Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CBRE | |
Entity Registrant Name | CBRE GROUP, INC. | |
Entity Central Index Key | 0001138118 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 336,277,673 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 604,952 | $ 777,219 |
Restricted cash | 82,716 | 86,725 |
Receivables, less allowance for doubtful accounts of $60,115 and $60,348 at March 31, 2019 and December 31, 2018, respectively | 3,801,474 | 3,668,591 |
Warehouse receivables | 1,548,249 | 1,342,468 |
Contract assets | 295,403 | 307,020 |
Prepaid expenses | 248,359 | 254,892 |
Income taxes receivable | 58,337 | 71,684 |
Other current assets | 357,370 | 245,611 |
Total Current Assets | 6,996,860 | 6,754,210 |
Property and equipment, net | 730,450 | 721,692 |
Goodwill | 3,663,882 | 3,652,309 |
Other intangible assets, net of accumulated amortization of $1,229,297 and $1,180,393 at March 31, 2019 and December 31, 2018, respectively | 1,338,646 | 1,441,308 |
Operating lease assets | 938,681 | |
Investments in unconsolidated subsidiaries | 228,406 | 216,174 |
Deferred tax assets, net | 80,537 | 51,703 |
Other assets, net | 715,546 | 619,397 |
Total Assets | 14,693,008 | 13,456,793 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 1,833,841 | 1,919,827 |
Compensation and employee benefits payable | 1,152,035 | 1,121,179 |
Accrued bonus and profit sharing | 656,123 | 1,189,395 |
Operating lease liabilities | 185,457 | |
Contract liabilities | 115,137 | 82,227 |
Income taxes payable | 53,795 | 68,100 |
Short-term borrowings: | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,561,207 | 1,328,761 |
Revolving credit facility | 336,000 | |
Total short-term borrowings | 1,897,207 | 1,328,761 |
Current maturities of long-term debt | 2,573 | 3,146 |
Other current liabilities | 113,914 | 90,745 |
Total Current Liabilities | 6,010,082 | 5,803,380 |
Long-term debt, net of current maturities | 1,760,181 | 1,767,260 |
Non-current operating lease liabilities | 969,216 | |
Non-current tax liabilities | 175,139 | 172,626 |
Deferred tax liabilities, net | 126,384 | 107,425 |
Other liabilities | 447,790 | 596,200 |
Total Liabilities | 9,488,792 | 8,446,891 |
Commitments and contingencies | ||
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock; $0.01 par value; 525,000,000 shares authorized; 336,266,487 and 336,912,783 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 3,363 | 3,369 |
Additional paid-in capital | 1,126,984 | 1,149,013 |
Accumulated earnings | 4,675,201 | 4,504,684 |
Accumulated other comprehensive loss | (716,169) | (718,269) |
Total CBRE Group, Inc. Stockholders’ Equity | 5,089,379 | 4,938,797 |
Non-controlling interests | 114,837 | 71,105 |
Total Equity | 5,204,216 | 5,009,902 |
Total Liabilities and Equity | $ 14,693,008 | $ 13,456,793 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 60,115 | $ 60,348 |
Other intangible assets, accumulated amortization | $ 1,229,297 | $ 1,180,393 |
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 | 336,266,487 | 336,912,783 |
Class A common stock, shares outstanding | 336,266,487 | 336,912,783 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 5,135,510 | $ 4,673,952 |
Costs and expenses: | ||
Cost of services | 4,022,034 | 3,619,961 |
Operating, administrative and other | 792,876 | 732,235 |
Depreciation and amortization | 105,823 | 108,165 |
Intangible asset impairment | 89,037 | |
Total costs and expenses | 5,009,770 | 4,460,361 |
Gain on disposition of real estate | 19,247 | 18 |
Operating income | 144,987 | 213,609 |
Equity income from unconsolidated subsidiaries | 72,664 | 40,179 |
Other income (loss) | 20,853 | (4,280) |
Interest income | 1,534 | 3,621 |
Interest expense | 22,726 | 28,858 |
Write-off of financing costs on extinguished debt | 2,608 | 27,982 |
Income before provision for income taxes | 214,704 | 196,289 |
Provision for income taxes | 43,878 | 46,164 |
Net income | 170,826 | 150,125 |
Less: Net income (loss) attributable to non-controlling interests | 6,417 | (163) |
Net income attributable to CBRE Group, Inc. | $ 164,409 | $ 150,288 |
Basic income per share: | ||
Net income per share attributable to CBRE Group, Inc. | $ 0.49 | $ 0.44 |
Weighted average shares outstanding for basic income per share | 336,020,431 | 338,890,098 |
Diluted income per share: | ||
Net income per share attributable to CBRE Group, Inc. | $ 0.48 | $ 0.44 |
Weighted average shares outstanding for diluted income per share | 340,158,399 | 342,589,810 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 170,826 | $ 150,125 |
Other comprehensive income: | ||
Foreign currency translation gain | 937 | 66,032 |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 410 | 755 |
Unrealized (losses) gains on interest rate swaps, net of tax | (59) | 603 |
Unrealized holding gains (losses) on available for sale debt securities, net of tax | 755 | (505) |
Other, net | 1 | 5,528 |
Total other comprehensive income (loss) | 2,044 | 68,449 |
Comprehensive income | 172,870 | 218,574 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 6,361 | (358) |
Comprehensive income attributable to CBRE Group, Inc. | $ 166,509 | 218,932 |
Accounting Standards Update 2016-01 | ||
Other comprehensive income: | ||
Adoption of Accounting Standards Update 2016-01, net of tax | $ (3,964) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 170,826 | $ 150,125 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 105,823 | 108,165 |
Amortization and write-off of financing costs on extinguished debt | 4,175 | 29,733 |
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets | (53,517) | (45,078) |
Intangible asset impairment | 89,037 | |
Net realized and unrealized (gains) losses from investments | (20,853) | 4,280 |
Provision for doubtful accounts | 1,867 | 5,601 |
Compensation expense for equity awards | 29,271 | 29,570 |
Equity income from unconsolidated subsidiaries | (72,664) | (40,179) |
Distribution of earnings from unconsolidated subsidiaries | 77,158 | 45,182 |
Proceeds from sale of mortgage loans | 4,453,797 | 2,910,181 |
Origination of mortgage loans | (4,646,348) | (3,132,008) |
Increase in warehouse lines of credit | 232,446 | 237,239 |
Tenant concessions received | 3,464 | 12,634 |
Purchase of equity securities | (62,117) | (23,569) |
Proceeds from sale of equity securities | 25,730 | 20,001 |
(Increase) decrease in receivables, prepaid expenses and other assets (including contract and lease assets) | (172,218) | 69,971 |
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) | (33,982) | (146,221) |
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing | (519,719) | (483,031) |
(Increase) decrease in income taxes receivable/payable | (11,344) | 4,668 |
Other operating activities, net | (2,721) | (7,222) |
Net cash used in operating activities | (401,889) | (249,958) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (47,665) | (46,724) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (2,142) | |
Contributions to unconsolidated subsidiaries | (23,562) | (10,611) |
Distributions from unconsolidated subsidiaries | 5,974 | 15,216 |
Purchase of equity securities | (2,867) | (10,219) |
Proceeds from sale of equity securities | 4,356 | 4,367 |
Purchase of available for sale debt securities | (12,066) | |
Proceeds from the sale of available for sale debt securities | 603 | 2,264 |
Other investing activities, net | 679 | (6,439) |
Net cash used in investing activities | (64,624) | (64,212) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from senior term loans | 300,000 | 550,000 |
Repayment of senior term loans | (300,000) | |
Proceeds from revolving credit facility | 507,000 | 898,000 |
Repayment of revolving credit facility | (171,000) | (435,000) |
Repayment of 5.00% senior notes (including premium) | (820,000) | |
Repurchase of common stock | (45,088) | |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (17,185) | (8,049) |
Units repurchased for payment of taxes on equity awards | (9,186) | (4,550) |
Non-controlling interest contributions | 40,774 | 1,595 |
Non-controlling interest distributions | (1,347) | (1,025) |
Payment of financing costs | (3,374) | (39) |
Other financing activities, net | (566) | 413 |
Net cash (used in) provided by financing activities | 300,028 | 181,345 |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (9,791) | 29,819 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (176,276) | (103,006) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 863,944 | 824,819 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 687,668 | 721,813 |
Cash paid during the period for: | ||
Interest | 33,606 | 48,994 |
Income taxes, net | $ 54,241 | $ 37,219 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) | Mar. 31, 2019 |
5.00% Senior Notes [Member] | |
Debt Instrument Interest Rate Stated Percentage | 5.00% |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - 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 | 150,125 | 150,288 | (163) | |||
Adoption of Accounting Standards Update 2016-01, net of tax | Accounting Standards Update 2016-01 [Member] | (3,964) | 3,964 | (3,964) | |||
Compensation expense for equity awards | 29,570 | 29,570 | ||||
Units repurchased for payment of taxes on equity awards | (4,550) | (4,550) | ||||
Foreign currency translation gain (loss) | 66,032 | 66,227 | (195) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 755 | 755 | ||||
Unrealized gains (losses) on interest rate swaps, net of tax | 603 | 603 | ||||
Unrealized holding gains (losses) on available for sale debt securities, net of tax | (505) | (505) | ||||
Contributions from non-controlling interests | 1,595 | 1,595 | ||||
Distributions to non-controlling interests | (1,025) | (1,025) | ||||
Other | 1,460 | 2 | 723 | (5,506) | 5,528 | 713 |
Ending balance at Mar. 31, 2018 | 4,418,674 | 3,397 | 1,246,251 | 3,591,753 | (483,770) | 61,043 |
Beginning balance at Dec. 31, 2017 | 4,174,614 | 3,395 | 1,220,508 | 3,443,007 | (552,414) | 60,118 |
Repurchase of common stock | (161,000) | |||||
Ending balance at Dec. 31, 2018 | 5,009,902 | 3,369 | 1,149,013 | 4,504,684 | (718,269) | 71,105 |
Net income | 170,826 | 164,409 | 6,417 | |||
Compensation expense for equity awards | 29,271 | 29,271 | ||||
Units repurchased for payment of taxes on equity awards | (9,186) | (9,186) | ||||
Repurchase of common stock | (45,088) | (11) | (45,077) | |||
Foreign currency translation gain (loss) | 937 | 993 | (56) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 410 | 410 | ||||
Unrealized gains (losses) on interest rate swaps, net of tax | (59) | (59) | ||||
Unrealized holding gains (losses) on available for sale debt securities, net of tax | 755 | 755 | ||||
Contributions from non-controlling interests | 40,774 | 40,774 | ||||
Distributions to non-controlling interests | (1,347) | (1,347) | ||||
Other | 7,021 | 5 | 2,963 | 6,108 | 1 | (2,056) |
Ending balance at Mar. 31, 2019 | $ 5,204,216 | $ 3,363 | $ 1,126,984 | $ 4,675,201 | $ (716,169) | $ 114,837 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. 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, 2018, which are included in our 2018 Annual Report on Form 10-K (2018 Annual Report), 2018 Annual Report 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, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Certain reclassifications have been made to the 2018 financial statements to conform with the 2019 presentation. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Recently Adopted Accounting Pronouncements The Financial Accounting Standards Board (FASB) previously issued six Accounting Standards Updates (ASUs) related to leases. The ASUs issued were: (1) in February 2016, ASU 2016-02, “ Leases (Topic 842) Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 Codification Improvements to Topic 842, Leases Targeted Improvements Leases (Topic 842): Narrow-Scope Improvements for Lessors Leases (Topic 842): Codification Improvements. We adopted these ASUs in the first quarter of 2019 by using the optional transitional method associated with no adjustment to comparative period financial statements presented for prior periods As a result of the adoption of the leasing guidance, the consolidated balance sheet as of January 1, 2019 reflected $1.2 billion of additional lease liabilities, along with corresponding right-of-use assets of $1.0 billion, reflecting adjustments for items such as prepaid and deferred rent, unamortized initial direct costs, and unamortized lease incentive balances. The adoption of the leasing guidance did not have a material impact on our consolidated statements of operations. As of January 1, 2019, we account for leases in accordance with ASC Topic 842, “ Leases 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.” The FASB previously issued two ASUs related to derivatives and hedging. The ASUs issued were: (1) in August 2017, ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting.” 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.” We adopted ASU 2018-09 in the first quarter of 2019 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. Recent Accounting Pronouncements Pending Adoption The FASB previously issued two ASUs related to financial instruments – credit losses. The ASUs issued were: (1) in June 2016, ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” “Codification Improvements to Topic 326, Financial Instruments—Credit Losses.” In August 2018, the FASB issued ASU 2018‑13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” In August 2018, the FASB issued ASU 2018‑14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” In October 2018, the FASB issued ASU 2018‑17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities.” In November 2018, the FASB issued ASU 2018‑18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606.” |
FacilitySource Acquisition
FacilitySource Acquisition | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
FacilitySource Acquisition | 3 . 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 Global Workplace Solutions segment (the FacilitySource Acquisition), with the remaining Blocker Units not held by Blocker Corp. canceled and converted into the right to receive cash consideration as set forth in the Merger Agreement. The estimated net initial purchase price was approximately $266.5 million, with $263.0 million paid in cash. 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 for the occupier outsourcing industry and (ii) drive meaningfully differentiated outcomes for leading occupiers of real estate. The preliminary purchase accounting related to the FacilitySource Acquisition has been recorded in the accompanying consolidated financial statements (with no change in the first quarter of 2019). 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, but do not expect any tax deductible goodwill to be significant. Given the complexity of the transaction, the calculation of the fair value of certain assets and liabilities acquired, primarily 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. |
Warehouse Receivables & Warehou
Warehouse Receivables & Warehouse Lines of Credit | 3 Months Ended |
Mar. 31, 2019 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Warehouse Receivables & Warehouse Lines of Credit | 4 . 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 March 31, 2019 and December 31, 2018, 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, 2018 $ 1,342,468 Origination of mortgage loans 4,646,348 Gains (premiums on loan sales) 8,515 Proceeds from sale of mortgage loans: Sale of mortgage loans (4,445,282 ) Cash collections of premiums on loan sales (8,515 ) Proceeds from sale of mortgage loans (4,453,797 ) Net increase in mortgage servicing rights included in warehouse receivables 4,715 Ending balance at March 31, 2019 $ 1,548,249 The following table is a summary of our warehouse lines of credit in place as of March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Lender Current Maturity Pricing Maximum Facility Size Carrying Value Maximum Facility Size Carrying Value JP Morgan Chase Bank, N.A. (JP Morgan) 10/21/2019 daily one-month LIBOR plus 1.30% $ 985,000 $ 959,921 $ 985,000 $ 871,680 JP Morgan 10/21/2019 daily one-month LIBOR plus 2.75% 15,000 — 15,000 — Capital One, N.A. (Capital One) (1) 7/27/2019 daily one-month LIBOR plus 1.35% 700,000 33,230 325,000 120,195 Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program (2) Cancelable anytime daily one-month LIBOR plus 1.35%, with a LIBOR floor of 0.35% 450,000 123,237 450,000 149,089 TD Bank, N.A. (TD Bank) 6/30/2019 daily one-month LIBOR plus 1.20% 400,000 260,740 400,000 165,945 Bank of America, N.A. (BofA) 6/4/2019 daily one-month LIBOR plus 1.30% 225,000 184,079 225,000 21,852 BofA 6/4/2019 daily one-month LIBOR plus 1.15% 200,000 — 200,000 — $ 2,975,000 $ 1,561,207 $ 2,600,000 $ 1,328,761 (1) During 2018, the maximum facility size was temporarily increased to $325.0 million and reverted to $200.0 million on January 31, 2019. The line was then temporarily increased from $200.0 million to $700.0 million effective February 27, 2019. The maximum facility size reverted to $200.0 million on April 1, 2019. (2) The maximum facility size was temporarily increased from $450.0 million to $575.0 million effective January 2, 2019. The maximum facility size reverted to $450.0 million on February 4, 2019. During the three months ended March 31, 2019, we had a maximum of $2.5 billion of warehouse lines of credit principal outstanding. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Variable Interest Entities (VIEs) | 5 . We hold variable interests in certain VIEs in our Real Estate Investments segment which are not consolidated as it was determined that we are not the primary beneficiary. Our involvement with these entities is in the form of equity co-investments and fee arrangements. As of March 31, 2019 and December 31, 2018, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands): March 31, December 31, 2019 2018 Investments in unconsolidated subsidiaries $ 25,556 $ 23,266 Other current assets 3,940 3,827 Co-investment commitments 21,197 22,363 Maximum exposure to loss $ 50,693 $ 49,456 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6 . 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 months ended March 31, 2019 and 2018. 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 2018 Annual Report. The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 (dollars in thousands): As of March 31, 2019 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 3,189 $ — $ — $ 3,189 Debt securities issued by U.S. federal agencies — 11,167 — 11,167 Corporate debt securities — 27,041 — 27,041 Asset-backed securities — 4,897 — 4,897 Collateralized mortgage obligations — 2,237 — 2,237 Total available for sale debt securities 3,189 45,342 — 48,531 Equity securities 210,160 — — 210,160 Warehouse receivables — 1,548,249 — 1,548,249 Total assets at fair value $ 213,349 $ 1,593,591 $ — $ 1,806,940 Liabilities Interest rate swaps $ — $ 736 $ — $ 736 Securities sold, not yet purchased 4,189 — — 4,189 Total liabilities at fair value $ 4,189 $ 736 $ — $ 4,925 As of December 31, 2018 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 3,138 $ — $ — $ 3,138 Debt securities issued by U.S. federal agencies — 11,196 — 11,196 Corporate debt securities — 27,201 — 27,201 Asset-backed securities — 5,017 — 5,017 Collateralized mortgage obligations — 2,224 — 2,224 Total available for sale debt securities 3,138 45,638 — 48,776 Equity securities 153,762 — — 153,762 Warehouse receivables — 1,342,468 — 1,342,468 Total assets at fair value $ 156,900 $ 1,388,106 $ — $ 1,545,006 Liabilities Interest rate swaps $ — $ 1,070 $ — $ 1,070 Securities sold, not yet purchased 3,133 — — 3,133 Total liabilities at fair value $ 3,133 $ 1,070 $ — $ 4,203 The following non-recurring fair value measurement was recorded for the three months ended March 31, 2019 (dollars in thousands): Total Impairment Charges Net Carrying Value Fair Value Measured and for the as of Recorded Using Three Months Ended March 31, 2019 Level 1 Level 2 Level 3 March 31, 2019 Other intangible assets $ 16,000 $ — $ — $ 16,000 $ 89,037 During the three months ended March 31, 2019, we recorded an intangible asset impairment of $89.0 million in our Real Estate Investments segment. Such impairment charge was included as a separate line item in the accompanying consolidated statements of operations. This non-cash write-off resulted from a review of the anticipated cash flows and the decrease in assets under management in our public securities business driven in part by continued industry-wide shift in investor preference for passive investment programs. There were no significant non-recurring fair value measurements recorded during the three months ended March 31, 2018. 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. The primary source of value is either a contractual purchase commitment from Freddie Mac or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS (see Note 4). • Available For Sale Debt Securities – These investments are carried at their fair value. • Equity Securities – These investments are carried at their fair value. • 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 4 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 $725.0 million at March 31, 2019 and $757.0 million at December 31, 2018. Their actual carrying value, net of unamortized debt issuance costs, totaled $744.0 million and $751.3 million at March 31, 2019 and December 31, 2018, 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 and $455.7 million, respectively, at March 31, 2019 and $616.4 million and $443.7 million, respectively, at December 31, 2018. The actual carrying value of our 4.875 $592.8 million and $422.7 million, respectively, at December 31, 2018. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill [Abstract] | |
Goodwill | 7 . On August 17, 2018, we announced a new organizational structure that became effective on January 1, 2019. Under the new structure, we organize our operations around, and publicly report our financial results on, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions and (3) Real Estate Investments (see Note 14). In connection with this change, we reassessed our reporting units as of January 1, 2019. As a result, we have reassigned the goodwill balance to reflect our new segment structure using a relative fair value allocation approach. Under this approach, the fair value of each impacted reporting unit was determined using a combination of the income approach and the market approach and was compared to the goodwill of the impacted regional segments immediately prior to the reorganization to arrive at the reassigned goodwill balance. We are required to test goodwill for impairment at least annually, or more often if circumstances or events indicate there may be a change in the impairment status, in accordance with ASC Topic 350, “ Intangibles – Goodwill and Other.” The following tables summarizes our change in carrying amount of goodwill for the three months ended March 31, 2019 (dollars in thousands): Advisory Services Global Workplace Solutions Real Estate Investments Consolidated Balance, January 1, 2019: Goodwill $ 3,269,954 $ 875,570 $ 575,291 $ 4,720,815 Accumulated impairment losses (761,448 ) (175,473 ) (131,585 ) (1,068,506 ) 2,508,506 700,097 443,706 3,652,309 Purchase accounting entries 7,518 (292 ) — 7,226 Foreign exchange movement (1,608 ) 7,289 (1,334 ) 4,347 Balance, March 31, 2019: Goodwill 3,275,864 882,567 573,957 4,732,388 Accumulated impairment losses (761,448 ) (175,473 ) (131,585 ) (1,068,506 ) $ 2,514,416 $ 707,094 $ 442,372 $ 3,663,882 |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries | 8 . Investments in unconsolidated subsidiaries are accounted for under the equity method of accounting. Our investment ownership percentages in equity method investments vary, generally ranging up to 50.0%. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): Three Months Ended March 31, 2019 2018 Revenue $ 365,125 $ 343,199 Operating income 94,621 136,208 Net income 48,928 93,996 |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | 9 . Long-Term Debt Long-term debt consists of the following (dollars in thousands): March 31, December 31, 2019 2018 Senior term loans, with interest ranging from 0.75% to 3.49%, due quarterly through 2024 $ 748,632 $ 758,452 4.875% senior notes due in 2026, net of unamortized discount 596,750 596,653 5.25% senior notes due in 2025, net of unamortized premium 426,089 426,134 Other 2,998 3,682 Total long-term debt 1,774,469 1,784,921 Less: current maturities of long-term debt (2,573 ) (3,146 ) Less: unamortized debt issuance costs (11,715 ) (14,515 ) Total long-term debt, net of current maturities $ 1,760,181 $ 1,767,260 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). On December 20, 2018, CBRE Global Acquisition Company, a wholly-owned subsidiary of CBRE Services, entered into an incremental term loan assumption agreement with a syndicate of banks jointly led by Wells Fargo Bank and National Westminster Bank plc to establish a new euro term loan facility under the 2017 Credit Agreement in an aggregate principal amount of €400.0 million. The proceeds of the new euro term loan facility were used to repay a portion of the U.S. dollar denominated term loans outstanding under the 2017 Credit Agreement. On March 4, 2019, CBRE Services entered into an additional incremental assumption agreement with respect to the 2017 Credit Agreement (the 2017 Agreement as amended by such incremental assumption agreement, the 2019 Credit Agreement), which (i) extended the maturity of the U.S. dollar tranche A term loans under the 2017 Credit Agreement, (ii) extended the termination date of the revolving credit commitments available under the 2017 Credit Agreement and (iii) made certain changes to the interest rates and fees applicable to such tranche A term loans and revolving credit commitments. The proceeds from the new tranche A term loan facility under the 2019 Credit Agreement were used to repay the $300.0 million of tranche A term loans outstanding under the 2017 Credit Agreement. The 2019 Credit Agreement is a senior unsecured credit facility that is jointly and severally guaranteed by us and certain of our subsidiaries. As of March 31, 2019, the 2019 Credit Agreement provided for the following: (1) a $2.8 billion incremental revolving credit facility, which includes the capacity to obtain letters of credit and swingline loans and terminates on March 4, 2024; (2) a $300.0 million incremental tranche A term loan facility maturing on March 4, 2024, requiring quarterly principal payments unless our leverage ratio (as defined in the 2019 Credit Agreement) is less than or equal to 2.50 to 1.00 on the last day of the fiscal quarter immediately preceding any such payment date and (3) a €400.0 million term loan facility due and payable in full at maturity on December 20, 2023. The 2017 Credit Agreement was a senior unsecured credit facility that was jointly and severally guaranteed by us and certain of our subsidiaries. Our 2017 Credit Agreement provided for the following: (1) a $2.8 billion revolving credit facility, which included the capacity to obtain letters of credit and swingline loans and had a termination date of October 31, 2022; (2) a $750.0 million delayed draw tranche A term loan facility which would have matured on October 31, 2022 and which required quarterly principal payments unless our leverage ratio (as defined in the 2017 Credit Agreement) was less than or equal to 2.50 to 1.00 on the last day of the fiscal quarter immediately preceding any such payment date and (3) a €400.0 million term loan facility which would have been due and payable in full at maturity on December 20, 2023. 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 2019 Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the 2019 Credit Agreement) to consolidated interest expense of 2.00x and a maximum leverage ratio of total debt less available cash to consolidated EBITDA (as defined in the 2019 Credit Agreement) of 4.25x (and in the case of the first four full fiscal quarters following consummation of a qualified acquisition (as defined in the 2019 Credit Agreement), 4.75x) as of the end of each fiscal quarter. On this basis, our coverage ratio of consolidated EBITDA to consolidated interest expense was 22.74x for the trailing twelve months ended March 31, 2019, and our leverage ratio of total debt less available cash to consolidated EBITDA was 0.80x as of March 31, 2019. Short-Term Borrowings Revolving Credit Facility The revolving credit facility under the 2019 Credit Agreement allows for borrowings outside of the U.S., with a $200.0 million sub-facility available to CBRE Services, one of our Canadian subsidiaries, one of our Australian subsidiaries and one of our New Zealand subsidiaries and a $300.0 million sub-facility available to CBRE Services and one of our U.K. subsidiaries. Borrowings under the revolving credit facility bear interest at varying rates, based at our option, on either (1) the applicable fixed rate plus 0.680% to 1.075% or (2) the daily rate plus 0.0% to 0.075%, in each case as determined by reference to our Credit Rating (as defined in the 2019 Credit Agreement). The 2019 Credit Agreement requires us to pay a fee based on the total amount of the revolving credit facility commitment (whether used or unused). As of March 31, 2019, $336.0 million was outstanding under the revolving credit facility. In addition, as of March 31, 2019, letters of credit totaling $2.0 million were outstanding under our revolving credit facility. 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. The revolving credit facility under the 2017 Credit Agreement allowed for borrowings outside of the U.S., with a $200.0 million sub-facility available to CBRE Services, one of our Canadian subsidiaries, one of our Australian subsidiaries and one of our New Zealand subsidiaries and a $300.0 million sub-facility available to CBRE Services and one of our U.K. subsidiaries. Borrowings under the revolving credit facility bore interest at varying rates, based at our option, on either (1) the applicable fixed rate plus 0.775% to 1.075% or (2) the daily rate plus 0.0% to 0.075%, in each case as determined by reference to our Credit Rating (as defined in the 2017 Credit Agreement). The 2017 Credit Agreement required us to pay a fee based on the total amount of the revolving credit facility commitment (whether used or unused). As of December 31, 2018, no amounts were outstanding under our revolving credit facility other than letters of credit totaling $2.0 million. These letters of credit, which reduced the amount we could have borrowed under the revolving credit facility, were primarily issued in the ordinary course of business. Warehouse Lines of Credit CBRE Capital Markets has warehouse lines of credit with third-party lenders for the purpose of funding mortgage loans that will be resold, and a funding arrangement with Fannie Mae for the purpose of selling a percentage of certain closed multifamily loans to Fannie Mae. These warehouse lines are recourse only to CBRE Capital Markets and are secured by our related warehouse receivables. See Note 4 for additional information. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 10 . Leases We are the lessee in contracts for our office space tenancies and leased vehicles. These arrangements account for the significant portion of our lease liabilities and right-of-use assets. We continually monitor our service arrangements to evaluate whether they meet the definition of a lease. The base terms for our lease arrangements typically do not extend beyond 10 years. We commonly have renewal options in our leases, but most of these options do not create a significant economic incentive for us to extend the lease term. Therefore, payments during periods covered by these renewal options are typically not included in our lease liabilities and right-of-use assets. Specific to our vehicle leases, early termination options are common and economic penalties associated with early termination of these contracts are typically significant enough to make it reasonably certain that we will not exercise such options. Therefore, payments during periods covered by these early termination options in vehicle leases are typically included in our lease liabilities and right-of-use assets. As an accounting policy election, our short-term leases with an initial term of 12 months or less are not recognized as lease liabilities and right-of-use assets in the consolidated balance sheets. The rent expense associated with short term leases is recognized on a straight-line basis over the lease term. Most of our office space leases include variable payments based on our share of actual common area maintenance and operating costs of the leased property. Many of our vehicle leases include variable payments based on actual service and fuel costs. For both office space and vehicle leases, we have elected the practical expedient to not separate lease components from non-lease components. Therefore, these costs are classified as variable lease payments. Lease payments are typically discounted at our incremental borrowing rate because the interest rate implicit in the lease cannot be readily determined in the absence of key inputs which are typically not reported by our lessors. Because we do not generally borrow on a collateralized basis, judgement was used to estimate the secured borrowing rate associated with our leases based on relevant market data and our inputs applied to accepted valuation methodologies. The incremental borrowing rate calculated for each lease also reflects the lease term, currency, and geography specific to each lease. Supplemental balance sheet information related to our leases is as follows (dollars in thousands): Category Classification March 31, 2019 Assets Operating lease assets Operating lease assets $ 938,681 Financing lease assets Other assets, net 59,638 Total leased assets $ 998,319 Liabilities Current: Operating Operating lease liabilities $ 185,457 Financing Other current liabilities 25,007 Non-current: Operating Non-current operating lease liabilities 969,216 Financing Other liabilities 34,348 Total lease liabilities $ 1,214,028 Components of lease cost are as follows (dollars in thousands): Component Classification Three Months Ended March 31, 2019 Operating lease cost Operating, administrative and other $ 46,728 Finance lease cost: Amortization of right-to-use assets (1) 7,169 Interest on lease liabilities Interest expense 204 Variable lease cost (2) 16,947 Sublease income Revenue (240 ) Total lease cost $ 70,808 (1) Amortization costs of $5.9 million from vehicle finance leases utilized in client outsourcing arrangements are included in cost of services. Amortization costs of $1.3 million from all other finance leases are included in depreciation and amortization. ( 2 ) Variable lease costs of $3.1 million from leases in client outsourcing arrangements are included in cost of services. Variable lease costs of $13.8 million from all other leases are included in operating, administrative and other. Weighted average remaining lease term and discount rate for our operating leases are as follows: March 31, 2019 Weighted-average remaining lease term: Operating leases 9 years Finance leases 3 years Weighted-average discount rate: Operating leases 3.4% Finance leases 2.0% Maturities of lease liabilities by fiscal year as of March 31, 2019 are as follows (dollars in thousands): Operating Leases Financing Leases 2019 $ 140,874 $ 19,571 2020 183,229 20,948 2021 177,613 13,342 2022 152,999 6,134 2023 133,500 1,286 Thereafter 550,913 25 Total remaining lease payments at March 31, 2019 $ 1,339,128 $ 61,306 Less: Interest 184,455 1,951 Present value of lease liabilities at March 31, 2019 $ 1,154,673 $ 59,355 As previously disclosed in our Annual Report on Form 10-K 2019 $ 238,954 2020 219,351 2021 202,205 2022 172,267 2023 145,705 Thereafter 510,741 Total minimum payment required $ 1,489,223 Supplemental cash flow information and non-cash activity related to our operating leases are as follows (dollars in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 35,573 Operating cash flows from financing leases 279 Financing cash flows from financing leases 7,414 Right-of-use assets obtained in exchange for new operating lease liabilities 47,467 Right-of-use assets obtained in exchange for new financing lease liabilities 2,668 Other non-cash increases in right-of-use assets (1) 1,372 ( 1 ) These noncash increases in right-of-use assets resulted from lease modifications and remeasurements. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 1 . We are a party to a number of pending or threatened lawsuits arising out of, or incident to, our ordinary course of business. We believe that any losses in excess of the amounts accrued therefore as liabilities on our 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 $24.7 billion at March 31, 2019. 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 both March 31, 2019 and December 31, 2018, CBRE MCI had a $64.0 million letter of credit under this reserve arrangement, and had recorded a liability of approximately $40.3 million and $37.9 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 $618.2 million (including $331.4 million of warehouse receivables, a substantial majority of which are pledged against warehouse lines of credit and are therefore not available to Fannie Mae) at March 31, 2019. 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 both March 31, 2019 and December 31, 2018, CBRE Capital Markets had posted a $5.0 million letter of credit under this reserve arrangement. We had outstanding letters of credit totaling $74.9 We had guarantees totaling $62.3 million as of March 31, 2019, 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 $62.3 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 March 31, 2019, we had issued numerous non-recourse carveout, completion and budget guarantees relating to development projects for the benefit of third parties. These guarantees are commonplace in our industry and are made by us in the ordinary course of our Real Estate Investments business. Non-recourse carveout guarantees generally require that our project-entity borrower not commit specified improper acts, with us potentially liable for all or a portion of such entity’s indebtedness or other damages suffered by the lender if those acts occur. Completion and budget guarantees generally require us to complete construction of the relevant project within a specified timeframe and/or within a specified budget, with us potentially being liable for costs to complete in excess of such timeframe or budget. 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 Real Estate Investments business involves investing our capital in certain real estate investments with our clients. These co-investments generally total up to 2.0% of the equity in a particular fund. As of March 31, 2019, we had aggregate commitments of $49.1 million to fund these future co-investments. Additionally, an important part of our Real Estate Investments business strategy is to invest in unconsolidated real estate subsidiaries as a principal (in most cases co-investing with our clients). As of March 31, 2019, we had committed to fund $50.3 million of additional capital to these unconsolidated subsidiaries. |
Income Per Share and Stockholde
Income Per Share and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Income Per Share and Stockholders' Equity | 1 2 . 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 March 31, 2019 2018 Basic Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 164,409 $ 150,288 Weighted average shares outstanding for basic income per share 336,020,431 338,890,098 Basic income per share attributable to CBRE Group, Inc. shareholders $ 0.49 $ 0.44 Diluted Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 164,409 $ 150,288 Weighted average shares outstanding for basic income per share: 336,020,431 338,890,098 Dilutive effect of contingently issuable shares 4,137,968 3,698,143 Dilutive effect of stock options — 1,569 Weighted average shares outstanding for diluted income per share 340,158,399 342,589,810 Diluted income per share attributable to CBRE Group, Inc. shareholders $ 0.48 $ 0.44 For the three months ended March 31, 2019 and 2018, 547,676 and 69,346, 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. On October 27, 2016, our board of directors authorized the company to repurchase up to an aggregate of $250.0 million of our Class A common stock over three years. Through December 31, 2018, we had spent $161.0 million to repurchase 3,980,656 shares of our Class A common stock with an average price paid per share of $40.43. During the month of January 2019, we spent $45.1 million to repurchase an additional 1,144,449 shares of our Class A common stock with an average price paid per share of $39.38. Additionally, on February 28, 2019, our board of directors authorized a new program for the company to repurchase up to $300.0 million of our Class A common stock over three years, effective March 11, 2019. The previous program terminated upon the effectiveness of the new program. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 1 3 . Disaggregated Revenue The following tables represent a disaggregation of revenue from contracts with customers for the three months ended March 31, 2019 and 2018 by type of service and/or segment (dollars in thousands): Three Months Ended March 31, 2019 Advisory Services Global Workplace Solutions Real Estate Investments Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 3,165,915 $ — $ 3,165,915 Advisory leasing 622,640 — — 622,640 Advisory sales 385,655 — — 385,655 Property and advisory project management 520,884 — — 520,884 Valuation 138,326 — — 138,326 Commercial mortgage origination (1) 23,573 — — 23,573 Loan servicing (2) 6,986 — — 6,986 Investment management — — 106,308 106,308 Development services — — 28,885 28,885 Topic 606 Revenue 1,698,064 3,165,915 135,193 4,999,172 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 97,306 — — 97,306 Loan servicing (2) 39,032 — — 39,032 Total Out of Scope of Topic 606 Revenue 136,338 — — 136,338 Total revenue $ 1,834,402 $ 3,165,915 $ 135,193 $ 5,135,510 Three Months Ended March 31, 2018 (3) Advisory Services Global Workplace Solutions Real Estate Investments Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 2,827,503 $ — $ 2,827,503 Advisory leasing 517,509 — — 517,509 Advisory sales 413,732 — — 413,732 Property and advisory project management 484,782 — — 484,782 Valuation 134,163 — — 134,163 Commercial mortgage origination (1) 24,282 — — 24,282 Loan servicing (2) 5,417 — — 5,417 Investment management — — 123,690 123,690 Development services — — 23,325 23,325 Topic 606 Revenue 1,579,885 2,827,503 147,015 4,554,403 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 83,152 — — 83,152 Loan servicing (2) 36,397 — — 36,397 Total Out of Scope of Topic 606 Revenue 119,549 — — 119,549 Total revenue $ 1,699,434 $ 2,827,503 $ 147,015 $ 4,673,952 (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Our new organizational structure became effective on January 1, 2019. See Note 14 for additional information. Revenue classifications for 2018 have been restated to conform to the new structure. Contract Assets and Liabilities We had contract assets totaling $412.4 million ($295.4 million of which was current) and $381.8 million ($307.0 million of which was current) as of March 31, 2019 and December 31, 2018, respectively. We had contract liabilities totaling $126.0 million ($115.1 million of which was current) and $92.5 million ($82.2 million of which was current) as of March 31, 2019 and December 31, 2018, respectively. During the three months ended March 31, 2019, we recognized revenue of $61.8 million that was included in the contract liability balance at December 31, 2018. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments | 1 4 . On August 17, 2018, we announced a new organizational structure that became effective on January 1, 2019. Under the new structure, we organize our operations around, and publicly report our financial results on, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions and (3) Real Estate Investments. Advisory Services provides a comprehensive range of services globally, including property leasing, property sales, mortgage services, valuation, property management and project management. Global Workplace Solutions provides a broad suite of integrated, contractually-based services to occupiers of real estate, including facilities management, project management, transaction management and management consulting. Real Estate Investments includes: (i) investment management services provided globally; (ii) development services in the U.S. and (iii) a new service designed to help institutional property owners meet the demand for flexible office space solutions. Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended March 31, 2019 2018 (1) Revenue Advisory Services $ 1,834,402 $ 1,699,434 Global Workplace Solutions 3,165,915 2,827,503 Real Estate Investments 135,193 147,015 Total revenue $ 5,135,510 $ 4,673,952 Adjusted EBITDA Advisory Services $ 263,850 $ 215,432 Global Workplace Solutions 99,679 82,735 Real Estate Investments 86,503 49,640 Total Adjusted EBITDA $ 450,032 $ 347,807 (1) Results for 2018 have been presented in conformity with the new structure. Adjusted EBITDA is the measure reported to the chief operating decision maker (CODM) 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 and intangible asset impairments. Amounts shown for adjusted EBITDA further remove (from EBITDA) the impact of certain cash and non-cash items related to acquisitions, costs associated with our reorganization, including cost-savings initiatives, certain carried interest incentive compensation reversal to align with the timing of associated revenue and other non-recurring costs. Adjusted EBITDA is calculated as follows (dollars in thousands): Three Months Ended March 31, 2019 2018 Net income attributable to CBRE Group, Inc. $ 164,409 $ 150,288 Add: Depreciation and amortization 105,823 108,165 Intangible asset impairment 89,037 — Interest expense 22,726 28,858 Write-off of financing costs on extinguished debt 2,608 27,982 Provision for income taxes 43,878 46,164 Less: Interest income 1,534 3,621 EBITDA 426,947 357,836 Adjustments: Costs associated with our reorganization, including cost-savings initiatives (1) 15,749 — Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue 7,336 (10,029 ) Adjusted EBITDA $ 450,032 $ 347,807 (1) Primarily represents severance costs related to headcount reductions in connection with our reorganization announced in the third quarter of 2018 that became effective January 1, 2019. Our CODM is not provided with total asset information by segment and accordingly, does not measure or allocate total assets on a segment basis. As a result, we have not disclosed any asset information by segment. Geographic Information Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Three Months Ended March 31, 2019 2018 Revenue United States $ 3,036,707 $ 2,674,217 United Kingdom 588,581 580,516 All other countries 1,510,222 1,419,219 Total revenue $ 5,135,510 $ 4,673,952 |
Guarantor and Nonguarantor Fina
Guarantor and Nonguarantor Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Guarantor and Nonguarantor Financial Statements | 1 5 . The following condensed consolidating financial information includes condensed consolidating balance sheets as of March 31, 2019 and December 31, 2018 and condensed consolidating statements of operations, condensed consolidating statements of comprehensive income and condensed consolidating statements of cash flows for the three months ended March 31, 2019 and 2018 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 March 31, 2019 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 15,190 $ 65,783 $ 523,972 $ — $ 604,952 Restricted cash — — 11,171 71,545 — 82,716 Receivables, net — 10 1,503,057 2,298,407 — 3,801,474 Warehouse receivables (1) — — 1,213,477 334,772 — 1,548,249 Contract assets — — 281,050 14,353 — 295,403 Prepaid expenses — — 96,466 151,893 — 248,359 Income taxes receivable 66 — 10,963 47,374 (66 ) 58,337 Other current assets — — 84,803 272,567 — 357,370 Total Current Assets 73 15,200 3,266,770 3,714,883 (66 ) 6,996,860 Property and equipment, net — — 505,238 225,212 — 730,450 Goodwill — — 2,230,867 1,433,015 — 3,663,882 Other intangible assets, net — — 731,373 607,273 — 1,338,646 Operating lease assets — — 417,139 521,542 — 938,681 Investments in unconsolidated subsidiaries — — 178,665 49,741 — 228,406 Investments in consolidated subsidiaries 6,968,219 6,051,334 3,356,528 — (16,376,081 ) — Intercompany loan receivable — 2,538,410 700,000 652,354 (3,890,764 ) — Deferred tax assets, net — — 2,666 80,537 (2,666 ) 80,537 Other assets, net — 19,941 546,378 149,227 — 715,546 Total Assets $ 6,968,292 $ 8,624,885 $ 11,935,624 $ 7,433,784 $ (20,269,577 ) $ 14,693,008 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 5,488 $ 640,173 $ 1,188,180 $ — $ 1,833,841 Compensation and employee benefits payable — — 644,534 507,501 — 1,152,035 Accrued bonus and profit sharing — — 293,151 362,972 — 656,123 Operating lease liabilities — — 92,045 93,412 — 185,457 Contract liabilities — — 72,660 42,477 — 115,137 Income taxes payable — 1,836 551 51,474 (66 ) 53,795 Short-term borrowings: Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1) — — 1,201,563 359,644 — 1,561,207 Revolving credit facility — 336,000 — — — 336,000 Total short-term borrowings — 336,000 1,201,563 359,644 — 1,897,207 Current maturities of long-term debt — — 29 2,544 — 2,573 Other current liabilities — 736 77,336 35,842 — 113,914 Total Current Liabilities — 344,060 3,022,042 2,644,046 (66 ) 6,010,082 Long-Term Debt, net: Long-term debt, net — 1,312,606 12 447,563 — 1,760,181 Intercompany loan payable 1,878,913 — 2,011,851 — (3,890,764 ) — Total Long-Term Debt, net 1,878,913 1,312,606 2,011,863 447,563 (3,890,764 ) 1,760,181 Non-current operating lease liabilities — — 463,787 505,429 — 969,216 Non-current tax liabilities — — 142,712 32,427 — 175,139 Deferred tax liabilities, net — — 11,905 117,145 (2,666 ) 126,384 Other liabilities — — 231,981 215,809 — 447,790 Total Liabilities 1,878,913 1,656,666 5,884,290 3,962,419 (3,893,496 ) 9,488,792 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 5,089,379 6,968,219 6,051,334 3,356,528 (16,376,081 ) 5,089,379 Non-controlling interests — — — 114,837 — 114,837 Total Equity 5,089,379 6,968,219 6,051,334 3,471,365 (16,376,081 ) 5,204,216 Total Liabilities and Equity $ 6,968,292 $ 8,624,885 $ 11,935,624 $ 7,433,784 $ (20,269,577 ) $ 14,693,008 (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 2019 Credit Agreement, a substantial majority of warehouse receivables funded under JP Morgan, TD Bank, BofA, Fannie Mae ASAP and Capital One lines of credit are pledged to JP Morgan, TD Bank, BofA, Fannie Mae and Capital One, and accordingly, are not included as collateral for these notes or our other outstanding debt. Condensed Consolidating Balance Sheets As of December 31, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 34,063 $ 261,181 $ 481,968 $ — $ 777,219 Restricted cash — — 13,767 72,958 — 86,725 Receivables, net — 5 1,340,120 2,328,466 — 3,668,591 Warehouse receivables (1) — — 664,095 678,373 — 1,342,468 Contract assets — — 289,214 17,806 — 307,020 Prepaid expenses — — 122,305 132,587 — 254,892 Income taxes receivable 6,099 — 18,992 52,692 (6,099 ) 71,684 Other current assets — — 56,853 188,758 — 245,611 Total Current Assets 6,106 34,068 2,766,527 3,953,608 (6,099 ) 6,754,210 Property and equipment, net — — 512,110 209,582 — 721,692 Goodwill — — 2,224,909 1,427,400 — 3,652,309 Other intangible assets, net — — 835,270 606,038 — 1,441,308 Investments in unconsolidated subsidiaries — — 170,698 45,476 — 216,174 Investments in consolidated subsidiaries 6,759,815 5,595,831 3,228,512 — (15,584,158 ) — Intercompany loan receivable — 2,440,775 700,000 711,244 (3,852,019 ) — Deferred tax assets, net — — 2,666 51,755 (2,718 ) 51,703 Other assets, net — 18,257 483,790 117,350 — 619,397 Total Assets $ 6,765,921 $ 8,088,931 $ 10,924,482 $ 7,122,453 $ (19,444,994 ) $ 13,456,793 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ 40 $ 17,450 $ 655,582 $ 1,246,755 $ — $ 1,919,827 Accrued bonus and profit sharing — — 685,521 503,874 — 1,189,395 Compensation and employee benefits payable — — 662,196 458,983 — 1,121,179 Contract liabilities — — 41,045 41,182 — 82,227 Income taxes payable — 720 6,417 67,062 (6,099 ) 68,100 Short-term borrowings: Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1) — — 657,731 671,030 — 1,328,761 Total short-term borrowings — — 657,731 671,030 — 1,328,761 Current maturities of long-term debt — — 39 3,107 — 3,146 Other current liabilities — 1,070 70,202 19,473 — 90,745 Total Current Liabilities 40 19,240 2,778,733 3,011,466 (6,099 ) 5,803,380 Long-Term Debt, net: Long-term debt, net — 1,309,876 18 457,366 — 1,767,260 Intercompany loan payable 1,827,084 — 2,024,935 — (3,852,019 ) — Total Long-Term Debt, net 1,827,084 1,309,876 2,024,953 457,366 (3,852,019 ) 1,767,260 Non-current tax liabilities — — 164,857 7,769 — 172,626 Deferred tax liabilities, net — — — 110,143 (2,718 ) 107,425 Other liabilities — — 360,108 236,092 — 596,200 Total Liabilities 1,827,124 1,329,116 5,328,651 3,822,836 (3,860,836 ) 8,446,891 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 4,938,797 6,759,815 5,595,831 3,228,512 (15,584,158 ) 4,938,797 Non-controlling interests — — — 71,105 — 71,105 Total Equity 4,938,797 6,759,815 5,595,831 3,299,617 (15,584,158 ) 5,009,902 Total Liabilities and Equity $ 6,765,921 $ 8,088,931 $ 10,924,482 $ 7,122,453 $ (19,444,994 ) $ 13,456,793 (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, Fannie Mae ASAP, Capital One and BofA lines of credit are pledged to JP Morgan, TD Bank, Fannie Mae, 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 March 31, 2019 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 2,966,117 $ 2,169,393 $ — $ 5,135,510 Costs and expenses: Cost of services 2,343,867 1,678,167 — 4,022,034 Operating, administrative and other 250 304 415,731 376,591 — 792,876 Depreciation and amortization — — 65,599 40,224 — 105,823 Intangible asset impairment — — 89,037 — — 89,037 Total costs and expenses 250 304 2,914,234 2,094,982 — 5,009,770 Gain on disposition of real estate — — 19,231 16 — 19,247 Operating (loss) income (250 ) (304 ) 71,114 74,427 — 144,987 Equity income from unconsolidated subsidiaries — — 71,786 878 — 72,664 Other income — — 1,680 19,173 — 20,853 Interest income — 29,259 154 1,380 (29,259 ) 1,534 Interest expense — 19,393 17,626 14,966 (29,259 ) 22,726 Write-off of financing costs on extinguished debt — 2,608 — — — 2,608 Royalty and management service expense (income) — — 6,740 (6,740 ) — — Income from consolidated subsidiaries 164,593 159,475 40,694 — (364,762 ) — Income before (benefit of) provision for income taxes 164,343 166,429 161,062 87,632 (364,762 ) 214,704 (Benefit of) provision for income taxes (66 ) 1,836 1,587 40,521 — 43,878 Net income 164,409 164,593 159,475 47,111 (364,762 ) 170,826 Less: Net income attributable to non-controlling interests — — — 6,417 — 6,417 Net income attributable to CBRE Group, Inc. $ 164,409 $ 164,593 $ 159,475 $ 40,694 $ (364,762 ) $ 164,409 Three Months Ended March 31, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 2,617,694 $ 2,056,258 $ — $ 4,673,952 Costs and expenses: Cost of services — — 2,057,613 1,562,348 — 3,619,961 Operating, administrative and other 5,704 485 360,631 365,415 — 732,235 Depreciation and amortization — — 64,309 43,856 — 108,165 Total costs and expenses 5,704 485 2,482,553 1,971,619 — 4,460,361 Gain on disposition of real estate — — 18 — — 18 Operating (loss) income (5,704 ) (485 ) 135,159 84,639 — 213,609 Equity income from unconsolidated subsidiaries — — 39,292 887 — 40,179 Other income (loss) — — 1,710 (5,990 ) — (4,280 ) Interest income — 32,686 2,452 1,169 (32,686 ) 3,621 Interest expense — 27,875 27,031 6,638 (32,686 ) 28,858 Write-off of financing costs on extinguished debt — 27,982 — — — 27,982 Royalty and management service expense (income) — — 13,171 (13,171 ) — — Income from consolidated subsidiaries 154,573 172,343 61,171 — (388,087 ) — Income before (benefit of) provision for income taxes 148,869 148,687 199,582 87,238 (388,087 ) 196,289 (Benefit of) provision for income taxes (1,419 ) (5,886 ) 27,239 26,230 — 46,164 Net income 150,288 154,573 172,343 61,008 (388,087 ) 150,125 Less: Net loss attributable to non-controlling interests — — — (163 ) — (163 ) Net income attributable to CBRE Group, Inc. $ 150,288 $ 154,573 $ 172,343 $ 61,171 $ (388,087 ) $ 150,288 Condensed Consolidating Statements of Comprehensive Income Three Months Ended March 31, 2019 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 164,409 $ 164,593 $ 159,475 $ 47,111 $ (364,762 ) $ 170,826 Other comprehensive income: Foreign currency translation gain — — — 937 — 937 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 410 — — — 410 Unrealized losses on interest rate swaps, net — (59 ) — — — (59 ) Unrealized holding gains on available for sale debt securities, net — — 755 — — 755 Other, net — — 1 — — 1 Total other comprehensive income — 351 756 937 — 2,044 Comprehensive income 164,409 164,944 160,231 48,048 (364,762 ) 172,870 Less: Comprehensive income attributable to non-controlling interests — — — 6,361 — 6,361 Comprehensive income attributable to CBRE Group, Inc. $ 164,409 $ 164,944 $ 160,231 $ 41,687 $ (364,762 ) $ 166,509 Three Months Ended March 31, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 150,288 $ 154,573 $ 172,343 $ 61,008 $ (388,087 ) $ 150,125 Other comprehensive income (loss): Foreign currency translation gain — — — 66,032 — 66,032 Adoption of Accounting Standards Update 2016-01, net — — (3,964 ) — — (3,964 ) Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 755 — — — 755 Unrealized gains on interest rate swaps, net — 603 — — — 603 Unrealized holding losses on available for sale debt securities, net — — (505 ) — — (505 ) Other, net — — 20 5,508 — 5,528 Total other comprehensive income (loss) — 1,358 (4,449 ) 71,540 — 68,449 Comprehensive income 150,288 155,931 167,894 132,548 (388,087 ) 218,574 Less: Comprehensive loss attributable to non-controlling interests — — — (358 ) — (358 ) Comprehensive income attributable to CBRE Group, Inc. $ 150,288 $ 155,931 $ 167,894 $ 132,906 $ (388,087 ) $ 218,932 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Consolidated Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 35,080 $ (1,398 ) $ (341,646 ) $ (93,925 ) $ (401,889 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (21,511 ) (26,154 ) (47,665 ) Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired — — (1,798 ) (344 ) (2,142 ) Contributions to unconsolidated subsidiaries — — (18,722 ) (4,840 ) (23,562 ) Distributions from unconsolidated subsidiaries — — 5,797 177 5,974 Purchase of equity securities — — (2,867 ) — (2,867 ) Proceeds from sale of equity securities — — 2,798 1,558 4,356 Proceeds from the sale of available for sale debt securities — — 603 — 603 Other investing activities, net — — 689 (10 ) 679 Net cash used in investing activities — — (35,011 ) (29,613 ) (64,624 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from senior term loans — 300,000 — — 300,000 Repayment of senior term loans — (300,000 ) — — (300,000 ) Proceeds from revolving credit facility — 507,000 — — 507,000 Repayment of revolving credit facility — (171,000 ) — — (171,000 ) Repurchase of common stock (45,088 ) — — — (45,088 ) Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) — — (16,319 ) (866 ) (17,185 ) Units repurchased for payment of taxes on equity awards (9,186 ) — — — (9,186 ) Non-controlling interest contributions — — — 40,774 40,774 Non-controlling interest distributions — — — (1,347 ) (1,347 ) Payment of financing costs — (3,353 ) — (21 ) (3,374 ) Decrease (increase) in intercompany receivables, net 19,194 (350,122 ) 194,992 135,936 — Other financing activities, net — — (10 ) (556 ) (566 ) Net cash (used in) provided by financing activities (35,080 ) (17,475 ) 178,663 173,920 300,028 Effect of currency exchange rate changes on cash and cash equivalents and restricted cash — — — (9,791 ) (9,791 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH — (18,873 ) (197,994 ) 40,591 (176,276 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD 7 34,063 274,948 554,926 863,944 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD $ 7 $ 15,190 $ 76,954 $ 595,517 $ 687,668 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 28,993 $ — $ 4,613 $ 33,606 Income taxes, net $ — $ — $ 3,197 $ 51,044 $ 54,241 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Consolidated Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 26,028 $ (21,075 ) $ (200,152 ) $ (54,759 ) $ (249,958 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (30,870 ) (15,854 ) (46,724 ) Contributions to unconsolidated subsidiaries — — (7,932 ) (2,679 ) (10,611 ) Distributions from unconsolidated subsidiaries — — 14,869 347 15,216 Purchase of equity securities — — (10,219 ) — (10,219 ) Proceeds from sale of equity securities — — 4,367 — 4,367 Purchase of available for sale debt securities — — (12,066 ) — (12,066 ) Proceeds from the sale of available for sale debt securities — — 2,264 — 2,264 Other investing activities, net — — (6,590 ) 151 (6,439 ) Net cash used in investing activities — — (46,177 ) (18,035 ) (64,212 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from senior term loans — 550,000 — — 550,000 Proceeds from revolving credit facility — 898,000 — — 898,000 Repayment of revolving credit facility — (435,000 ) — — (435,000 ) Repayment of 5.00% senior notes (including premium) — (820,000 ) — — (820,000 ) Acquisition of businesses (cash (paid) received for acquisitions more than three months after purchase date) — — (11,463 ) 3,414 (8,049 ) Units repurchased for payment of taxes on equity awards (4,550 ) — — — (4,550 ) Non-controlling interest contributions — — — 1,595 1,595 Non-controlling interest distributions — — — (1,025 ) (1,025 ) Payment of financing costs — (39 ) — − (39 ) (Increase) decrease in intercompany receivables, net (21,532 ) (179,368 ) 217,675 (16,775 ) — Other financing activities, net 54 — — 359 413 Net cash (used in) provided by financing activities (26,028 ) 13,593 206,212 (12,432 ) 181,345 Effect of currency exchange rate changes on cash and cash equivalents and restricted cash — — — 29,819 29,819 NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH — (7,482 ) (40,117 ) (55,407 ) (103,006 ) 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 $ 8,122 $ 74,026 $ 639,658 $ 721,813 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 48,490 $ — $ 504 $ 48,994 Income taxes, net $ — $ — $ 118 $ 37,101 $ 37,219 |
Warehouse Receivables & Wareh_2
Warehouse Receivables & Warehouse Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 $ 1,342,468 Origination of mortgage loans 4,646,348 Gains (premiums on loan sales) 8,515 Proceeds from sale of mortgage loans: Sale of mortgage loans (4,445,282 ) Cash collections of premiums on loan sales (8,515 ) Proceeds from sale of mortgage loans (4,453,797 ) Net increase in mortgage servicing rights included in warehouse receivables 4,715 Ending balance at March 31, 2019 $ 1,548,249 |
Summary of Warehouse Lines of Credit in Place | The following table is a summary of our warehouse lines of credit in place as of March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Lender Current Maturity Pricing Maximum Facility Size Carrying Value Maximum Facility Size Carrying Value JP Morgan Chase Bank, N.A. (JP Morgan) 10/21/2019 daily one-month LIBOR plus 1.30% $ 985,000 $ 959,921 $ 985,000 $ 871,680 JP Morgan 10/21/2019 daily one-month LIBOR plus 2.75% 15,000 — 15,000 — Capital One, N.A. (Capital One) (1) 7/27/2019 daily one-month LIBOR plus 1.35% 700,000 33,230 325,000 120,195 Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program (2) Cancelable anytime daily one-month LIBOR plus 1.35%, with a LIBOR floor of 0.35% 450,000 123,237 450,000 149,089 TD Bank, N.A. (TD Bank) 6/30/2019 daily one-month LIBOR plus 1.20% 400,000 260,740 400,000 165,945 Bank of America, N.A. (BofA) 6/4/2019 daily one-month LIBOR plus 1.30% 225,000 184,079 225,000 21,852 BofA 6/4/2019 daily one-month LIBOR plus 1.15% 200,000 — 200,000 — $ 2,975,000 $ 1,561,207 $ 2,600,000 $ 1,328,761 (1) During 2018, the maximum facility size was temporarily increased to $325.0 million and reverted to $200.0 million on January 31, 2019. The line was then temporarily increased from $200.0 million to $700.0 million effective February 27, 2019. The maximum facility size reverted to $200.0 million on April 1, 2019. (2) The maximum facility size was temporarily increased from $450.0 million to $575.0 million effective January 2, 2019. The maximum facility size reverted to $450.0 million on February 4, 2019. |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Maximum Exposure to Loss | As of March 31, 2019 and December 31, 2018, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands): March 31, December 31, 2019 2018 Investments in unconsolidated subsidiaries $ 25,556 $ 23,266 Other current assets 3,940 3,827 Co-investment commitments 21,197 22,363 Maximum exposure to loss $ 50,693 $ 49,456 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 (dollars in thousands): As of March 31, 2019 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 3,189 $ — $ — $ 3,189 Debt securities issued by U.S. federal agencies — 11,167 — 11,167 Corporate debt securities — 27,041 — 27,041 Asset-backed securities — 4,897 — 4,897 Collateralized mortgage obligations — 2,237 — 2,237 Total available for sale debt securities 3,189 45,342 — 48,531 Equity securities 210,160 — — 210,160 Warehouse receivables — 1,548,249 — 1,548,249 Total assets at fair value $ 213,349 $ 1,593,591 $ — $ 1,806,940 Liabilities Interest rate swaps $ — $ 736 $ — $ 736 Securities sold, not yet purchased 4,189 — — 4,189 Total liabilities at fair value $ 4,189 $ 736 $ — $ 4,925 As of December 31, 2018 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 3,138 $ — $ — $ 3,138 Debt securities issued by U.S. federal agencies — 11,196 — 11,196 Corporate debt securities — 27,201 — 27,201 Asset-backed securities — 5,017 — 5,017 Collateralized mortgage obligations — 2,224 — 2,224 Total available for sale debt securities 3,138 45,638 — 48,776 Equity securities 153,762 — — 153,762 Warehouse receivables — 1,342,468 — 1,342,468 Total assets at fair value $ 156,900 $ 1,388,106 $ — $ 1,545,006 Liabilities Interest rate swaps $ — $ 1,070 $ — $ 1,070 Securities sold, not yet purchased 3,133 — — 3,133 Total liabilities at fair value $ 3,133 $ 1,070 $ — $ 4,203 |
Summary of Non-Recurring Fair Value Measurement | The following non-recurring fair value measurement was recorded for the three months ended March 31, 2019 (dollars in thousands): Total Impairment Charges Net Carrying Value Fair Value Measured and for the as of Recorded Using Three Months Ended March 31, 2019 Level 1 Level 2 Level 3 March 31, 2019 Other intangible assets $ 16,000 $ — $ — $ 16,000 $ 89,037 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill [Abstract] | |
Schedule of Changes in Goodwill by Segment | The following tables summarizes our change in carrying amount of goodwill for the three months ended March 31, 2019 (dollars in thousands): Advisory Services Global Workplace Solutions Real Estate Investments Consolidated Balance, January 1, 2019: Goodwill $ 3,269,954 $ 875,570 $ 575,291 $ 4,720,815 Accumulated impairment losses (761,448 ) (175,473 ) (131,585 ) (1,068,506 ) 2,508,506 700,097 443,706 3,652,309 Purchase accounting entries 7,518 (292 ) — 7,226 Foreign exchange movement (1,608 ) 7,289 (1,334 ) 4,347 Balance, March 31, 2019: Goodwill 3,275,864 882,567 573,957 4,732,388 Accumulated impairment losses (761,448 ) (175,473 ) (131,585 ) (1,068,506 ) $ 2,514,416 $ 707,094 $ 442,372 $ 3,663,882 |
Investments in Unconsolidated_2
Investments in Unconsolidated Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Revenue $ 365,125 $ 343,199 Operating income 94,621 136,208 Net income 48,928 93,996 |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (dollars in thousands): March 31, December 31, 2019 2018 Senior term loans, with interest ranging from 0.75% to 3.49%, due quarterly through 2024 $ 748,632 $ 758,452 4.875% senior notes due in 2026, net of unamortized discount 596,750 596,653 5.25% senior notes due in 2025, net of unamortized premium 426,089 426,134 Other 2,998 3,682 Total long-term debt 1,774,469 1,784,921 Less: current maturities of long-term debt (2,573 ) (3,146 ) Less: unamortized debt issuance costs (11,715 ) (14,515 ) Total long-term debt, net of current maturities $ 1,760,181 $ 1,767,260 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to our leases is as follows (dollars in thousands): Category Classification March 31, 2019 Assets Operating lease assets Operating lease assets $ 938,681 Financing lease assets Other assets, net 59,638 Total leased assets $ 998,319 Liabilities Current: Operating Operating lease liabilities $ 185,457 Financing Other current liabilities 25,007 Non-current: Operating Non-current operating lease liabilities 969,216 Financing Other liabilities 34,348 Total lease liabilities $ 1,214,028 |
Schedule of Components of Lease Costs | Components of lease cost are as follows (dollars in thousands): Component Classification Three Months Ended March 31, 2019 Operating lease cost Operating, administrative and other $ 46,728 Finance lease cost: Amortization of right-to-use assets (1) 7,169 Interest on lease liabilities Interest expense 204 Variable lease cost (2) 16,947 Sublease income Revenue (240 ) Total lease cost $ 70,808 (1) Amortization costs of $5.9 million from vehicle finance leases utilized in client outsourcing arrangements are included in cost of services. Amortization costs of $1.3 million from all other finance leases are included in depreciation and amortization. ( 2 ) Variable lease costs of $3.1 million from leases in client outsourcing arrangements are included in cost of services. Variable lease costs of $13.8 million from all other leases are included in operating, administrative and other. |
Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases | Weighted average remaining lease term and discount rate for our operating leases are as follows: March 31, 2019 Weighted-average remaining lease term: Operating leases 9 years Finance leases 3 years Weighted-average discount rate: Operating leases 3.4% Finance leases 2.0% |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities by fiscal year as of March 31, 2019 are as follows (dollars in thousands): Operating Leases Financing Leases 2019 $ 140,874 $ 19,571 2020 183,229 20,948 2021 177,613 13,342 2022 152,999 6,134 2023 133,500 1,286 Thereafter 550,913 25 Total remaining lease payments at March 31, 2019 $ 1,339,128 $ 61,306 Less: Interest 184,455 1,951 Present value of lease liabilities at March 31, 2019 $ 1,154,673 $ 59,355 |
Schedule by Year of Future Minimum Lease Payments for Noncancelable Operating Leases | As previously disclosed in our Annual Report on Form 10-K 2019 $ 238,954 2020 219,351 2021 202,205 2022 172,267 2023 145,705 Thereafter 510,741 Total minimum payment required $ 1,489,223 |
Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases | Supplemental cash flow information and non-cash activity related to our operating leases are as follows (dollars in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 35,573 Operating cash flows from financing leases 279 Financing cash flows from financing leases 7,414 Right-of-use assets obtained in exchange for new operating lease liabilities 47,467 Right-of-use assets obtained in exchange for new financing lease liabilities 2,668 Other non-cash increases in right-of-use assets (1) 1,372 ( 1 ) These noncash increases in right-of-use assets resulted from lease modifications and remeasurements. |
Income Per Share and Stockhol_2
Income Per Share and Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Basic Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 164,409 $ 150,288 Weighted average shares outstanding for basic income per share 336,020,431 338,890,098 Basic income per share attributable to CBRE Group, Inc. shareholders $ 0.49 $ 0.44 Diluted Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 164,409 $ 150,288 Weighted average shares outstanding for basic income per share: 336,020,431 338,890,098 Dilutive effect of contingently issuable shares 4,137,968 3,698,143 Dilutive effect of stock options — 1,569 Weighted average shares outstanding for diluted income per share 340,158,399 342,589,810 Diluted income per share attributable to CBRE Group, Inc. shareholders $ 0.48 $ 0.44 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 by type of service and/or segment (dollars in thousands): Three Months Ended March 31, 2019 Advisory Services Global Workplace Solutions Real Estate Investments Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 3,165,915 $ — $ 3,165,915 Advisory leasing 622,640 — — 622,640 Advisory sales 385,655 — — 385,655 Property and advisory project management 520,884 — — 520,884 Valuation 138,326 — — 138,326 Commercial mortgage origination (1) 23,573 — — 23,573 Loan servicing (2) 6,986 — — 6,986 Investment management — — 106,308 106,308 Development services — — 28,885 28,885 Topic 606 Revenue 1,698,064 3,165,915 135,193 4,999,172 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 97,306 — — 97,306 Loan servicing (2) 39,032 — — 39,032 Total Out of Scope of Topic 606 Revenue 136,338 — — 136,338 Total revenue $ 1,834,402 $ 3,165,915 $ 135,193 $ 5,135,510 Three Months Ended March 31, 2018 (3) Advisory Services Global Workplace Solutions Real Estate Investments Consolidated Topic 606 Revenue: Global workplace solutions $ — $ 2,827,503 $ — $ 2,827,503 Advisory leasing 517,509 — — 517,509 Advisory sales 413,732 — — 413,732 Property and advisory project management 484,782 — — 484,782 Valuation 134,163 — — 134,163 Commercial mortgage origination (1) 24,282 — — 24,282 Loan servicing (2) 5,417 — — 5,417 Investment management — — 123,690 123,690 Development services — — 23,325 23,325 Topic 606 Revenue 1,579,885 2,827,503 147,015 4,554,403 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 83,152 — — 83,152 Loan servicing (2) 36,397 — — 36,397 Total Out of Scope of Topic 606 Revenue 119,549 — — 119,549 Total revenue $ 1,699,434 $ 2,827,503 $ 147,015 $ 4,673,952 (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Our new organizational structure became effective on January 1, 2019. See Note 14 for additional information. Revenue classifications for 2018 have been restated to conform to the new structure. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summarized Financial Information by Segment | Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended March 31, 2019 2018 (1) Revenue Advisory Services $ 1,834,402 $ 1,699,434 Global Workplace Solutions 3,165,915 2,827,503 Real Estate Investments 135,193 147,015 Total revenue $ 5,135,510 $ 4,673,952 Adjusted EBITDA Advisory Services $ 263,850 $ 215,432 Global Workplace Solutions 99,679 82,735 Real Estate Investments 86,503 49,640 Total Adjusted EBITDA $ 450,032 $ 347,807 (1) Results for 2018 have been presented in conformity with the new structure. |
Adjusted EBITDA Calculation by Segment | Adjusted EBITDA is calculated as follows (dollars in thousands): Three Months Ended March 31, 2019 2018 Net income attributable to CBRE Group, Inc. $ 164,409 $ 150,288 Add: Depreciation and amortization 105,823 108,165 Intangible asset impairment 89,037 — Interest expense 22,726 28,858 Write-off of financing costs on extinguished debt 2,608 27,982 Provision for income taxes 43,878 46,164 Less: Interest income 1,534 3,621 EBITDA 426,947 357,836 Adjustments: Costs associated with our reorganization, including cost-savings initiatives (1) 15,749 — Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue 7,336 (10,029 ) Adjusted EBITDA $ 450,032 $ 347,807 (1) Primarily represents severance costs related to headcount reductions in connection with our reorganization announced in the third quarter of 2018 that became effective January 1, 2019. |
Summary of Geographic Information | Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Three Months Ended March 31, 2019 2018 Revenue United States $ 3,036,707 $ 2,674,217 United Kingdom 588,581 580,516 All other countries 1,510,222 1,419,219 Total revenue $ 5,135,510 $ 4,673,952 |
Guarantor and Nonguarantor Fi_2
Guarantor and Nonguarantor Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets As of March 31, 2019 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 15,190 $ 65,783 $ 523,972 $ — $ 604,952 Restricted cash — — 11,171 71,545 — 82,716 Receivables, net — 10 1,503,057 2,298,407 — 3,801,474 Warehouse receivables (1) — — 1,213,477 334,772 — 1,548,249 Contract assets — — 281,050 14,353 — 295,403 Prepaid expenses — — 96,466 151,893 — 248,359 Income taxes receivable 66 — 10,963 47,374 (66 ) 58,337 Other current assets — — 84,803 272,567 — 357,370 Total Current Assets 73 15,200 3,266,770 3,714,883 (66 ) 6,996,860 Property and equipment, net — — 505,238 225,212 — 730,450 Goodwill — — 2,230,867 1,433,015 — 3,663,882 Other intangible assets, net — — 731,373 607,273 — 1,338,646 Operating lease assets — — 417,139 521,542 — 938,681 Investments in unconsolidated subsidiaries — — 178,665 49,741 — 228,406 Investments in consolidated subsidiaries 6,968,219 6,051,334 3,356,528 — (16,376,081 ) — Intercompany loan receivable — 2,538,410 700,000 652,354 (3,890,764 ) — Deferred tax assets, net — — 2,666 80,537 (2,666 ) 80,537 Other assets, net — 19,941 546,378 149,227 — 715,546 Total Assets $ 6,968,292 $ 8,624,885 $ 11,935,624 $ 7,433,784 $ (20,269,577 ) $ 14,693,008 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 5,488 $ 640,173 $ 1,188,180 $ — $ 1,833,841 Compensation and employee benefits payable — — 644,534 507,501 — 1,152,035 Accrued bonus and profit sharing — — 293,151 362,972 — 656,123 Operating lease liabilities — — 92,045 93,412 — 185,457 Contract liabilities — — 72,660 42,477 — 115,137 Income taxes payable — 1,836 551 51,474 (66 ) 53,795 Short-term borrowings: Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1) — — 1,201,563 359,644 — 1,561,207 Revolving credit facility — 336,000 — — — 336,000 Total short-term borrowings — 336,000 1,201,563 359,644 — 1,897,207 Current maturities of long-term debt — — 29 2,544 — 2,573 Other current liabilities — 736 77,336 35,842 — 113,914 Total Current Liabilities — 344,060 3,022,042 2,644,046 (66 ) 6,010,082 Long-Term Debt, net: Long-term debt, net — 1,312,606 12 447,563 — 1,760,181 Intercompany loan payable 1,878,913 — 2,011,851 — (3,890,764 ) — Total Long-Term Debt, net 1,878,913 1,312,606 2,011,863 447,563 (3,890,764 ) 1,760,181 Non-current operating lease liabilities — — 463,787 505,429 — 969,216 Non-current tax liabilities — — 142,712 32,427 — 175,139 Deferred tax liabilities, net — — 11,905 117,145 (2,666 ) 126,384 Other liabilities — — 231,981 215,809 — 447,790 Total Liabilities 1,878,913 1,656,666 5,884,290 3,962,419 (3,893,496 ) 9,488,792 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 5,089,379 6,968,219 6,051,334 3,356,528 (16,376,081 ) 5,089,379 Non-controlling interests — — — 114,837 — 114,837 Total Equity 5,089,379 6,968,219 6,051,334 3,471,365 (16,376,081 ) 5,204,216 Total Liabilities and Equity $ 6,968,292 $ 8,624,885 $ 11,935,624 $ 7,433,784 $ (20,269,577 ) $ 14,693,008 (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 2019 Credit Agreement, a substantial majority of warehouse receivables funded under JP Morgan, TD Bank, BofA, Fannie Mae ASAP and Capital One lines of credit are pledged to JP Morgan, TD Bank, BofA, Fannie Mae and Capital One, and accordingly, are not included as collateral for these notes or our other outstanding debt. Condensed Consolidating Balance Sheets As of December 31, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 34,063 $ 261,181 $ 481,968 $ — $ 777,219 Restricted cash — — 13,767 72,958 — 86,725 Receivables, net — 5 1,340,120 2,328,466 — 3,668,591 Warehouse receivables (1) — — 664,095 678,373 — 1,342,468 Contract assets — — 289,214 17,806 — 307,020 Prepaid expenses — — 122,305 132,587 — 254,892 Income taxes receivable 6,099 — 18,992 52,692 (6,099 ) 71,684 Other current assets — — 56,853 188,758 — 245,611 Total Current Assets 6,106 34,068 2,766,527 3,953,608 (6,099 ) 6,754,210 Property and equipment, net — — 512,110 209,582 — 721,692 Goodwill — — 2,224,909 1,427,400 — 3,652,309 Other intangible assets, net — — 835,270 606,038 — 1,441,308 Investments in unconsolidated subsidiaries — — 170,698 45,476 — 216,174 Investments in consolidated subsidiaries 6,759,815 5,595,831 3,228,512 — (15,584,158 ) — Intercompany loan receivable — 2,440,775 700,000 711,244 (3,852,019 ) — Deferred tax assets, net — — 2,666 51,755 (2,718 ) 51,703 Other assets, net — 18,257 483,790 117,350 — 619,397 Total Assets $ 6,765,921 $ 8,088,931 $ 10,924,482 $ 7,122,453 $ (19,444,994 ) $ 13,456,793 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ 40 $ 17,450 $ 655,582 $ 1,246,755 $ — $ 1,919,827 Accrued bonus and profit sharing — — 685,521 503,874 — 1,189,395 Compensation and employee benefits payable — — 662,196 458,983 — 1,121,179 Contract liabilities — — 41,045 41,182 — 82,227 Income taxes payable — 720 6,417 67,062 (6,099 ) 68,100 Short-term borrowings: Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1) — — 657,731 671,030 — 1,328,761 Total short-term borrowings — — 657,731 671,030 — 1,328,761 Current maturities of long-term debt — — 39 3,107 — 3,146 Other current liabilities — 1,070 70,202 19,473 — 90,745 Total Current Liabilities 40 19,240 2,778,733 3,011,466 (6,099 ) 5,803,380 Long-Term Debt, net: Long-term debt, net — 1,309,876 18 457,366 — 1,767,260 Intercompany loan payable 1,827,084 — 2,024,935 — (3,852,019 ) — Total Long-Term Debt, net 1,827,084 1,309,876 2,024,953 457,366 (3,852,019 ) 1,767,260 Non-current tax liabilities — — 164,857 7,769 — 172,626 Deferred tax liabilities, net — — — 110,143 (2,718 ) 107,425 Other liabilities — — 360,108 236,092 — 596,200 Total Liabilities 1,827,124 1,329,116 5,328,651 3,822,836 (3,860,836 ) 8,446,891 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 4,938,797 6,759,815 5,595,831 3,228,512 (15,584,158 ) 4,938,797 Non-controlling interests — — — 71,105 — 71,105 Total Equity 4,938,797 6,759,815 5,595,831 3,299,617 (15,584,158 ) 5,009,902 Total Liabilities and Equity $ 6,765,921 $ 8,088,931 $ 10,924,482 $ 7,122,453 $ (19,444,994 ) $ 13,456,793 (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, Fannie Mae ASAP, Capital One and BofA lines of credit are pledged to JP Morgan, TD Bank, Fannie Mae, 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 March 31, 2019 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 2,966,117 $ 2,169,393 $ — $ 5,135,510 Costs and expenses: Cost of services 2,343,867 1,678,167 — 4,022,034 Operating, administrative and other 250 304 415,731 376,591 — 792,876 Depreciation and amortization — — 65,599 40,224 — 105,823 Intangible asset impairment — — 89,037 — — 89,037 Total costs and expenses 250 304 2,914,234 2,094,982 — 5,009,770 Gain on disposition of real estate — — 19,231 16 — 19,247 Operating (loss) income (250 ) (304 ) 71,114 74,427 — 144,987 Equity income from unconsolidated subsidiaries — — 71,786 878 — 72,664 Other income — — 1,680 19,173 — 20,853 Interest income — 29,259 154 1,380 (29,259 ) 1,534 Interest expense — 19,393 17,626 14,966 (29,259 ) 22,726 Write-off of financing costs on extinguished debt — 2,608 — — — 2,608 Royalty and management service expense (income) — — 6,740 (6,740 ) — — Income from consolidated subsidiaries 164,593 159,475 40,694 — (364,762 ) — Income before (benefit of) provision for income taxes 164,343 166,429 161,062 87,632 (364,762 ) 214,704 (Benefit of) provision for income taxes (66 ) 1,836 1,587 40,521 — 43,878 Net income 164,409 164,593 159,475 47,111 (364,762 ) 170,826 Less: Net income attributable to non-controlling interests — — — 6,417 — 6,417 Net income attributable to CBRE Group, Inc. $ 164,409 $ 164,593 $ 159,475 $ 40,694 $ (364,762 ) $ 164,409 Three Months Ended March 31, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Revenue $ — $ — $ 2,617,694 $ 2,056,258 $ — $ 4,673,952 Costs and expenses: Cost of services — — 2,057,613 1,562,348 — 3,619,961 Operating, administrative and other 5,704 485 360,631 365,415 — 732,235 Depreciation and amortization — — 64,309 43,856 — 108,165 Total costs and expenses 5,704 485 2,482,553 1,971,619 — 4,460,361 Gain on disposition of real estate — — 18 — — 18 Operating (loss) income (5,704 ) (485 ) 135,159 84,639 — 213,609 Equity income from unconsolidated subsidiaries — — 39,292 887 — 40,179 Other income (loss) — — 1,710 (5,990 ) — (4,280 ) Interest income — 32,686 2,452 1,169 (32,686 ) 3,621 Interest expense — 27,875 27,031 6,638 (32,686 ) 28,858 Write-off of financing costs on extinguished debt — 27,982 — — — 27,982 Royalty and management service expense (income) — — 13,171 (13,171 ) — — Income from consolidated subsidiaries 154,573 172,343 61,171 — (388,087 ) — Income before (benefit of) provision for income taxes 148,869 148,687 199,582 87,238 (388,087 ) 196,289 (Benefit of) provision for income taxes (1,419 ) (5,886 ) 27,239 26,230 — 46,164 Net income 150,288 154,573 172,343 61,008 (388,087 ) 150,125 Less: Net loss attributable to non-controlling interests — — — (163 ) — (163 ) Net income attributable to CBRE Group, Inc. $ 150,288 $ 154,573 $ 172,343 $ 61,171 $ (388,087 ) $ 150,288 |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income Three Months Ended March 31, 2019 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 164,409 $ 164,593 $ 159,475 $ 47,111 $ (364,762 ) $ 170,826 Other comprehensive income: Foreign currency translation gain — — — 937 — 937 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 410 — — — 410 Unrealized losses on interest rate swaps, net — (59 ) — — — (59 ) Unrealized holding gains on available for sale debt securities, net — — 755 — — 755 Other, net — — 1 — — 1 Total other comprehensive income — 351 756 937 — 2,044 Comprehensive income 164,409 164,944 160,231 48,048 (364,762 ) 172,870 Less: Comprehensive income attributable to non-controlling interests — — — 6,361 — 6,361 Comprehensive income attributable to CBRE Group, Inc. $ 164,409 $ 164,944 $ 160,231 $ 41,687 $ (364,762 ) $ 166,509 Three Months Ended March 31, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net income $ 150,288 $ 154,573 $ 172,343 $ 61,008 $ (388,087 ) $ 150,125 Other comprehensive income (loss): Foreign currency translation gain — — — 66,032 — 66,032 Adoption of Accounting Standards Update 2016-01, net — — (3,964 ) — — (3,964 ) Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 755 — — — 755 Unrealized gains on interest rate swaps, net — 603 — — — 603 Unrealized holding losses on available for sale debt securities, net — — (505 ) — — (505 ) Other, net — — 20 5,508 — 5,528 Total other comprehensive income (loss) — 1,358 (4,449 ) 71,540 — 68,449 Comprehensive income 150,288 155,931 167,894 132,548 (388,087 ) 218,574 Less: Comprehensive loss attributable to non-controlling interests — — — (358 ) — (358 ) Comprehensive income attributable to CBRE Group, Inc. $ 150,288 $ 155,931 $ 167,894 $ 132,906 $ (388,087 ) $ 218,932 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Consolidated Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 35,080 $ (1,398 ) $ (341,646 ) $ (93,925 ) $ (401,889 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (21,511 ) (26,154 ) (47,665 ) Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired — — (1,798 ) (344 ) (2,142 ) Contributions to unconsolidated subsidiaries — — (18,722 ) (4,840 ) (23,562 ) Distributions from unconsolidated subsidiaries — — 5,797 177 5,974 Purchase of equity securities — — (2,867 ) — (2,867 ) Proceeds from sale of equity securities — — 2,798 1,558 4,356 Proceeds from the sale of available for sale debt securities — — 603 — 603 Other investing activities, net — — 689 (10 ) 679 Net cash used in investing activities — — (35,011 ) (29,613 ) (64,624 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from senior term loans — 300,000 — — 300,000 Repayment of senior term loans — (300,000 ) — — (300,000 ) Proceeds from revolving credit facility — 507,000 — — 507,000 Repayment of revolving credit facility — (171,000 ) — — (171,000 ) Repurchase of common stock (45,088 ) — — — (45,088 ) Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) — — (16,319 ) (866 ) (17,185 ) Units repurchased for payment of taxes on equity awards (9,186 ) — — — (9,186 ) Non-controlling interest contributions — — — 40,774 40,774 Non-controlling interest distributions — — — (1,347 ) (1,347 ) Payment of financing costs — (3,353 ) — (21 ) (3,374 ) Decrease (increase) in intercompany receivables, net 19,194 (350,122 ) 194,992 135,936 — Other financing activities, net — — (10 ) (556 ) (566 ) Net cash (used in) provided by financing activities (35,080 ) (17,475 ) 178,663 173,920 300,028 Effect of currency exchange rate changes on cash and cash equivalents and restricted cash — — — (9,791 ) (9,791 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH — (18,873 ) (197,994 ) 40,591 (176,276 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD 7 34,063 274,948 554,926 863,944 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD $ 7 $ 15,190 $ 76,954 $ 595,517 $ 687,668 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 28,993 $ — $ 4,613 $ 33,606 Income taxes, net $ — $ — $ 3,197 $ 51,044 $ 54,241 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2018 Parent CBRE Services Guarantor Subsidiaries Nonguarantor Subsidiaries Consolidated Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 26,028 $ (21,075 ) $ (200,152 ) $ (54,759 ) $ (249,958 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (30,870 ) (15,854 ) (46,724 ) Contributions to unconsolidated subsidiaries — — (7,932 ) (2,679 ) (10,611 ) Distributions from unconsolidated subsidiaries — — 14,869 347 15,216 Purchase of equity securities — — (10,219 ) — (10,219 ) Proceeds from sale of equity securities — — 4,367 — 4,367 Purchase of available for sale debt securities — — (12,066 ) — (12,066 ) Proceeds from the sale of available for sale debt securities — — 2,264 — 2,264 Other investing activities, net — — (6,590 ) 151 (6,439 ) Net cash used in investing activities — — (46,177 ) (18,035 ) (64,212 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from senior term loans — 550,000 — — 550,000 Proceeds from revolving credit facility — 898,000 — — 898,000 Repayment of revolving credit facility — (435,000 ) — — (435,000 ) Repayment of 5.00% senior notes (including premium) — (820,000 ) — — (820,000 ) Acquisition of businesses (cash (paid) received for acquisitions more than three months after purchase date) — — (11,463 ) 3,414 (8,049 ) Units repurchased for payment of taxes on equity awards (4,550 ) — — — (4,550 ) Non-controlling interest contributions — — — 1,595 1,595 Non-controlling interest distributions — — — (1,025 ) (1,025 ) Payment of financing costs — (39 ) — − (39 ) (Increase) decrease in intercompany receivables, net (21,532 ) (179,368 ) 217,675 (16,775 ) — Other financing activities, net 54 — — 359 413 Net cash (used in) provided by financing activities (26,028 ) 13,593 206,212 (12,432 ) 181,345 Effect of currency exchange rate changes on cash and cash equivalents and restricted cash — — — 29,819 29,819 NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH — (7,482 ) (40,117 ) (55,407 ) (103,006 ) 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 $ 8,122 $ 74,026 $ 639,658 $ 721,813 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 48,490 $ — $ 504 $ 48,994 Income taxes, net $ — $ — $ 118 $ 37,101 $ 37,219 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncement Early Adoption [Line Items] | ||
Lease liability | $ 1,214,028 | |
Right-of-use assets | $ 998,319 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncement Early Adoption [Line Items] | ||
Lease liability | $ 1,200,000 | |
Right-of-use assets | $ 1,000,000 |
FacilitySource Acquisition - Ad
FacilitySource Acquisition - Additional Information (Detail) - USD ($) $ in Millions | Jun. 12, 2018 | Mar. 31, 2019 |
FacilitySource [Member] | ||
Business Acquisition [Line Items] | ||
Date of business purchase agreement | Jun. 12, 2018 | |
Estimated purchase price | $ 266.5 | |
Purchase price payable in cash | $ 263 | |
Blocker Corp [Member] | ||
Business Acquisition [Line Items] | ||
Blocker Units purchase from Stockholders | 1,686,013 |
Warehouse Receivables & Wareh_3
Warehouse Receivables & Warehouse Lines of Credit - Additional Information (Detail) - Warehouse Agreement Borrowings [Member] | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |
Period of repayment for warehouse lines of credit | 1 month |
Lines of credit principal outstanding | $ 2,500,000,000 |
Warehouse Receivables & Wareh_4
Warehouse Receivables & Warehouse Lines of Credit - Schedule of Warehouse Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | ||
Beginning balance at December 31, 2018 | $ 1,342,468 | |
Origination of mortgage loans | 4,646,348 | $ 3,132,008 |
Gains (premiums on loan sales) | 8,515 | |
Proceeds from sale of mortgage loans: | ||
Sale of mortgage loans | (4,445,282) | |
Cash collections of premiums on loan sales | (8,515) | |
Proceeds from sale of mortgage loans | (4,453,797) | $ (2,910,181) |
Net increase in mortgage servicing rights included in warehouse receivables | 4,715 | |
Ending balance at March 31, 2019 | $ 1,548,249 |
Warehouse Receivables & Wareh_5
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Feb. 27, 2019 | Feb. 04, 2019 | Jan. 31, 2019 | Jan. 02, 2019 | |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | ||||||
Carrying Value | $ 1,561,207,000 | $ 1,328,761,000 | ||||
Warehouse Agreement Borrowings [Member] | ||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | ||||||
Maximum Facility Size | 2,975,000,000 | 2,600,000,000 | ||||
Carrying Value | $ 1,561,207,000 | 1,328,761,000 | ||||
Warehouse Agreement Borrowings [Member] | JP Morgan [Member] | Pricing at daily one-month LIBOR plus 1.30%, maturing October 21, 2019 [Member] | ||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | ||||||
Current Maturity | Oct. 21, 2019 | |||||
Maximum Facility Size | $ 985,000,000 | 985,000,000 | ||||
Carrying Value | $ 959,921,000 | $ 871,680,000 | ||||
Line of credit over LIBOR rate | 1.30% | 1.30% | ||||
Warehouse Agreement Borrowings [Member] | JP Morgan [Member] | Pricing at daily one-month LIBOR plus 2.75%, maturing October 21, 2019 [Member] | ||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | ||||||
Current Maturity | Oct. 21, 2019 | |||||
Maximum Facility Size | $ 15,000,000 | $ 15,000,000 | ||||
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 | $ 450,000,000 | $ 575,000,000 | ||
Carrying Value | $ 123,237,000 | $ 149,089,000 | ||||
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 | $ 400,000,000 | ||||
Carrying Value | $ 260,740,000 | $ 165,945,000 | ||||
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 1.30%, maturing June 4, 2019 [Member] | ||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | ||||||
Current Maturity | Jun. 4, 2019 | |||||
Maximum Facility Size | $ 225,000,000 | $ 225,000,000 | ||||
Carrying Value | $ 184,079,000 | $ 21,852,000 | ||||
Line of credit over LIBOR rate | 1.30% | 1.30% | ||||
Warehouse Agreement Borrowings [Member] | Bank of America (BofA) [Member] | Pricing at daily one-month LIBOR plus 1.15%, maturing June 4, 2019 [Member] | ||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | ||||||
Current Maturity | Jun. 4, 2019 | |||||
Maximum Facility Size | $ 200,000,000 | $ 200,000,000 | ||||
Line of credit over LIBOR rate | 1.15% | 1.15% | ||||
Warehouse Agreement Borrowings [Member] | Capital One [Member] | Pricing at daily one-month LIBOR plus 1.35%, maturing July 27, 2019 [Member] | ||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | ||||||
Current Maturity | Jul. 27, 2019 | |||||
Maximum Facility Size | $ 700,000,000 | $ 325,000,000 | $ 200,000,000 | $ 200,000,000 | ||
Carrying Value | $ 33,230,000 | $ 120,195,000 | ||||
Line of credit over LIBOR rate | 1.35% | 1.35% |
Warehouse Receivables & Wareh_6
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Parenthetical) (Detail) - Warehouse Agreement Borrowings [Member] - USD ($) | Apr. 01, 2019 | Mar. 31, 2019 | Feb. 27, 2019 | Feb. 04, 2019 | Jan. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||
Maximum Facility Size | $ 2,975,000,000 | $ 2,600,000,000 | |||||
Capital One [Member] | Pricing at daily one-month LIBOR plus 1.35%, maturing July 27, 2019 [Member] | |||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||
Maximum Facility Size | 700,000,000 | $ 200,000,000 | $ 200,000,000 | 325,000,000 | |||
Capital One [Member] | Subsequent Event [Member] | Pricing at daily one-month LIBOR plus 1.35%, maturing July 27, 2019 [Member] | |||||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||||
Maximum Facility Size | $ 200,000,000 | ||||||
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] | |||||||
Maximum Facility Size | $ 450,000,000 | $ 450,000,000 | $ 575,000,000 | $ 450,000,000 |
Variable Interest Entities (V_3
Variable Interest Entities (VIEs) - Schedule of Maximum Exposure to Loss (Detail) - Non-Consolidated Variable Interest Entities [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 25,556 | $ 23,266 |
Other current assets | 3,940 | 3,827 |
Co-investment commitments | 21,197 | 22,363 |
Maximum exposure to loss | $ 50,693 | $ 49,456 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
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 | |
Intangible asset impairment | $ 89,000,000 | ||
4.875% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate of long-term debt | 4.875% | 4.875% | |
5.25% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate of long-term debt | 5.25% | 5.25% | |
Estimate of Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior term loans | $ 725,000,000 | $ 757,000,000 | |
Estimate of Fair Value [Member] | 4.875% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | 634,800,000 | 616,400,000 | |
Estimate of Fair Value [Member] | 5.25% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | 455,700,000 | 443,700,000 | |
Actually Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior term loans | 744,000,000 | 751,300,000 | |
Actually Carrying Value [Member] | 4.875% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | 593,000,000 | 592,800,000 | |
Actually Carrying Value [Member] | 5.25% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | 422,800,000 | $ 422,700,000 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Intangible asset impairment | $ 89,037,000 | ||
Assets, fair value disclosure, nonrecurring | 0 | ||
Liabilities, fair value disclosure, nonrecurring | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warehouse receivables | $ 1,548,249 | $ 1,342,468 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 48,531 | 48,776 |
Equity securities | 210,160 | 153,762 |
Warehouse receivables | 1,548,249 | 1,342,468 |
Total assets at fair value | 1,806,940 | 1,545,006 |
Interest rate swaps | 736 | 1,070 |
Securities sold, not yet purchased | 4,189 | 3,133 |
Total liabilities at fair value | 4,925 | 4,203 |
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 | 3,189 | 3,138 |
Equity securities | 210,160 | 153,762 |
Total assets at fair value | 213,349 | 156,900 |
Securities sold, not yet purchased | 4,189 | 3,133 |
Total liabilities at fair value | 4,189 | 3,133 |
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 | 45,342 | 45,638 |
Warehouse receivables | 1,548,249 | 1,342,468 |
Total assets at fair value | 1,593,591 | 1,388,106 |
Interest rate swaps | 736 | 1,070 |
Total liabilities at fair value | 736 | 1,070 |
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 | 3,189 | 3,138 |
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 | 3,189 | 3,138 |
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 | 11,167 | 11,196 |
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 | 11,167 | 11,196 |
Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 27,041 | 27,201 |
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 | 27,041 | 27,201 |
Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 4,897 | 5,017 |
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 | 4,897 | 5,017 |
Recurring [Member] | Collateralized mortgage obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 2,237 | 2,224 |
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 | $ 2,237 | $ 2,224 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Non-Recurring Fair Value Measurement (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other intangible assets, net of accumulated amortization of $1,229,297 and $1,180,393 at March 31, 2019 and December 31, 2018, respectively | $ 1,338,646 | $ 1,441,308 |
Other intangible assets, Total Impairment Charges | 89,000 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other intangible assets, net of accumulated amortization of $1,229,297 and $1,180,393 at March 31, 2019 and December 31, 2018, respectively | 16,000 | |
Other intangible assets, Total Impairment Charges | 89,037 | |
Fair Value, Measurements, Nonrecurring [Member] | Level3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other intangible assets, Fair Value Measured and Recorded Using | $ 16,000 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Abstract] | |
Goodwill impairment | $ 0 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Goodwill by Segment (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill Gross, Beginning | $ 4,720,815 |
Accumulated impairment losses | (1,068,506) |
Goodwill, Net of impairment losses | 3,652,309 |
Purchase accounting entries | 7,226 |
Foreign exchange movement | 4,347 |
Goodwill Gross, Ending | 4,732,388 |
Accumulated impairment losses | (1,068,506) |
Goodwill, Net of impairment losses | 3,663,882 |
Advisory Services [Member] | |
Goodwill [Line Items] | |
Goodwill Gross, Beginning | 3,269,954 |
Accumulated impairment losses | (761,448) |
Goodwill, Net of impairment losses | 2,508,506 |
Purchase accounting entries | 7,518 |
Foreign exchange movement | (1,608) |
Goodwill Gross, Ending | 3,275,864 |
Accumulated impairment losses | (761,448) |
Goodwill, Net of impairment losses | 2,514,416 |
Global Workplace Solutions [Member] | |
Goodwill [Line Items] | |
Goodwill Gross, Beginning | 875,570 |
Accumulated impairment losses | (175,473) |
Goodwill, Net of impairment losses | 700,097 |
Purchase accounting entries | (292) |
Foreign exchange movement | 7,289 |
Goodwill Gross, Ending | 882,567 |
Accumulated impairment losses | (175,473) |
Goodwill, Net of impairment losses | 707,094 |
Real Estate Investments [Member] | |
Goodwill [Line Items] | |
Goodwill Gross, Beginning | 575,291 |
Accumulated impairment losses | (131,585) |
Goodwill, Net of impairment losses | 443,706 |
Foreign exchange movement | (1,334) |
Goodwill Gross, Ending | 573,957 |
Accumulated impairment losses | (131,585) |
Goodwill, Net of impairment losses | $ 442,372 |
Investments In Unconsolidated_3
Investments In Unconsolidated Subsidiaries - Additional information (Detail) | Mar. 31, 2019 |
Maximum [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 50.00% |
Investments in Unconsolidated_4
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Financial Information of Equity Method Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | ||
Revenue | $ 365,125 | $ 343,199 |
Operating income | 94,621 | 136,208 |
Net income | $ 48,928 | $ 93,996 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,774,469 | $ 1,784,921 |
Less: current maturities of long-term debt | (2,573) | (3,146) |
Less: unamortized debt issuance costs | (11,715) | (14,515) |
Total long-term debt, net of current maturities | 1,760,181 | 1,767,260 |
Senior secured term loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 748,632 | 758,452 |
Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 2,998 | 3,682 |
4.875% Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 596,750 | 596,653 |
5.25% Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 426,089 | $ 426,134 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Senior secured term loans [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt, end | Dec. 31, 2024 | Dec. 31, 2024 |
Senior secured term loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 0.75% | 0.75% |
Senior secured term loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 3.49% | 3.49% |
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 | 2026 | 2026 |
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 | 2025 | 2025 |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings - Long-Term Debt - Additional Information (Detail) | Oct. 31, 2017USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018 | Dec. 20, 2018EUR (€) |
Debt Instrument [Line Items] | ||||||
Borrowings from line of credit | $ 507,000,000 | $ 898,000,000 | ||||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 200.00% | |||||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 425.00% | |||||
Maximum leverage ratio during first four quarter that qualified acquisition is consummated | 475.00% | |||||
Coverage ratio of EBITDA to total interest expense expressed in percentage | 2274.00% | 2274.00% | ||||
Leverage ratio of total debt less available cash to EBITDA expressed in percentage | 80.00% | 80.00% | ||||
4.875% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of long-term debt | 4.875% | 4.875% | 4.875% | |||
5.25% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of long-term debt | 5.25% | 5.25% | 5.25% | |||
Tranche A term loan facility [Member] | 2017 Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term loan facility due and payable | € | € 400,000,000 | |||||
Borrowings from line of credit | $ 300,000,000 | |||||
Amounts available to borrow under Credit Agreement | $ 750,000,000 | |||||
Termination date | Oct. 31, 2022 | |||||
Maximum leverage ratio | 250.00% | |||||
Tranche A term loan facility [Member] | 2019 Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amounts available to borrow under Credit Agreement | $ 300,000,000 | |||||
Termination date | Mar. 4, 2024 | |||||
Maximum leverage ratio | 250.00% | |||||
Revolving credit facility [Member] | 2017 Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amounts available to borrow under Credit Agreement | $ 2,800,000,000 | |||||
Termination date | Oct. 31, 2022 | |||||
Revolving credit facility [Member] | 2019 Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amounts available to borrow under Credit Agreement | $ 2,800,000,000 | |||||
Termination date | Mar. 4, 2024 | |||||
Euro term loan facility [Member] | 2017 Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term loan facility due and payable | € | € 400,000,000 | |||||
Debt instrument, maturity date | Dec. 20, 2023 | |||||
Euro term loan facility [Member] | 2019 Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term loan facility due and payable | € | € 400,000,000 | |||||
Debt instrument, maturity date | Dec. 20, 2023 |
Long-Term Debt and Short-Term_6
Long-Term Debt and Short-Term Borrowings - Revolving Credit Facility - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 336,000,000 | |
Letters of credit outstanding amount | 74,900,000 | |
2019 Credit Agreement [Member] | Revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Amounts available to borrow under Credit Agreement | 2,800,000,000 | |
Revolving credit facility | 336,000,000 | |
Letters of credit outstanding amount | $ 2,000,000 | |
2019 Credit Agreement [Member] | Revolving credit facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Credit Agreement applicable fixed rate spread | 0.68% | |
Credit Agreement applicable daily rate spread | 0.00% | |
2019 Credit Agreement [Member] | Revolving credit facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Credit Agreement applicable fixed rate spread | 1.075% | |
Credit Agreement applicable daily rate spread | 0.075% | |
2019 Credit Agreement [Member] | Canadian, Australian and New Zealand subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Amounts available to borrow under Credit Agreement | $ 200,000,000 | |
2019 Credit Agreement [Member] | U.K. subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Amounts available to borrow under Credit Agreement | 300,000,000 | |
2017 Credit Agreement [Member] | Revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Amounts available to borrow under Credit Agreement | $ 2,800,000,000 | |
Revolving credit facility | $ 0 | |
Letters of credit outstanding amount | $ 2,000,000 | |
2017 Credit Agreement [Member] | Revolving credit facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Credit Agreement applicable fixed rate spread | 0.775% | |
Credit Agreement applicable daily rate spread | 0.00% | |
2017 Credit Agreement [Member] | Revolving credit facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Credit Agreement applicable fixed rate spread | 1.075% | |
Credit Agreement applicable daily rate spread | 0.075% | |
2017 Credit Agreement [Member] | Canadian, Australian and New Zealand subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Amounts available to borrow under Credit Agreement | $ 200,000,000 | |
2017 Credit Agreement [Member] | U.K. subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Amounts available to borrow under Credit Agreement | $ 300,000,000 |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Maximum [Member] | |
Lease Cost [Line Items] | |
Lessee, lease term extension period | 10 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Assets | |
Operating lease assets | $ 938,681 |
Financing lease assets | $ 59,638 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Total leased assets | $ 998,319 |
Current: | |
Operating | 185,457 |
Financing | $ 25,007 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Non-current: | |
Operating | $ 969,216 |
Financing | $ 34,348 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Total lease liabilities | $ 1,214,028 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Costs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease cost: | |
Amortization of right-to-use assets | $ 7,169 |
Variable lease cost | 16,947 |
Total lease cost | 70,808 |
Operating, administrative and other costs [Member] | |
Lease Cost [Line Items] | |
Operating lease cost | 46,728 |
Interest expense [Member] | |
Finance lease cost: | |
Interest on lease liabilities | 204 |
Revenue [Member] | |
Finance lease cost: | |
Sublease income | $ (240) |
Leases - Schedule of Componen_2
Leases - Schedule of Components of Lease Costs (Parenthetical) (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease Cost [Line Items] | |
Amortization costs | $ 7,169 |
Variable lease costs | 16,947 |
Cost of Services [Member] | |
Lease Cost [Line Items] | |
Amortization costs | 5,900 |
Variable lease costs | 3,100 |
Depreciation and Amortization [Member] | |
Lease Cost [Line Items] | |
Amortization costs | 1,300 |
Operating, Administrative and Other Costs [Member] | |
Lease Cost [Line Items] | |
Variable lease costs | $ 13,800 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases (Detail) | Mar. 31, 2019 |
Weighted-average remaining lease term: | |
Operating leases | 9 years |
Finance leases | 3 years |
Weighted-average discount rate: | |
Operating leases | 3.40% |
Finance leases | 2.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 | $ 140,874 |
2020 | 183,229 |
2021 | 177,613 |
2022 | 152,999 |
2023 | 133,500 |
Thereafter | 550,913 |
Total remaining lease payments at March 31, 2019 | 1,339,128 |
Less: Interest | 184,455 |
Present value of lease liabilities at March 31, 2019 | 1,154,673 |
Finance Leases | |
2019 | 19,571 |
2020 | 20,948 |
2021 | 13,342 |
2022 | 6,134 |
2023 | 1,286 |
Thereafter | 25 |
Total remaining lease payments at March 31, 2019 | 61,306 |
Less: Interest | 1,951 |
Present value of lease liabilities at March 31, 2019 | $ 59,355 |
Leases - Schedule by Year of Fu
Leases - Schedule by Year of Future Minimum Lease Payments for Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 238,954 |
2020 | 219,351 |
2021 | 202,205 |
2022 | 172,267 |
2023 | 145,705 |
Thereafter | 510,741 |
Total minimum payment required | $ 1,489,223 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 35,573 |
Operating cash flows from financing leases | 279 |
Financing cash flows from financing leases | 7,414 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 47,467 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 2,668 |
Other non-cash increases in right-of-use assets | $ 1,372 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 74,900,000 | |
Accrued loan loss | 40,300,000 | $ 37,900,000 |
Assets available for recourse | 618,200,000 | |
Warehouse receivables | $ 331,400,000 | |
Letters of credit expiration date | 2020-02 | |
Guarantees total | $ 62,300,000 | |
Commitments to investment in future real estate investment | 49,100,000 | |
Commitments to investment in unconsolidated real estate subsidiary | $ 50,300,000 | |
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 | $ 24,700,000,000 | |
Letters of credit outstanding | 64,000,000 | 64,000,000 |
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 | $ 69,000,000 |
Income Per Share and Stockhol_3
Income Per Share and Stockholders' Equity - Calculations of Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic Income Per Share | ||
Net income attributable to CBRE Group, Inc. shareholders | $ 164,409 | $ 150,288 |
Weighted average shares outstanding for basic income per share | 336,020,431 | 338,890,098 |
Basic income per share attributable to CBRE Group, Inc. shareholders | $ 0.49 | $ 0.44 |
Diluted Income Per Share | ||
Net income attributable to CBRE Group, Inc. shareholders | $ 164,409 | $ 150,288 |
Weighted average shares outstanding for basic income per share | 336,020,431 | 338,890,098 |
Dilutive effect of contingently issuable shares | 4,137,968 | 3,698,143 |
Dilutive effect of stock options | 1,569 | |
Weighted average shares outstanding for diluted income per share | 340,158,399 | 342,589,810 |
Diluted income per share attributable to CBRE Group, Inc. shareholders | $ 0.48 | $ 0.44 |
Income Per Share and Stockhol_4
Income Per Share and Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2019 | Jan. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Oct. 27, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Shares repurchased during the period, shares | 3,980,656 | |||||
Shares repurchased during the period, value | $ 45,088,000 | $ 161,000,000 | ||||
Payments for repurchase of additional shares | $ 45,088,000 | |||||
Class A Common Stock [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Authorized share repurchase term | 3 years | 3 years | ||||
Shares repurchased during the period, value | $ 11,000 | |||||
Average price per share | $ 39.38 | $ 40.43 | ||||
Payments for repurchase of additional shares | $ 45,100,000 | |||||
Shares repurchased during the period | 1,144,449 | |||||
Class A Common Stock [Member] | Maximum [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Authorized share repurchase amount | $ 300,000,000 | $ 250,000,000 | ||||
Contingently Issuable Shares [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Shares excluded in computation of diluted income per share | 547,676 | 69,346 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 4,999,172 | $ 4,554,403 |
Total revenue | 136,338 | 119,549 |
Total revenue | 5,135,510 | 4,673,952 |
Advisory Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,698,064 | 1,579,885 |
Total revenue | 136,338 | 119,549 |
Total revenue | 1,834,402 | 1,699,434 |
Global Workplace Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 3,165,915 | 2,827,503 |
Total revenue | 3,165,915 | 2,827,503 |
Real Estate Investments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 135,193 | 147,015 |
Total revenue | 135,193 | 147,015 |
Global Workplace Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 3,165,915 | 2,827,503 |
Global Workplace Solutions [Member] | Global Workplace Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 3,165,915 | 2,827,503 |
Advisory Leasing [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 622,640 | 517,509 |
Advisory Leasing [Member] | Advisory Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 622,640 | 517,509 |
Advisory Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 385,655 | 413,732 |
Advisory Sales [Member] | Advisory Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 385,655 | 413,732 |
Property and Advisory Project Management [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 520,884 | 484,782 |
Property and Advisory Project Management [Member] | Advisory Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 520,884 | 484,782 |
Valuation [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 138,326 | 134,163 |
Valuation [Member] | Advisory Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 138,326 | 134,163 |
Commercial Mortgage Origination [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 23,573 | 24,282 |
Total revenue | 97,306 | 83,152 |
Commercial Mortgage Origination [Member] | Advisory Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 23,573 | 24,282 |
Total revenue | 97,306 | 83,152 |
Loan Servicing [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,986 | 5,417 |
Total revenue | 39,032 | 36,397 |
Loan Servicing [Member] | Advisory Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,986 | 5,417 |
Total revenue | 39,032 | 36,397 |
Investment Management [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 106,308 | 123,690 |
Investment Management [Member] | Real Estate Investments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 106,308 | 123,690 |
Development Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 28,885 | 23,325 |
Development Services [Member] | Real Estate Investments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 28,885 | $ 23,325 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 412,400 | $ 381,800 |
Contract assets, current | 295,403 | 307,020 |
Contract liabilities | 126,000 | 92,500 |
Contract liabilities, current | 115,137 | $ 82,227 |
Recognized revenue included in contract liability | $ 61,800 |
Segments - Additional Informati
Segments - Additional Information (Detail) | Jan. 01, 2019Segment |
Segment Reporting [Abstract] | |
Global business segments | 3 |
Segments - Summarized Financial
Segments - Summarized Financial Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 5,135,510 | $ 4,673,952 |
Adjusted EBITDA | 450,032 | 347,807 |
Advisory Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,834,402 | 1,699,434 |
Adjusted EBITDA | 263,850 | 215,432 |
Global Workplace Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,165,915 | 2,827,503 |
Adjusted EBITDA | 99,679 | 82,735 |
Real Estate Investments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 135,193 | 147,015 |
Adjusted EBITDA | $ 86,503 | $ 49,640 |
Segments - Adjusted EBITDA Calc
Segments - Adjusted EBITDA Calculation by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting [Abstract] | ||
Net income attributable to CBRE Group, Inc. | $ 164,409 | $ 150,288 |
Depreciation and amortization | 105,823 | 108,165 |
Intangible asset impairment | 89,037 | |
Interest expense | 22,726 | 28,858 |
Write-off of financing costs on extinguished debt | 2,608 | 27,982 |
Provision for income taxes | 43,878 | 46,164 |
Interest income | 1,534 | 3,621 |
EBITDA | 426,947 | 357,836 |
Costs associated with our reorganization, including cost-savings initiatives | 15,749 | |
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue | 7,336 | (10,029) |
Adjusted EBITDA | $ 450,032 | $ 347,807 |
Segments - Summary of Geographi
Segments - Summary of Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 5,135,510 | $ 4,673,952 |
United States [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 3,036,707 | 2,674,217 |
United Kingdom [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 588,581 | 580,516 |
All other countries [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 1,510,222 | $ 1,419,219 |
Guarantor and Nonguarantor Fi_3
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 604,952 | $ 777,219 | ||
Restricted cash | 82,716 | 86,725 | ||
Receivables, net | 3,801,474 | 3,668,591 | ||
Warehouse receivables | 1,548,249 | 1,342,468 | ||
Contract assets | 295,403 | 307,020 | ||
Prepaid expenses | 248,359 | 254,892 | ||
Income taxes receivable | 58,337 | 71,684 | ||
Other current assets | 357,370 | 245,611 | ||
Total Current Assets | 6,996,860 | 6,754,210 | ||
Property and equipment, net | 730,450 | 721,692 | ||
Goodwill | 3,663,882 | 3,652,309 | ||
Other intangible assets, net | 1,338,646 | 1,441,308 | ||
Operating lease assets | 938,681 | |||
Investments in unconsolidated subsidiaries | 228,406 | 216,174 | ||
Deferred tax assets, net | 80,537 | 51,703 | ||
Other assets, net | 715,546 | 619,397 | ||
Total Assets | 14,693,008 | 13,456,793 | ||
Accounts payable and accrued expenses | 1,833,841 | 1,919,827 | ||
Compensation and employee benefits payable | 1,152,035 | 1,121,179 | ||
Accrued bonus and profit sharing | 656,123 | 1,189,395 | ||
Operating lease liabilities | 185,457 | |||
Contract liabilities | 115,137 | 82,227 | ||
Income taxes payable | 53,795 | 68,100 | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,561,207 | 1,328,761 | ||
Revolving credit facility | 336,000 | |||
Total short-term borrowings | 1,897,207 | 1,328,761 | ||
Current maturities of long-term debt | 2,573 | 3,146 | ||
Other current liabilities | 113,914 | 90,745 | ||
Total Current Liabilities | 6,010,082 | 5,803,380 | ||
Long-term debt, net | 1,760,181 | 1,767,260 | ||
Total Long-Term Debt, net | 1,760,181 | 1,767,260 | ||
Non-current operating lease liabilities | 969,216 | |||
Non-current tax liabilities | 175,139 | 172,626 | ||
Deferred tax liabilities, net | 126,384 | 107,425 | ||
Other liabilities | 447,790 | 596,200 | ||
Total Liabilities | 9,488,792 | 8,446,891 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 5,089,379 | 4,938,797 | ||
Non-controlling interests | 114,837 | 71,105 | ||
Total Equity | 5,204,216 | 5,009,902 | $ 4,418,674 | $ 4,174,614 |
Total Liabilities and Equity | 14,693,008 | 13,456,793 | ||
Eliminations [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Income taxes receivable | (66) | (6,099) | ||
Total Current Assets | (66) | (6,099) | ||
Investments in consolidated subsidiaries | (16,376,081) | (15,584,158) | ||
Intercompany loan receivable | (3,890,764) | (3,852,019) | ||
Deferred tax assets, net | (2,666) | (2,718) | ||
Total Assets | (20,269,577) | (19,444,994) | ||
Income taxes payable | (66) | (6,099) | ||
Total Current Liabilities | (66) | (6,099) | ||
Intercompany loan payable | (3,890,764) | (3,852,019) | ||
Total Long-Term Debt, net | (3,890,764) | (3,852,019) | ||
Deferred tax liabilities, net | (2,666) | (2,718) | ||
Total Liabilities | (3,893,496) | (3,860,836) | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | (16,376,081) | (15,584,158) | ||
Total Equity | (16,376,081) | (15,584,158) | ||
Total Liabilities and Equity | (20,269,577) | (19,444,994) | ||
Parent [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 7 | 7 | ||
Income taxes receivable | 66 | 6,099 | ||
Total Current Assets | 73 | 6,106 | ||
Investments in consolidated subsidiaries | 6,968,219 | 6,759,815 | ||
Total Assets | 6,968,292 | 6,765,921 | ||
Accounts payable and accrued expenses | 40 | |||
Total Current Liabilities | 40 | |||
Intercompany loan payable | 1,878,913 | 1,827,084 | ||
Total Long-Term Debt, net | 1,878,913 | 1,827,084 | ||
Total Liabilities | 1,878,913 | 1,827,124 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 5,089,379 | 4,938,797 | ||
Total Equity | 5,089,379 | 4,938,797 | ||
Total Liabilities and Equity | 6,968,292 | 6,765,921 | ||
CBRE Services [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 15,190 | 34,063 | ||
Receivables, net | 10 | 5 | ||
Total Current Assets | 15,200 | 34,068 | ||
Investments in consolidated subsidiaries | 6,051,334 | 5,595,831 | ||
Intercompany loan receivable | 2,538,410 | 2,440,775 | ||
Other assets, net | 19,941 | 18,257 | ||
Total Assets | 8,624,885 | 8,088,931 | ||
Accounts payable and accrued expenses | 5,488 | 17,450 | ||
Income taxes payable | 1,836 | 720 | ||
Revolving credit facility | 336,000 | |||
Total short-term borrowings | 336,000 | |||
Other current liabilities | 736 | 1,070 | ||
Total Current Liabilities | 344,060 | 19,240 | ||
Long-term debt, net | 1,312,606 | 1,309,876 | ||
Total Long-Term Debt, net | 1,312,606 | 1,309,876 | ||
Total Liabilities | 1,656,666 | 1,329,116 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 6,968,219 | 6,759,815 | ||
Total Equity | 6,968,219 | 6,759,815 | ||
Total Liabilities and Equity | 8,624,885 | 8,088,931 | ||
Guarantor Subsidiaries [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 65,783 | 261,181 | ||
Restricted cash | 11,171 | 13,767 | ||
Receivables, net | 1,503,057 | 1,340,120 | ||
Warehouse receivables | 1,213,477 | 664,095 | ||
Contract assets | 281,050 | 289,214 | ||
Prepaid expenses | 96,466 | 122,305 | ||
Income taxes receivable | 10,963 | 18,992 | ||
Other current assets | 84,803 | 56,853 | ||
Total Current Assets | 3,266,770 | 2,766,527 | ||
Property and equipment, net | 505,238 | 512,110 | ||
Goodwill | 2,230,867 | 2,224,909 | ||
Other intangible assets, net | 731,373 | 835,270 | ||
Operating lease assets | 417,139 | |||
Investments in unconsolidated subsidiaries | 178,665 | 170,698 | ||
Investments in consolidated subsidiaries | 3,356,528 | 3,228,512 | ||
Intercompany loan receivable | 700,000 | 700,000 | ||
Deferred tax assets, net | 2,666 | 2,666 | ||
Other assets, net | 546,378 | 483,790 | ||
Total Assets | 11,935,624 | 10,924,482 | ||
Accounts payable and accrued expenses | 640,173 | 655,582 | ||
Compensation and employee benefits payable | 644,534 | 662,196 | ||
Accrued bonus and profit sharing | 293,151 | 685,521 | ||
Operating lease liabilities | 92,045 | |||
Contract liabilities | 72,660 | 41,045 | ||
Income taxes payable | 551 | 6,417 | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,201,563 | 657,731 | ||
Total short-term borrowings | 1,201,563 | 657,731 | ||
Current maturities of long-term debt | 29 | 39 | ||
Other current liabilities | 77,336 | 70,202 | ||
Total Current Liabilities | 3,022,042 | 2,778,733 | ||
Long-term debt, net | 12 | 18 | ||
Intercompany loan payable | 2,011,851 | 2,024,935 | ||
Total Long-Term Debt, net | 2,011,863 | 2,024,953 | ||
Non-current operating lease liabilities | 463,787 | |||
Non-current tax liabilities | 142,712 | 164,857 | ||
Deferred tax liabilities, net | 11,905 | |||
Other liabilities | 231,981 | 360,108 | ||
Total Liabilities | 5,884,290 | 5,328,651 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 6,051,334 | 5,595,831 | ||
Total Equity | 6,051,334 | 5,595,831 | ||
Total Liabilities and Equity | 11,935,624 | 10,924,482 | ||
Nonguarantor Subsidiaries [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 523,972 | 481,968 | ||
Restricted cash | 71,545 | 72,958 | ||
Receivables, net | 2,298,407 | 2,328,466 | ||
Warehouse receivables | 334,772 | 678,373 | ||
Contract assets | 14,353 | 17,806 | ||
Prepaid expenses | 151,893 | 132,587 | ||
Income taxes receivable | 47,374 | 52,692 | ||
Other current assets | 272,567 | 188,758 | ||
Total Current Assets | 3,714,883 | 3,953,608 | ||
Property and equipment, net | 225,212 | 209,582 | ||
Goodwill | 1,433,015 | 1,427,400 | ||
Other intangible assets, net | 607,273 | 606,038 | ||
Operating lease assets | 521,542 | |||
Investments in unconsolidated subsidiaries | 49,741 | 45,476 | ||
Intercompany loan receivable | 652,354 | 711,244 | ||
Deferred tax assets, net | 80,537 | 51,755 | ||
Other assets, net | 149,227 | 117,350 | ||
Total Assets | 7,433,784 | 7,122,453 | ||
Accounts payable and accrued expenses | 1,188,180 | 1,246,755 | ||
Compensation and employee benefits payable | 507,501 | 458,983 | ||
Accrued bonus and profit sharing | 362,972 | 503,874 | ||
Operating lease liabilities | 93,412 | |||
Contract liabilities | 42,477 | 41,182 | ||
Income taxes payable | 51,474 | 67,062 | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 359,644 | 671,030 | ||
Total short-term borrowings | 359,644 | 671,030 | ||
Current maturities of long-term debt | 2,544 | 3,107 | ||
Other current liabilities | 35,842 | 19,473 | ||
Total Current Liabilities | 2,644,046 | 3,011,466 | ||
Long-term debt, net | 447,563 | 457,366 | ||
Total Long-Term Debt, net | 447,563 | 457,366 | ||
Non-current operating lease liabilities | 505,429 | |||
Non-current tax liabilities | 32,427 | 7,769 | ||
Deferred tax liabilities, net | 117,145 | 110,143 | ||
Other liabilities | 215,809 | 236,092 | ||
Total Liabilities | 3,962,419 | 3,822,836 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 3,356,528 | 3,228,512 | ||
Non-controlling interests | 114,837 | 71,105 | ||
Total Equity | 3,471,365 | 3,299,617 | ||
Total Liabilities and Equity | $ 7,433,784 | $ 7,122,453 |
Guarantor and Nonguarantor Fi_4
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Balance Sheets (Parenthetical) (Detail) | Mar. 31, 2019 | Dec. 31, 2018 |
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% |
Guarantor and Nonguarantor Fi_5
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||
Revenue | $ 5,135,510 | $ 4,673,952 |
Cost of services | 4,022,034 | 3,619,961 |
Operating, administrative and other | 792,876 | 732,235 |
Depreciation and amortization | 105,823 | 108,165 |
Intangible asset impairment | 89,037 | |
Total costs and expenses | 5,009,770 | 4,460,361 |
Gain on disposition of real estate | 19,247 | 18 |
Operating income | 144,987 | 213,609 |
Equity income from unconsolidated subsidiaries | 72,664 | 40,179 |
Other income (loss) | 20,853 | (4,280) |
Interest income | 1,534 | 3,621 |
Interest expense | 22,726 | 28,858 |
Write-off of financing costs on extinguished debt | 2,608 | 27,982 |
Income before provision for income taxes | 214,704 | 196,289 |
(Benefit of) provision for income taxes | 43,878 | 46,164 |
Net income | 170,826 | 150,125 |
Less: Net income attributable to non-controlling interests | 6,417 | (163) |
Net income attributable to CBRE Group, Inc. | 164,409 | 150,288 |
Eliminations [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Interest income | (29,259) | (32,686) |
Interest expense | (29,259) | (32,686) |
Income from consolidated subsidiaries | (364,762) | (388,087) |
Income before provision for income taxes | (364,762) | (388,087) |
Net income | (364,762) | (388,087) |
Net income attributable to CBRE Group, Inc. | (364,762) | (388,087) |
Parent [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Operating, administrative and other | 250 | 5,704 |
Total costs and expenses | 250 | 5,704 |
Operating income | (250) | (5,704) |
Income from consolidated subsidiaries | 164,593 | 154,573 |
Income before provision for income taxes | 164,343 | 148,869 |
(Benefit of) provision for income taxes | (66) | (1,419) |
Net income | 164,409 | 150,288 |
Net income attributable to CBRE Group, Inc. | 164,409 | 150,288 |
CBRE Services [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Operating, administrative and other | 304 | 485 |
Total costs and expenses | 304 | 485 |
Operating income | (304) | (485) |
Interest income | 29,259 | 32,686 |
Interest expense | 19,393 | 27,875 |
Write-off of financing costs on extinguished debt | 2,608 | 27,982 |
Income from consolidated subsidiaries | 159,475 | 172,343 |
Income before provision for income taxes | 166,429 | 148,687 |
(Benefit of) provision for income taxes | 1,836 | (5,886) |
Net income | 164,593 | 154,573 |
Net income attributable to CBRE Group, Inc. | 164,593 | 154,573 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenue | 2,966,117 | 2,617,694 |
Cost of services | 2,343,867 | 2,057,613 |
Operating, administrative and other | 415,731 | 360,631 |
Depreciation and amortization | 65,599 | 64,309 |
Intangible asset impairment | 89,037 | |
Total costs and expenses | 2,914,234 | 2,482,553 |
Gain on disposition of real estate | 19,231 | 18 |
Operating income | 71,114 | 135,159 |
Equity income from unconsolidated subsidiaries | 71,786 | 39,292 |
Other income (loss) | 1,680 | 1,710 |
Interest income | 154 | 2,452 |
Interest expense | 17,626 | 27,031 |
Royalty and management service expense (income) | 6,740 | 13,171 |
Income from consolidated subsidiaries | 40,694 | 61,171 |
Income before provision for income taxes | 161,062 | 199,582 |
(Benefit of) provision for income taxes | 1,587 | 27,239 |
Net income | 159,475 | 172,343 |
Net income attributable to CBRE Group, Inc. | 159,475 | 172,343 |
Nonguarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenue | 2,169,393 | 2,056,258 |
Cost of services | 1,678,167 | 1,562,348 |
Operating, administrative and other | 376,591 | 365,415 |
Depreciation and amortization | 40,224 | 43,856 |
Total costs and expenses | 2,094,982 | 1,971,619 |
Gain on disposition of real estate | 16 | |
Operating income | 74,427 | 84,639 |
Equity income from unconsolidated subsidiaries | 878 | 887 |
Other income (loss) | 19,173 | (5,990) |
Interest income | 1,380 | 1,169 |
Interest expense | 14,966 | 6,638 |
Royalty and management service expense (income) | (6,740) | (13,171) |
Income before provision for income taxes | 87,632 | 87,238 |
(Benefit of) provision for income taxes | 40,521 | 26,230 |
Net income | 47,111 | 61,008 |
Less: Net income attributable to non-controlling interests | 6,417 | (163) |
Net income attributable to CBRE Group, Inc. | $ 40,694 | $ 61,171 |
Guarantor and Nonguarantor Fi_6
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||
Net income | $ 170,826 | $ 150,125 |
Foreign currency translation gain | 937 | 66,032 |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 410 | 755 |
Unrealized (losses) gains on interest rate swaps, net of tax | (59) | 603 |
Unrealized holding gains (losses) on available for sale debt securities, net of tax | 755 | (505) |
Other, net | 1 | 5,528 |
Total other comprehensive income (loss) | 2,044 | 68,449 |
Comprehensive income | 172,870 | 218,574 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 6,361 | (358) |
Comprehensive income attributable to CBRE Group, Inc. | 166,509 | 218,932 |
Eliminations [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | (364,762) | (388,087) |
Comprehensive income | (364,762) | (388,087) |
Comprehensive income attributable to CBRE Group, Inc. | (364,762) | (388,087) |
Accounting Standards Update 2016-01 | ||
Condensed Statement of Income Captions [Line Items] | ||
Adoption of Accounting Standards Update 2016-01, net | (3,964) | |
Parent [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 164,409 | 150,288 |
Comprehensive income | 164,409 | 150,288 |
Comprehensive income attributable to CBRE Group, Inc. | 164,409 | 150,288 |
CBRE Services [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 164,593 | 154,573 |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 410 | 755 |
Unrealized (losses) gains on interest rate swaps, net of tax | (59) | 603 |
Total other comprehensive income (loss) | 351 | 1,358 |
Comprehensive income | 164,944 | 155,931 |
Comprehensive income attributable to CBRE Group, Inc. | 164,944 | 155,931 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 159,475 | 172,343 |
Unrealized holding gains (losses) on available for sale debt securities, net of tax | 755 | (505) |
Other, net | 1 | 20 |
Total other comprehensive income (loss) | 756 | (4,449) |
Comprehensive income | 160,231 | 167,894 |
Comprehensive income attributable to CBRE Group, Inc. | 160,231 | 167,894 |
Guarantor Subsidiaries [Member] | Accounting Standards Update 2016-01 | Reportable Legal Entities [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Adoption of Accounting Standards Update 2016-01, net | (3,964) | |
Nonguarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 47,111 | 61,008 |
Foreign currency translation gain | 937 | 66,032 |
Other, net | 5,508 | |
Total other comprehensive income (loss) | 937 | 71,540 |
Comprehensive income | 48,048 | 132,548 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 6,361 | (358) |
Comprehensive income attributable to CBRE Group, Inc. | $ 41,687 | $ 132,906 |
Guarantor and Nonguarantor Fi_7
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | $ (401,889) | $ (249,958) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (47,665) | (46,724) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (2,142) | |
Contributions to unconsolidated subsidiaries | (23,562) | (10,611) |
Distributions from unconsolidated subsidiaries | 5,974 | 15,216 |
Purchase of equity securities | (2,867) | (10,219) |
Proceeds from sale of equity securities | 4,356 | 4,367 |
Purchase of available for sale debt securities | (12,066) | |
Proceeds from the sale of available for sale debt securities | 603 | 2,264 |
Other investing activities, net | 679 | (6,439) |
Net cash used in investing activities | (64,624) | (64,212) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from senior term loans | 300,000 | 550,000 |
Repayment of senior term loans | (300,000) | |
Proceeds from revolving credit facility | 507,000 | 898,000 |
Repayment of revolving credit facility | (171,000) | (435,000) |
Repayment of 5.00% senior notes (including premium) | (820,000) | |
Repurchase of common stock | (45,088) | |
Acquisition of businesses (cash (paid) received for acquisitions more than three months after purchase date) | (17,185) | (8,049) |
Units repurchased for payment of taxes on equity awards | (9,186) | (4,550) |
Non-controlling interest contributions | 40,774 | 1,595 |
Non-controlling interest distributions | (1,347) | (1,025) |
Payment of financing costs | (3,374) | (39) |
Other financing activities, net | (566) | 413 |
Net cash (used in) provided by financing activities | 300,028 | 181,345 |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (9,791) | 29,819 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (176,276) | (103,006) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 863,944 | 824,819 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 687,668 | 721,813 |
Cash paid during the period for: | ||
Interest | 33,606 | 48,994 |
Income taxes, net | 54,241 | 37,219 |
Parent [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 35,080 | 26,028 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock | (45,088) | |
Units repurchased for payment of taxes on equity awards | (9,186) | (4,550) |
Decrease (increase) in intercompany receivables, net | 19,194 | (21,532) |
Other financing activities, net | 54 | |
Net cash (used in) provided by financing activities | (35,080) | (26,028) |
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: | (1,398) | (21,075) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from senior term loans | 300,000 | 550,000 |
Repayment of senior term loans | (300,000) | |
Proceeds from revolving credit facility | 507,000 | 898,000 |
Repayment of revolving credit facility | (171,000) | (435,000) |
Repayment of 5.00% senior notes (including premium) | (820,000) | |
Payment of financing costs | (3,353) | (39) |
Decrease (increase) in intercompany receivables, net | (350,122) | (179,368) |
Net cash (used in) provided by financing activities | (17,475) | 13,593 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (18,873) | (7,482) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 34,063 | 15,604 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 15,190 | 8,122 |
Cash paid during the period for: | ||
Interest | 28,993 | 48,490 |
Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (341,646) | (200,152) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (21,511) | (30,870) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (1,798) | |
Contributions to unconsolidated subsidiaries | (18,722) | (7,932) |
Distributions from unconsolidated subsidiaries | 5,797 | 14,869 |
Purchase of equity securities | (2,867) | (10,219) |
Proceeds from sale of equity securities | 2,798 | 4,367 |
Purchase of available for sale debt securities | (12,066) | |
Proceeds from the sale of available for sale debt securities | 603 | 2,264 |
Other investing activities, net | 689 | (6,590) |
Net cash used in investing activities | (35,011) | (46,177) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Acquisition of businesses (cash (paid) received for acquisitions more than three months after purchase date) | (16,319) | (11,463) |
Decrease (increase) in intercompany receivables, net | 194,992 | 217,675 |
Other financing activities, net | (10) | |
Net cash (used in) provided by financing activities | 178,663 | 206,212 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (197,994) | (40,117) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 274,948 | 114,143 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 76,954 | 74,026 |
Cash paid during the period for: | ||
Income taxes, net | 3,197 | 118 |
Nonguarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (93,925) | (54,759) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (26,154) | (15,854) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (344) | |
Contributions to unconsolidated subsidiaries | (4,840) | (2,679) |
Distributions from unconsolidated subsidiaries | 177 | 347 |
Proceeds from sale of equity securities | 1,558 | |
Other investing activities, net | (10) | 151 |
Net cash used in investing activities | (29,613) | (18,035) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Acquisition of businesses (cash (paid) received for acquisitions more than three months after purchase date) | (866) | 3,414 |
Non-controlling interest contributions | 40,774 | 1,595 |
Non-controlling interest distributions | (1,347) | (1,025) |
Payment of financing costs | (21) | |
Decrease (increase) in intercompany receivables, net | 135,936 | (16,775) |
Other financing activities, net | (556) | 359 |
Net cash (used in) provided by financing activities | 173,920 | (12,432) |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (9,791) | 29,819 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 40,591 | (55,407) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 554,926 | 695,065 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 595,517 | 639,658 |
Cash paid during the period for: | ||
Interest | 4,613 | 504 |
Income taxes, net | $ 51,044 | $ 37,101 |