - USD ($) | Jul. 31, 2018 | Oct. 01, 2018 | Aug. 18, 2018 | Jul. 02, 2018 | Jun. 30, 2018 | Feb. 01, 2018 | Jan. 27, 2018 | Jan. 09, 2018 | Dec. 31, 2017 |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||
Maximum Facility Size | $ 2,300,000,000 | $ 3,000,000,000 | |||||||
TD Bank [Member] | Pricing at daily one-month LIBOR plus 1.20%, maturing June 30, 2019 [Member] | |||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||
Maximum Facility Size | 400,000,000 | $ 400,000,000 | 800,000,000 | ||||||
TD Bank [Member] | Subsequent Event [Member] | Pricing at daily one-month LIBOR plus 1.20%, maturing June 30, 2019 [Member] | |||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||
Maximum Facility Size | $ 800,000,000 | ||||||||
Bank of America (BofA) [Member] | Pricing at daily one-month LIBOR plus 1.40%, maturing September 4, 2018 [Member] | |||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||
Maximum Facility Size | 225,000,000 | $ 225,000,000 | 337,500,000 | ||||||
Bank of America (BofA) [Member] | Pricing at daily one-month LIBOR plus 1.40%, maturing September 4, 2018 [Member] | Scenario Forecast [Member] | |||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||
Maximum Facility Size | $ 225,000,000 | ||||||||
Bank of America (BofA) [Member] | Subsequent Event [Member] | Pricing at daily one-month LIBOR plus 1.40%, maturing September 4, 2018 [Member] | |||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||
Maximum Facility Size | $ 337,500,000 | ||||||||
Capital One [Member] | Pricing at daily one-month LIBOR plus 1.40%, maturing July 27, 2018 [Member] | |||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||
Maximum Facility Size | $ 200,000,000 | $ 200,000,000 | $ 387,500,000 | ||||||
Capital One [Member] | Pricing at daily one-month LIBOR plus 1.40%, maturing July 27, 2018 [Member] | Scenario Forecast [Member] | |||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||
Maximum Facility Size | $ 200,000,000 | ||||||||
Capital One [Member] | Subsequent Event [Member] | Pricing at daily one-month LIBOR plus 1.40%, maturing July 27, 2018 [Member] | |||||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||||
Maximum Facility Size | $ 375,000,000 | ||||||||
Extended maturity period | 1 year |
Variable Interest Entities (V50
Variable Interest Entities (VIEs) - Schedule of Maximum Exposure to Loss (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 233,889 | $ 238,001 |
Co-investment commitments | 36,500 | |
Other current assets | 265,268 | 227,421 |
Non-Consolidated Variable Interest Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | 25,160 | 26,273 |
Co-investment commitments | 4,266 | 2,364 |
Other current assets | 3,475 | 3,401 |
Maximum exposure to loss | $ 32,901 | $ 32,038 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value measurements assets, significant transfers from level 1 to level 2 | $ 0 | $ 0 | |
Fair value measurements assets, significant transfers from level 2 to level 1 | 0 | 0 | |
Fair value measurements liabilities, significant transfers from level 1 to level 2 | 0 | 0 | |
Fair value measurements liabilities, significant transfers from level 2 to level 1 | 0 | $ 0 | |
Senior notes | $ 791,700,000 | ||
4.875% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated fair value of senior loans | $ 622,500,000 | $ 645,700,000 | |
Interest rate of long-term debt | 4.875% | 4.875% | |
Senior notes | $ 592,400,000 | $ 592,000,000 | |
5.25% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated fair value of senior loans | $ 447,000,000 | $ 468,000,000 | |
Interest rate of long-term debt | 5.25% | 5.25% | |
Senior notes | $ 422,600,000 | $ 422,400,000 | |
5.00% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated fair value of senior loans | $ 823,800,000 | ||
Interest rate of long-term debt | 5.00% | 5.00% | |
Senior notes | $ 791,700,000 | ||
Redemption details | In March 2018, we redeemed our 5.00% senior notes in full | ||
Senior term loans [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated fair value of senior loans | $ 742,500,000 | 199,900,000 | |
Senior term loans | $ 743,700,000 | $ 193,500,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warehouse receivables | $ 1,488,324 | $ 928,038 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 47,858 | 34,687 |
Equity securities | 140,035 | 133,595 |
Warehouse receivables | 1,488,324 | 928,038 |
Total assets at fair value | 1,676,217 | 1,096,320 |
Interest rate swaps | 2,091 | 4,766 |
Securities sold, not yet purchased | 3,556 | 3,431 |
Total liabilities at fair value | 5,647 | 8,252 |
Foreign currency exchange forward contracts | 55 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 3,626 | 3,820 |
Equity securities | 140,035 | 133,595 |
Total assets at fair value | 143,661 | 137,415 |
Securities sold, not yet purchased | 3,556 | 3,431 |
Total liabilities at fair value | 3,556 | 3,431 |
Recurring [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 44,232 | 30,867 |
Warehouse receivables | 1,488,324 | 928,038 |
Total assets at fair value | 1,532,556 | 958,905 |
Interest rate swaps | 2,091 | 4,766 |
Total liabilities at fair value | 2,091 | 4,821 |
Foreign currency exchange forward contracts | 55 | |
Recurring [Member] | U.S. treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 3,626 | 3,820 |
Recurring [Member] | U.S. treasury securities [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 3,626 | 3,820 |
Recurring [Member] | Debt securities issued by U.S. federal agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 10,134 | 4,901 |
Recurring [Member] | Debt securities issued by U.S. federal agencies [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 10,134 | 4,901 |
Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 27,845 | 20,023 |
Recurring [Member] | Corporate debt securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 27,845 | 20,023 |
Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 3,965 | 3,577 |
Recurring [Member] | Asset-backed securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 3,965 | 3,577 |
Recurring [Member] | Collateralized mortgage obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 2,288 | 2,366 |
Recurring [Member] | Collateralized mortgage obligations [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | $ 2,288 | $ 2,366 |
Investments In Unconsolidated53
Investments In Unconsolidated Subsidiaries - Additional information (Detail) - Maximum [Member] | Jun. 30, 2018 |
Global Investment Management [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 5.00% |
Development Services [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 10.00% |
Other [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 50.00% |
Investments in Unconsolidated54
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Financial Information of Equity Method Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Revenue | $ 445,030 | $ 309,529 | $ 788,229 | $ 624,064 |
Operating income | 236,181 | 242,506 | 372,389 | 280,724 |
Net income | 161,828 | 221,872 | 255,824 | 244,207 |
Global Investment Management [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Revenue | 361,317 | 237,907 | 625,287 | 505,058 |
Operating income | 206,206 | 76,410 | 277,362 | 91,888 |
Net income | 138,954 | 60,307 | 173,291 | 64,397 |
Development Services [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Revenue | 31,329 | 27,477 | 54,005 | 49,003 |
Operating income | 24,560 | 157,296 | 83,137 | 177,857 |
Net income | 17,117 | 150,055 | 70,313 | 166,152 |
Other [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Revenue | 52,384 | 44,145 | 108,937 | 70,003 |
Operating income | 5,415 | 8,800 | 11,890 | 10,979 |
Net income | $ 5,757 | $ 11,510 | $ 12,220 | $ 13,658 |
Long-Term Debt and Short-Term55
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,778,397 | $ 2,022,598 |
Less: current maturities of long-term debt | (1,466) | (8) |
Less: unamortized debt issuance costs | (14,046) | (22,987) |
Total long-term debt, net of current maturities | 1,762,885 | 1,999,603 |
Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 5,711 | 8 |
2.51% to 3.07% Senior Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 750,000 | 200,000 |
4.875% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 596,460 | 596,273 |
5.25% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 426,226 | 426,317 |
5.00% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 800,000 |
Long-Term Debt and Short-Term56
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Senior secured term loans [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt, end | Dec. 31, 2022 | Dec. 31, 2022 |
Senior secured term loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 2.51% | 2.51% |
Senior secured term loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 3.07% | 3.07% |
4.875% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 4.875% | 4.875% |
Due date of long-term debt | 2,026 | 2,026 |
5.25% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 5.25% | 5.25% |
Due date of long-term debt | 2,025 | 2,025 |
5.00% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 5.00% | 5.00% |
Redemption date | Mar. 15, 2018 | Mar. 15, 2018 |
Long-Term Debt and Short-Term57
Long-Term Debt and Short-Term Borrowings - Long-Term Debt - Additional Information (Detail) - USD ($) | Oct. 31, 2017 | Mar. 14, 2013 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Proceeds from revolving credit facility | $ 2,000,000,000 | $ 911,000,000 | |||
Write-off of financing costs on extinguished debt | $ 27,982,000 | ||||
Senior notes | $ 791,700,000 | ||||
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 | 16.97% | ||||
Leverage ratio of total debt less available cash to EBITDA expressed in percentage | 1.05% | ||||
2017 Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Amounts available to borrow under Credit Agreement | $ 2,800,000,000 | ||||
Revolving credit facility maturity date | Oct. 31, 2022 | ||||
5.00% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount issued | $ 800,000,000 | ||||
Interest rate of long-term debt | 5.00% | 5.00% | |||
Redemption details | In March 2018, we redeemed our 5.00% senior notes in full | ||||
Redemption date | Mar. 15, 2018 | Mar. 15, 2018 | |||
Senior notes | $ 791,700,000 | ||||
5.00% Senior Notes [Member] | Redemption on March 15, 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption charges | 28,000,000 | ||||
Senior notes, redemption premium | 20,000,000 | ||||
Write-off of financing costs on extinguished debt | $ 8,000,000 | ||||
5.00% senior notes due March 15, 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | Mar. 15, 2023 | ||||
Interest rate of long-term debt | 5.00% | ||||
Accrued interest percentage per year | 5.00% | ||||
Debt Instrument, Frequency of Periodic Payment | semi-annually | ||||
Redemption details | The 5.00% senior notes were redeemable at our option, in whole or in part, on March 15, 2018 at a redemption price of 102.5% of the principal amount on that date. We redeemed these notes in full on March 15, 2018 and incurred charges of $28.0 million, including a premium of $20.0 million and the write-off of $8.0 million of unamortized deferred financing costs. We funded this redemption with $550.0 million of borrowings from our tranche A term loan facility and borrowings from our revolving credit facility under our 2017 Credit Agreement. | ||||
5.00% senior notes due March 15, 2023 [Member] | Redemption on March 15, 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage | 102.50% | ||||
4.875% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate of long-term debt | 4.875% | 4.875% | |||
Senior notes | $ 592,400,000 | $ 592,000,000 | |||
5.25% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate of long-term debt | 5.25% | 5.25% | |||
Senior notes | $ 422,600,000 | $ 422,400,000 | |||
Revolving credit facility [Member] | 2017 Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from revolving credit facility | $ 83,000,000 | ||||
Tranche A term loan facility [Member] | 2017 Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from revolving credit facility | $ 200,000,000 | ||||
Amounts available to borrow under Credit Agreement | $ 750,000,000 | ||||
Maximum leverage ratio | 250.00% | ||||
Revolving credit facility maturity date | Oct. 31, 2022 | ||||
Tranche A term loan facility [Member] | 5.00% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount issued | $ 550,000,000 |
Long-Term Debt and Short-Term58
Long-Term Debt and Short-Term Borrowings - Revolving Credit Facility - Additional Information (Detail) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 598,000,000 | |
Letters of credit outstanding amount | 71,200,000 | |
2017 Credit Agreement [Member] | Revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | 598,000,000 | $ 0 |
Letters of credit outstanding amount | $ 2,000,000 | $ 2,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 71,200,000 | |
Accrued loan loss | 33,900,000 | $ 32,900,000 |
Assets available for recourse | 734,000,000 | |
Warehouse receivables | $ 491,100,000 | |
Letters of credit expiration date | 2019-06 | |
Guarantees total | $ 56,300,000 | |
Commitments to investment in future real estate investment | 36,500,000 | |
Commitments to investment in unconsolidated real estate subsidiary | $ 23,500,000 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Co-investments typically range | 2.00% | |
Funded loans subject to loss sharing arrangements [Member] | ||
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | $ 21,300,000,000 | |
Letters of credit outstanding | 60,000,000 | 58,000,000 |
SBL Program [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | 5,000,000 | $ 5,000,000 |
Funded loans not subject to loss sharing arrangements [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 65,000,000 |
Income Per Share Information -
Income Per Share Information - Calculations of Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic Income Per Share | ||||
Net income attributable to CBRE Group, Inc. shareholders | $ 228,667 | $ 201,777 | $ 378,955 | $ 338,797 |
Weighted average shares outstanding for basic income per share | 339,081,556 | 336,975,149 | 338,986,354 | 336,941,681 |
Basic income per share attributable to CBRE Group, Inc. shareholders | $ 0.67 | $ 0.60 | $ 1.12 | $ 1.01 |
Diluted Income Per Share | ||||
Net income attributable to CBRE Group, Inc. shareholders | $ 228,667 | $ 201,777 | $ 378,955 | $ 338,797 |
Weighted average shares outstanding for diluted income per share: | ||||
Weighted average shares outstanding for basic income per share | 339,081,556 | 336,975,149 | 338,986,354 | 336,941,681 |
Dilutive effect of contingently issuable shares | 4,389,957 | 3,905,498 | 4,044,050 | 3,267,556 |
Dilutive effect of stock options | 1,956 | 785 | 5,009 | |
Weighted average shares outstanding for diluted income per share | 343,471,513 | 340,882,603 | 343,031,189 | 340,214,246 |
Diluted income per share attributable to CBRE Group, Inc. shareholders | $ 0.67 | $ 0.59 | $ 1.10 | $ 1 |
Income Per Share Information 61
Income Per Share Information - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Contingently Issuable Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded in computation of diluted income per share | 75,851 | 1,317,651 | 51,946 | 2,037,886 |
Revenue from Contracts with C62
Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 4,950,192 | $ 4,308,449 | $ 9,480,190 | $ 8,241,741 |
Total revenue | 5,111,434 | 4,439,571 | 9,785,386 | 8,490,537 |
Occupier Outsourcing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 3,183,567 | 2,705,286 | 6,137,646 | 5,242,759 |
Leasing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 743,980 | 619,916 | 1,316,466 | 1,149,394 |
Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 436,600 | 434,233 | 842,168 | 788,027 |
Property Management [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 304,621 | 280,023 | 608,245 | 552,749 |
Valuation [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 138,367 | 129,768 | 264,585 | 246,223 |
Commercial Mortgage Origination [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 28,647 | 32,783 | 51,748 | 54,960 |
Total revenue | 91,167 | 71,727 | 175,360 | 134,274 |
Investment Management [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 98,947 | 92,763 | 222,637 | 182,329 |
Development Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 15,463 | 13,677 | 36,695 | 25,300 |
Loan Servicing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 43,908 | 39,872 | 85,722 | 76,282 |
Other Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 26,167 | 19,523 | 44,114 | 38,240 |
Total Out of Scope of Topic 606 Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 161,242 | 131,122 | 305,196 | 248,796 |
Americas [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 2,993,660 | 2,706,638 | 5,710,401 | 5,237,049 |
Total revenue | 3,140,427 | 2,826,923 | 5,990,651 | 5,466,129 |
Americas [Member] | Occupier Outsourcing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,923,585 | 1,742,122 | 3,717,732 | 3,406,476 |
Americas [Member] | Leasing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 536,660 | 450,208 | 936,858 | 844,073 |
Americas [Member] | Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 269,636 | 261,710 | 537,311 | 495,506 |
Americas [Member] | Property Management [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 172,343 | 161,116 | 346,171 | 322,513 |
Americas [Member] | Valuation [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 64,346 | 61,599 | 123,412 | 118,780 |
Americas [Member] | Commercial Mortgage Origination [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 27,090 | 29,883 | 48,917 | 49,701 |
Total revenue | 91,167 | 71,727 | 175,360 | 134,274 |
Americas [Member] | Loan Servicing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 41,327 | 37,190 | 80,853 | 70,724 |
Americas [Member] | Other Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 14,273 | 11,368 | 24,037 | 24,082 |
Americas [Member] | Total Out of Scope of Topic 606 Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 146,767 | 120,285 | 280,250 | 229,080 |
EMEA [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,304,817 | 1,007,484 | 2,477,960 | 1,905,478 |
Total revenue | 1,315,452 | 1,016,020 | 2,496,706 | 1,920,651 |
EMEA [Member] | Occupier Outsourcing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 995,265 | 726,890 | 1,889,082 | 1,393,584 |
EMEA [Member] | Leasing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 106,295 | 88,076 | 206,884 | 163,007 |
EMEA [Member] | Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 98,081 | 94,055 | 176,321 | 161,355 |
EMEA [Member] | Property Management [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 60,706 | 59,249 | 118,917 | 113,989 |
EMEA [Member] | Valuation [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 43,256 | 37,229 | 84,319 | 69,738 |
EMEA [Member] | Commercial Mortgage Origination [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,214 | 1,985 | 2,437 | 3,805 |
EMEA [Member] | Loan Servicing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 2,360 | 2,682 | 4,648 | 5,558 |
EMEA [Member] | Other Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 8,275 | 5,854 | 14,098 | 9,615 |
EMEA [Member] | Total Out of Scope of Topic 606 Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 10,635 | 8,536 | 18,746 | 15,173 |
Asia Pacific [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 534,360 | 484,598 | 1,027,459 | 885,702 |
Total revenue | 538,200 | 486,899 | 1,033,659 | 890,245 |
Asia Pacific [Member] | Occupier Outsourcing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 264,717 | 236,274 | 530,832 | 442,699 |
Asia Pacific [Member] | Leasing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 100,186 | 81,606 | 171,765 | 142,134 |
Asia Pacific [Member] | Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 68,883 | 78,303 | 128,118 | 130,471 |
Asia Pacific [Member] | Property Management [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 69,466 | 56,560 | 139,496 | 111,239 |
Asia Pacific [Member] | Valuation [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 30,765 | 30,940 | 56,854 | 57,705 |
Asia Pacific [Member] | Commercial Mortgage Origination [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 343 | 915 | 394 | 1,454 |
Asia Pacific [Member] | Loan Servicing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 221 | 221 | ||
Asia Pacific [Member] | Other Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 3,619 | 2,301 | 5,979 | 4,543 |
Asia Pacific [Member] | Total Out of Scope of Topic 606 Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 3,840 | 2,301 | 6,200 | 4,543 |
Global Investment Management [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 98,947 | 92,763 | 222,637 | 182,329 |
Total revenue | 98,947 | 92,763 | 222,637 | 182,329 |
Global Investment Management [Member] | Investment Management [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 98,947 | 92,763 | 222,637 | 182,329 |
Development Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 18,408 | 16,966 | 41,733 | 31,183 |
Total revenue | 18,408 | 16,966 | 41,733 | 31,183 |
Development Services [Member] | Leasing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 839 | 26 | 959 | 180 |
Development Services [Member] | Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 165 | 418 | 695 | |
Development Services [Member] | Property Management [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 2,106 | 3,098 | 3,661 | 5,008 |
Development Services [Member] | Development Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 15,463 | $ 13,677 | $ 36,695 | $ 25,300 |
Revenue from Contracts with C63
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenue From Contract With Customer [Abstract] | |||||
Contract assets | $ 169,300,000 | $ 169,300,000 | $ 330,900,000 | ||
Contract assets, current | 109,272,000 | 109,272,000 | 273,053,000 | ||
Contract assets moved to accounts receivable | (161,700,000) | ||||
Contract liabilities | 86,800,000 | 86,800,000 | 100,600,000 | ||
Contract liabilities, current | 76,216,000 | 76,216,000 | $ 100,615,000 | ||
Recognized revenue included in contract liability | 64,100,000 | ||||
Capitalized contract cost | 13,400,000 | $ 5,800,000 | 23,000,000 | $ 14,700,000 | |
Capitalized contract cost, amortization of transaction cost | 6,200,000 | 3,600,000 | 12,200,000 | 7,200,000 | |
Capitalized contract cost, impairment loss | $ 0 | $ 0 | $ 0 | $ 0 |
Segments - Summarized Financial
Segments - Summarized Financial Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 5,111,434 | $ 4,439,571 | $ 9,785,386 | $ 8,490,537 |
Adjusted EBITDA | 439,307 | 418,686 | 787,114 | 731,863 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,140,427 | 2,826,923 | 5,990,651 | 5,466,129 |
Adjusted EBITDA | 258,353 | 233,711 | 484,196 | 458,936 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,315,452 | 1,016,020 | 2,496,706 | 1,920,651 |
Adjusted EBITDA | 66,519 | 70,293 | 103,465 | 105,748 |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 538,200 | 486,899 | 1,033,659 | 890,245 |
Adjusted EBITDA | 42,861 | 44,556 | 76,741 | 67,832 |
Global Investment Management [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 98,947 | 92,763 | 222,637 | 182,329 |
Adjusted EBITDA | 15,901 | 23,910 | 45,593 | 49,769 |
Development Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 18,408 | 16,966 | 41,733 | 31,183 |
Adjusted EBITDA | $ 55,673 | $ 46,216 | $ 77,119 | $ 49,578 |
Segments - Adjusted EBITDA Calc
Segments - Adjusted EBITDA Calculation by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Net income attributable to CBRE Group, Inc. | $ 228,667 | $ 201,777 | $ 378,955 | $ 338,797 |
Depreciation and amortization | 113,399 | 100,386 | 221,564 | 194,423 |
Interest expense | 26,885 | 35,430 | 55,743 | 69,440 |
Write-off of financing costs on extinguished debt | 27,982 | |||
Provision for income taxes | 70,319 | 69,887 | 116,483 | 123,706 |
Interest income | 1,489 | 1,427 | 5,110 | 3,838 |
EBITDA | 437,781 | 406,053 | 795,617 | 722,528 |
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue | 1,526 | (2,775) | (8,503) | (18,016) |
Integration and other costs related to acquisitions | 15,408 | 27,351 | ||
Adjusted EBITDA | $ 439,307 | $ 418,686 | $ 787,114 | $ 731,863 |
Segments - Summary of Geographi
Segments - Summary of Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 5,111,434 | $ 4,439,571 | $ 9,785,386 | $ 8,490,537 |
United States [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 2,908,185 | 2,644,445 | 5,582,402 | 5,116,851 |
United Kingdom [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 634,264 | 518,988 | 1,214,781 | 991,143 |
All other countries [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 1,568,985 | $ 1,276,138 | $ 2,988,203 | $ 2,382,543 |
Guarantor and Nonguarantor Fi67
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 531,481 | $ 751,774 |
Restricted cash | 71,865 | 73,045 |
Receivables, net | 3,324,522 | 3,112,289 |
Warehouse receivables | 1,488,324 | 928,038 |
Prepaid expenses | 268,226 | 215,336 |
Contract assets | 109,272 | 273,053 |
Income taxes receivable | 47,752 | 49,628 |
Other current assets | 265,268 | 227,421 |
Total Current Assets | 6,106,710 | 5,630,584 |
Property and equipment, net | 705,469 | 617,739 |
Goodwill | 3,407,169 | 3,254,740 |
Other intangible assets, net | 1,448,284 | 1,399,112 |
Investments in unconsolidated subsidiaries | 233,889 | 238,001 |
Deferred tax assets, net | 97,890 | 98,746 |
Other assets, net | 536,046 | 479,474 |
Total Assets | 12,535,457 | 11,718,396 |
Accounts payable and accrued expenses | 1,642,030 | 1,573,672 |
Compensation and employee benefits payable | 870,626 | 904,434 |
Accrued bonus and profit sharing | 629,044 | 1,078,345 |
Contract liabilities | 76,216 | 100,615 |
Income taxes payable | 21,918 | 70,634 |
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,471,591 | 910,766 |
Revolving credit facility | 598,000 | |
Other | 16 | 16 |
Total short-term borrowings | 2,069,607 | 910,782 |
Current maturities of long-term debt | 1,466 | 8 |
Other current liabilities | 70,228 | 74,454 |
Total Current Liabilities | 5,381,135 | 4,712,944 |
Long-term debt, net | 1,762,885 | 1,999,603 |
Total Long-Term Debt, net | 1,762,885 | 1,999,603 |
Deferred tax liabilities, net | 187,062 | 147,218 |
Non-current tax liabilities | 140,050 | 140,792 |
Other liabilities | 547,454 | 543,225 |
Total Liabilities | 8,018,586 | 7,543,782 |
Commitments and contingencies | ||
Total CBRE Group, Inc. stockholders' equity | 4,453,577 | 4,114,496 |
Non-controlling interests | 63,294 | 60,118 |
Total Equity | 4,516,871 | 4,174,614 |
Total Liabilities and Equity | 12,535,457 | 11,718,396 |
Eliminations [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Income taxes receivable | (6,916) | (2,162) |
Total Current Assets | (6,916) | (2,162) |
Investments in consolidated subsidiaries | (14,684,312) | (13,548,193) |
Intercompany loan receivable | (3,432,714) | (3,321,330) |
Deferred tax assets, net | (9,269) | (5,300) |
Total Assets | (18,133,211) | (16,876,985) |
Income taxes payable | (6,916) | (2,162) |
Total Current Liabilities | (6,916) | (2,162) |
Intercompany loan payable | (3,432,714) | (3,321,330) |
Total Long-Term Debt, net | (3,432,714) | (3,321,330) |
Deferred tax liabilities, net | (9,269) | (5,300) |
Total Liabilities | (3,448,899) | (3,328,792) |
Commitments and contingencies | ||
Total CBRE Group, Inc. stockholders' equity | (14,684,312) | (13,548,193) |
Total Equity | (14,684,312) | (13,548,193) |
Total Liabilities and Equity | (18,133,211) | (16,876,985) |
Parent [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 7 | 7 |
Income taxes receivable | 3,173 | 2,162 |
Total Current Assets | 3,180 | 2,169 |
Investments in consolidated subsidiaries | 5,972,519 | 5,551,781 |
Total Assets | 5,975,699 | 5,553,950 |
Intercompany loan payable | 1,522,122 | 1,439,454 |
Total Long-Term Debt, net | 1,522,122 | 1,439,454 |
Total Liabilities | 1,522,122 | 1,439,454 |
Commitments and contingencies | ||
Total CBRE Group, Inc. stockholders' equity | 4,453,577 | 4,114,496 |
Total Equity | 4,453,577 | 4,114,496 |
Total Liabilities and Equity | 5,975,699 | 5,553,950 |
CBRE Services [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 8,404 | 15,604 |
Income taxes receivable | 3,744 | |
Total Current Assets | 12,148 | 15,604 |
Investments in consolidated subsidiaries | 5,585,138 | 4,930,109 |
Intercompany loan receivable | 2,732,714 | 2,621,330 |
Other assets, net | 20,639 | 22,810 |
Total Assets | 8,350,639 | 7,589,853 |
Accounts payable and accrued expenses | 18,763 | 29,708 |
Compensation and employee benefits payable | 626 | 626 |
Income taxes payable | 3,314 | |
Revolving credit facility | 598,000 | |
Total short-term borrowings | 598,000 | |
Other current liabilities | 55 | |
Total Current Liabilities | 617,389 | 33,703 |
Long-term debt, net | 1,758,640 | 1,999,603 |
Total Long-Term Debt, net | 1,758,640 | 1,999,603 |
Other liabilities | 2,091 | 4,766 |
Total Liabilities | 2,378,120 | 2,038,072 |
Commitments and contingencies | ||
Total CBRE Group, Inc. stockholders' equity | 5,972,519 | 5,551,781 |
Total Equity | 5,972,519 | 5,551,781 |
Total Liabilities and Equity | 8,350,639 | 7,589,853 |
Guarantor Subsidiaries [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 78,760 | 112,048 |
Restricted cash | 2,034 | 2,095 |
Receivables, net | 1,361,023 | 990,923 |
Warehouse receivables | 964,915 | 479,628 |
Prepaid expenses | 119,201 | 81,106 |
Contract assets | 69,537 | 263,756 |
Income taxes receivable | 6,635 | |
Other current assets | 67,968 | 50,556 |
Total Current Assets | 2,670,073 | 1,980,112 |
Property and equipment, net | 508,976 | 431,755 |
Goodwill | 1,958,448 | 1,774,529 |
Other intangible assets, net | 821,779 | 751,930 |
Investments in unconsolidated subsidiaries | 192,203 | 197,395 |
Investments in consolidated subsidiaries | 3,126,655 | 3,066,303 |
Intercompany loan receivable | 700,000 | 700,000 |
Deferred tax assets, net | 5,300 | 5,300 |
Other assets, net | 415,638 | 348,191 |
Total Assets | 10,399,072 | 9,255,515 |
Accounts payable and accrued expenses | 524,878 | 404,367 |
Compensation and employee benefits payable | 504,909 | 479,306 |
Accrued bonus and profit sharing | 353,632 | 590,534 |
Contract liabilities | 35,149 | 42,994 |
Income taxes payable | 12,327 | 13,704 |
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 955,246 | 474,195 |
Other | 16 | 16 |
Total short-term borrowings | 955,262 | 474,211 |
Current maturities of long-term debt | 59 | |
Other current liabilities | 55,886 | 56,260 |
Total Current Liabilities | 2,442,102 | 2,061,376 |
Long-term debt, net | 29 | |
Intercompany loan payable | 1,849,837 | 1,798,550 |
Total Long-Term Debt, net | 1,849,866 | 1,798,550 |
Deferred tax liabilities, net | 70,996 | 29,785 |
Non-current tax liabilities | 136,320 | 135,396 |
Other liabilities | 314,650 | 300,299 |
Total Liabilities | 4,813,934 | 4,325,406 |
Commitments and contingencies | ||
Total CBRE Group, Inc. stockholders' equity | 5,585,138 | 4,930,109 |
Total Equity | 5,585,138 | 4,930,109 |
Total Liabilities and Equity | 10,399,072 | 9,255,515 |
Nonguarantor Subsidiaries [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 444,310 | 624,115 |
Restricted cash | 69,831 | 70,950 |
Receivables, net | 1,963,499 | 2,121,366 |
Warehouse receivables | 523,409 | 448,410 |
Prepaid expenses | 149,025 | 134,230 |
Contract assets | 39,735 | 9,297 |
Income taxes receivable | 41,116 | 49,628 |
Other current assets | 197,300 | 176,865 |
Total Current Assets | 3,428,225 | 3,634,861 |
Property and equipment, net | 196,493 | 185,984 |
Goodwill | 1,448,721 | 1,480,211 |
Other intangible assets, net | 626,505 | 647,182 |
Investments in unconsolidated subsidiaries | 41,686 | 40,606 |
Deferred tax assets, net | 101,859 | 98,746 |
Other assets, net | 99,769 | 108,473 |
Total Assets | 5,943,258 | 6,196,063 |
Accounts payable and accrued expenses | 1,098,389 | 1,139,597 |
Compensation and employee benefits payable | 365,091 | 424,502 |
Accrued bonus and profit sharing | 275,412 | 487,811 |
Contract liabilities | 41,067 | 57,621 |
Income taxes payable | 16,507 | 55,778 |
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 516,345 | 436,571 |
Total short-term borrowings | 516,345 | 436,571 |
Current maturities of long-term debt | 1,407 | 8 |
Other current liabilities | 14,342 | 18,139 |
Total Current Liabilities | 2,328,560 | 2,620,027 |
Long-term debt, net | 4,216 | |
Intercompany loan payable | 60,755 | 83,326 |
Total Long-Term Debt, net | 64,971 | 83,326 |
Deferred tax liabilities, net | 125,335 | 122,733 |
Non-current tax liabilities | 3,730 | 5,396 |
Other liabilities | 230,713 | 238,160 |
Total Liabilities | 2,753,309 | 3,069,642 |
Commitments and contingencies | ||
Total CBRE Group, Inc. stockholders' equity | 3,126,655 | 3,066,303 |
Non-controlling interests | 63,294 | 60,118 |
Total Equity | 3,189,949 | 3,126,421 |
Total Liabilities and Equity | $ 5,943,258 | $ 6,196,063 |
Guarantor and Nonguarantor Fi68
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Balance Sheets (Parenthetical) (Detail) | Jun. 30, 2018 | Dec. 31, 2017 |
4.875% Senior Notes [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Interest rate of long-term debt | 4.875% | 4.875% |
5.25% Senior Notes [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Interest rate of long-term debt | 5.25% | 5.25% |
5.00% Senior Notes [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Interest rate of long-term debt | 5.00% | 5.00% |
Guarantor and Nonguarantor Fi69
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Statement of Income Captions [Line Items] | ||||
Revenue | $ 5,111,434 | $ 4,439,571 | $ 9,785,386 | $ 8,490,537 |
Cost of services | 3,958,748 | 3,409,540 | 7,578,709 | 6,556,017 |
Operating, administrative and other | 826,282 | 712,615 | 1,558,517 | 1,319,241 |
Depreciation and amortization | 113,399 | 100,386 | 221,564 | 194,423 |
Total costs and expenses | 4,898,429 | 4,222,541 | 9,358,790 | 8,069,681 |
Gain on disposition of real estate | 12,311 | 11,298 | 12,329 | 12,683 |
Operating income | 225,316 | 228,328 | 438,925 | 433,539 |
Equity income from unconsolidated subsidiaries | 96,021 | 75,384 | 136,200 | 90,402 |
Other income | 4,009 | 3,186 | (271) | 7,301 |
Interest income | 1,489 | 1,427 | 5,110 | 3,838 |
Interest expense | 26,885 | 35,430 | 55,743 | 69,440 |
Write-off of financing costs on extinguished debt | 27,982 | |||
Income before provision for income taxes | 299,950 | 272,895 | 496,239 | 465,640 |
(Benefit of) provision for income taxes | 70,319 | 69,887 | 116,483 | 123,706 |
Net income | 229,631 | 203,008 | 379,756 | 341,934 |
Less: Net income attributable to non-controlling interests | 964 | 1,231 | 801 | 3,137 |
Net income attributable to CBRE Group, Inc. | 228,667 | 201,777 | 378,955 | 338,797 |
Eliminations [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Interest income | (34,946) | (30,698) | (67,632) | (60,599) |
Interest expense | (34,946) | (30,698) | (67,632) | (60,599) |
Income from consolidated subsidiaries | (560,066) | (495,632) | (947,394) | (817,060) |
Income before provision for income taxes | (560,066) | (495,632) | (947,394) | (817,060) |
Net income | (560,066) | (495,632) | (947,394) | (817,060) |
Net income attributable to CBRE Group, Inc. | (560,066) | (495,632) | (947,394) | (817,060) |
Parent [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Operating, administrative and other | 7,039 | 1,046 | 12,743 | 762 |
Total costs and expenses | 7,039 | 1,046 | 12,743 | 762 |
Operating income | (7,039) | (1,046) | (12,743) | (762) |
Income from consolidated subsidiaries | 233,952 | 202,422 | 388,525 | 339,267 |
Income before provision for income taxes | 226,913 | 201,376 | 375,782 | 338,505 |
(Benefit of) provision for income taxes | (1,754) | (401) | (3,173) | (292) |
Net income | 228,667 | 201,777 | 378,955 | 338,797 |
Net income attributable to CBRE Group, Inc. | 228,667 | 201,777 | 378,955 | 338,797 |
CBRE Services [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Operating, administrative and other | 246 | 538 | 731 | 887 |
Total costs and expenses | 246 | 538 | 731 | 887 |
Operating income | (246) | (538) | (731) | (887) |
Other income | 1 | 1 | ||
Interest income | 34,946 | 30,698 | 67,632 | 60,599 |
Interest expense | 26,078 | 34,364 | 53,953 | 67,510 |
Write-off of financing costs on extinguished debt | 27,982 | |||
Income from consolidated subsidiaries | 227,472 | 205,012 | 399,815 | 344,076 |
Income before provision for income taxes | 236,094 | 200,809 | 384,781 | 336,279 |
(Benefit of) provision for income taxes | 2,142 | (1,613) | (3,744) | (2,988) |
Net income | 233,952 | 202,422 | 388,525 | 339,267 |
Net income attributable to CBRE Group, Inc. | 233,952 | 202,422 | 388,525 | 339,267 |
Guarantor Subsidiaries [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Revenue | 2,848,854 | 2,590,186 | 5,466,548 | 5,008,786 |
Cost of services | 2,265,206 | 2,054,829 | 4,322,819 | 3,975,517 |
Operating, administrative and other | 430,122 | 387,951 | 802,467 | 703,760 |
Depreciation and amortization | 68,334 | 58,695 | 132,643 | 115,425 |
Total costs and expenses | 2,763,662 | 2,501,475 | 5,257,929 | 4,794,702 |
Gain on disposition of real estate | 11,212 | 2 | 11,230 | 228 |
Operating income | 96,404 | 88,713 | 219,849 | 214,312 |
Equity income from unconsolidated subsidiaries | 94,755 | 74,960 | 134,047 | 89,330 |
Other income | 1,189 | 612 | 2,899 | 1,026 |
Interest income | 1,336 | 892 | 3,788 | 2,539 |
Interest expense | 32,260 | 22,468 | 59,291 | 44,616 |
Royalty and management service (income) expense | (2,370) | (897) | (1,672) | (6,699) |
Income from consolidated subsidiaries | 98,642 | 88,198 | 159,054 | 133,717 |
Income before provision for income taxes | 262,436 | 231,804 | 462,018 | 403,007 |
(Benefit of) provision for income taxes | 34,964 | 26,792 | 62,203 | 58,931 |
Net income | 227,472 | 205,012 | 399,815 | 344,076 |
Net income attributable to CBRE Group, Inc. | 227,472 | 205,012 | 399,815 | 344,076 |
Nonguarantor Subsidiaries [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Revenue | 2,262,580 | 1,849,385 | 4,318,838 | 3,481,751 |
Cost of services | 1,693,542 | 1,354,711 | 3,255,890 | 2,580,500 |
Operating, administrative and other | 388,875 | 323,080 | 742,576 | 613,832 |
Depreciation and amortization | 45,065 | 41,691 | 88,921 | 78,998 |
Total costs and expenses | 2,127,482 | 1,719,482 | 4,087,387 | 3,273,330 |
Gain on disposition of real estate | 1,099 | 11,296 | 1,099 | 12,455 |
Operating income | 136,197 | 141,199 | 232,550 | 220,876 |
Equity income from unconsolidated subsidiaries | 1,266 | 424 | 2,153 | 1,072 |
Other income | 2,820 | 2,573 | (3,170) | 6,274 |
Interest income | 153 | 535 | 1,322 | 1,299 |
Interest expense | 3,493 | 9,296 | 10,131 | 17,913 |
Royalty and management service (income) expense | 2,370 | 897 | 1,672 | 6,699 |
Income before provision for income taxes | 134,573 | 134,538 | 221,052 | 204,909 |
(Benefit of) provision for income taxes | 34,967 | 45,109 | 61,197 | 68,055 |
Net income | 99,606 | 89,429 | 159,855 | 136,854 |
Less: Net income attributable to non-controlling interests | 964 | 1,231 | 801 | 3,137 |
Net income attributable to CBRE Group, Inc. | $ 98,642 | $ 88,198 | $ 159,054 | $ 133,717 |
Guarantor and Nonguarantor Fi70
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net income | $ 229,631 | $ 203,008 | $ 379,756 | $ 341,934 |
Foreign currency translation (loss) gain | (165,926) | 88,649 | (99,894) | 139,837 |
Adoption of Accounting Standards Update 2016-01, net of tax | (3,964) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 628 | 1,380 | 1,383 | 2,888 |
Unrealized gains (losses) on interest rate swaps, net of tax | 214 | (217) | 817 | 77 |
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (122) | 977 | (627) | 1,900 |
Other, net | (10) | 5,528 | (16) | |
Total other comprehensive (loss) income | (165,206) | 90,779 | (96,757) | 144,686 |
Comprehensive income | 64,425 | 293,787 | 282,999 | 486,620 |
Less: Comprehensive income attributable to non-controlling interests | 480 | 1,390 | 122 | 3,317 |
Comprehensive income attributable to CBRE Group, Inc. | 63,945 | 292,397 | 282,877 | 483,303 |
Eliminations [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | (560,066) | (495,632) | (947,394) | (817,060) |
Comprehensive income | (560,066) | (495,632) | (947,394) | (817,060) |
Comprehensive income attributable to CBRE Group, Inc. | (560,066) | (495,632) | (947,394) | (817,060) |
Parent [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 228,667 | 201,777 | 378,955 | 338,797 |
Other, net | 3 | (2) | ||
Total other comprehensive (loss) income | 3 | (2) | ||
Comprehensive income | 228,667 | 201,780 | 378,955 | 338,795 |
Comprehensive income attributable to CBRE Group, Inc. | 228,667 | 201,780 | 378,955 | 338,795 |
CBRE Services [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 233,952 | 202,422 | 388,525 | 339,267 |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 628 | 1,380 | 1,383 | 2,888 |
Unrealized gains (losses) on interest rate swaps, net of tax | 214 | (217) | 817 | 77 |
Total other comprehensive (loss) income | 842 | 1,163 | 2,200 | 2,965 |
Comprehensive income | 234,794 | 203,585 | 390,725 | 342,232 |
Comprehensive income attributable to CBRE Group, Inc. | 234,794 | 203,585 | 390,725 | 342,232 |
Guarantor Subsidiaries [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 227,472 | 205,012 | 399,815 | 344,076 |
Adoption of Accounting Standards Update 2016-01, net of tax | (3,964) | |||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (122) | 896 | (627) | 1,725 |
Other, net | (13) | 20 | (14) | |
Total other comprehensive (loss) income | (122) | 883 | (4,571) | 1,711 |
Comprehensive income | 227,350 | 205,895 | 395,244 | 345,787 |
Comprehensive income attributable to CBRE Group, Inc. | 227,350 | 205,895 | 395,244 | 345,787 |
Nonguarantor Subsidiaries [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 99,606 | 89,429 | 159,855 | 136,854 |
Foreign currency translation (loss) gain | (165,926) | 88,649 | (99,894) | 139,837 |
Unrealized holding (losses) gains on available for sale debt securities, net of tax | 81 | 175 | ||
Other, net | 5,508 | |||
Total other comprehensive (loss) income | (165,926) | 88,730 | (94,386) | 140,012 |
Comprehensive income | (66,320) | 178,159 | 65,469 | 276,866 |
Less: Comprehensive income attributable to non-controlling interests | 480 | 1,390 | 122 | 3,317 |
Comprehensive income attributable to CBRE Group, Inc. | $ (66,800) | $ 176,769 | $ 65,347 | $ 273,549 |
Guarantor and Nonguarantor Fi71
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | $ (92,062) | $ (117,437) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (107,482) | (59,863) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (264,702) | (25,326) |
Contributions to unconsolidated subsidiaries | (21,042) | (32,660) |
Distributions from unconsolidated subsidiaries | 28,235 | 23,970 |
Net proceeds from disposition of real estate held for investment | 14,174 | |
Purchase of equity securities | (13,718) | (9,280) |
Proceeds from sale of equity securities | 8,889 | 9,428 |
Purchase of available for sale debt securities | (18,723) | (10,454) |
Proceeds from the sale of available for sale debt securities | 4,121 | 7,849 |
Other investing activities, net | (6,384) | 2,279 |
Net cash used in investing activities | (376,632) | (94,057) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from senior term loans | 550,000 | |
Proceeds from revolving credit facility | 2,000,000 | 911,000 |
Repayment of revolving credit facility | (1,402,000) | (911,000) |
Repayment of 5.00% senior notes (including premium) | (820,000) | |
Proceeds from notes payable on real estate held for investment | 52 | |
Repayment of notes payable on real estate held for investment | (13,028) | |
Proceeds from notes payable on real estate held for sale and under development | 1,101 | 2,137 |
Repayment of notes payable on real estate held for sale and under development | (2,991) | (9,189) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (11,183) | (15,126) |
Repayment of debt assumed in acquisition of FacilitySource | (26,295) | |
Units repurchased for payment of taxes on equity awards | (4,630) | (1,900) |
Non-controlling interest contributions | 2,744 | 1,941 |
Non-controlling interest distributions | (7,652) | (3,904) |
Other financing activities, net | (76) | (3,666) |
Net cash provided by (used in) financing activities | 266,042 | (29,707) |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (18,821) | 20,190 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (221,473) | (221,011) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 824,819 | 831,412 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 603,346 | 610,401 |
Cash paid during the period for: | ||
Interest | 59,337 | 59,490 |
Income taxes, net | 159,833 | 163,885 |
Parent [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 51,094 | 49,436 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Units repurchased for payment of taxes on equity awards | (4,630) | (1,900) |
(Increase) decrease in intercompany receivables, net | (46,622) | (47,896) |
Other financing activities, net | 158 | 360 |
Net cash provided by (used in) financing activities | (51,094) | (49,436) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 7 | 7 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 7 | 7 |
CBRE Services [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 2,234 | 16,131 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from senior term loans | 550,000 | |
Proceeds from revolving credit facility | 2,000,000 | 911,000 |
Repayment of revolving credit facility | (1,402,000) | (911,000) |
Repayment of 5.00% senior notes (including premium) | (820,000) | |
(Increase) decrease in intercompany receivables, net | (337,235) | (20,114) |
Other financing activities, net | (199) | |
Net cash provided by (used in) financing activities | (9,434) | (20,114) |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (7,200) | (3,983) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 15,604 | 16,889 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 8,404 | 12,906 |
Cash paid during the period for: | ||
Interest | 58,814 | 59,446 |
Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (56,141) | (162,159) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (65,676) | (39,925) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (259,338) | (20,584) |
Contributions to unconsolidated subsidiaries | (17,030) | (23,752) |
Distributions from unconsolidated subsidiaries | 24,986 | 19,333 |
Purchase of equity securities | (13,718) | (9,280) |
Proceeds from sale of equity securities | 8,889 | 9,428 |
Purchase of available for sale debt securities | (18,723) | (10,454) |
Proceeds from the sale of available for sale debt securities | 4,121 | 7,849 |
Other investing activities, net | (6,454) | 2,486 |
Net cash used in investing activities | (342,943) | (64,899) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (13,166) | (11,196) |
Repayment of debt assumed in acquisition of FacilitySource | (26,295) | |
(Increase) decrease in intercompany receivables, net | 405,196 | 46,854 |
Other financing activities, net | (3,145) | |
Net cash provided by (used in) financing activities | 365,735 | 32,513 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (33,349) | (194,545) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 114,143 | 271,088 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 80,794 | 76,543 |
Cash paid during the period for: | ||
Income taxes, net | 77,076 | 82,017 |
Nonguarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (89,249) | (20,845) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (41,806) | (19,938) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (5,364) | (4,742) |
Contributions to unconsolidated subsidiaries | (4,012) | (8,908) |
Distributions from unconsolidated subsidiaries | 3,249 | 4,637 |
Net proceeds from disposition of real estate held for investment | 14,174 | |
Other investing activities, net | 70 | (207) |
Net cash used in investing activities | (33,689) | (29,158) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable on real estate held for investment | 52 | |
Repayment of notes payable on real estate held for investment | (13,028) | |
Proceeds from notes payable on real estate held for sale and under development | 1,101 | 2,137 |
Repayment of notes payable on real estate held for sale and under development | (2,991) | (9,189) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | 1,983 | (3,930) |
Non-controlling interest contributions | 2,744 | 1,941 |
Non-controlling interest distributions | (7,652) | (3,904) |
(Increase) decrease in intercompany receivables, net | (21,339) | 21,156 |
Other financing activities, net | (35) | (881) |
Net cash provided by (used in) financing activities | (39,165) | 7,330 |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (18,821) | 20,190 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (180,924) | (22,483) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 695,065 | 543,428 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 514,141 | 520,945 |
Cash paid during the period for: | ||
Interest | 523 | 44 |
Income taxes, net | $ 82,757 | $ 81,868 |
Guarantor and Nonguarantor Fi72
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statements of Cash Flows (Parenthetical) (Detail) - 5.00% Senior Notes [Member] | Jun. 30, 2018 |
Condensed Cash Flow Statements, Captions [Line Items] | |
Debt Instrument Interest Rate Stated Percentage | 5.00% |
CBRE Services [Member] | |
Condensed Cash Flow Statements, Captions [Line Items] | |
Debt Instrument Interest Rate Stated Percentage | 5.00% |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] $ in Millions | Aug. 03, 2018USD ($) |
Loss Contingencies [Line Items] | |
Loss contingency settlement agreement date | August 3, 2018 |
Litigation settlement amount | $ 100 |