Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-32205 | ||
Entity Registrant Name | CBRE GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-3391143 | ||
Entity Address, Address Line One | 2100 McKinney Avenue | ||
Entity Address, Address Line Two | Suite 1250 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75201 | ||
City Area Code | 214 | ||
Local Phone Number | 979-6100 | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value per share | ||
Trading Symbol | “CBRE” | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 24.2 | ||
Entity Common Stock, Shares Outstanding | 305,695,875 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the registrant’s 2024 Annual Meeting of Stockholders to be held May 22, 2024 are incorporated by reference in Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001138118 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Los Angeles, California |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 1,265 | $ 1,318 |
Restricted cash | 106 | 86.6 |
Receivables, less allowance for doubtful accounts of $102.0 and $92.4 at December 31, 2023 and 2022, respectively | 6,370 | 5,327 |
Warehouse receivables | 675 | 455 |
Contract assets | 442.9 | 391.6 |
Prepaid expenses | 333 | 311 |
Income taxes receivable | 159 | 82 |
Other current assets | 315 | 557 |
Total Current Assets | 9,666 | 8,529 |
Property and equipment, net of accumulated depreciation and amortization of $1,576.1 and $1,386.3 at December 31, 2023 and 2022, respectively | 907 | 836 |
Goodwill | 5,129 | 4,868 |
Other intangible assets, net of accumulated amortization of $2,178.9 and $1,915.7 at December 31, 2023 and 2022, respectively | 2,081 | 2,193 |
Operating lease assets | 1,030 | 1,033 |
Investments in unconsolidated subsidiaries (with $997.3 and $973.6 at fair value at December 31, 2023 and 2022, respectively) | 1,374 | 1,318 |
Non-current contract assets | 75 | 137 |
Real estate under development | 300 | 172 |
Non-current income taxes receivable | 78 | 52 |
Deferred tax assets, net | 361 | 266 |
Other assets, net | 1,547 | 1,109 |
Total Assets | 22,548 | 20,513 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 3,562 | 3,079 |
Compensation and employee benefits payable | 1,459 | 1,459 |
Accrued bonus and profit sharing | 1,556 | 1,691 |
Operating lease liabilities | 242 | 230 |
Contract liabilities | 297.6 | 276.3 |
Income taxes payable | 217 | 184 |
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 666 | 448 |
Revolving credit facility | 0 | 178 |
Other short-term borrowings | 16 | 43 |
Current maturities of long-term debt | 9 | 428 |
Other current liabilities | 218 | 226 |
Total Current Liabilities | 8,243 | 8,242 |
Long-term debt, net of current maturities | 2,804 | 1,086 |
Non-current operating lease liabilities | 1,089 | 1,080 |
Non-current income taxes payable | 30 | 55 |
Non-current tax liabilities | 157 | 149 |
Deferred tax liabilities, net | 255 | 282 |
Other liabilities | 903 | 1,013 |
Total Liabilities | 13,481 | 11,907 |
Commitments and contingencies | 0 | 0 |
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock; $0.01 par value; 525,000,000 shares authorized; 304,889,140 and 311,014,160 shares issued and outstanding at December 31, 2023 and 2022, respectively | 3 | 3 |
Additional paid-in capital | 0 | 0 |
Accumulated earnings | 9,188 | 8,833 |
Accumulated other comprehensive loss | (924) | (983) |
Total CBRE Group, Inc. Stockholders’ Equity | 8,267 | 7,853 |
Non-controlling interests | 800 | 753 |
Total Equity | 9,067 | 8,606 |
Total Liabilities and Equity | $ 22,548 | $ 20,513 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 102 | $ 92.4 |
Property and equipment, accumulated depreciation and amortization | 1,576.1 | 1,386.3 |
Other intangible assets, accumulated amortization | 2,178.9 | 1,915.7 |
Investments in unconsolidated entities, fair value | $ 997.3 | $ 973.6 |
Class A common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Class A common stock, shares authorized (in shares) | 525,000,000 | 525,000,000 |
Class A common stock issued (in shares) | 304,889,140 | 311,014,160 |
Class A common stock outstanding (in shares) | 304,889,140 | 311,014,160 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 31,949 | $ 30,828 | $ 27,746 |
Costs and expenses: | |||
Cost of revenue | 25,675 | 24,239 | 21,580 |
Operating, administrative and other | 4,562 | 4,649 | 4,074 |
Depreciation and amortization | 622 | 613 | 526 |
Asset impairments | 0 | 58.7 | 0 |
Total costs and expenses | 30,859 | 29,560 | 26,180 |
Gain on disposition of real estate | 27 | 244 | 71 |
Operating income | 1,117 | 1,512 | 1,637 |
Equity income from unconsolidated subsidiaries | 248 | 229 | 619 |
Other income (loss) | 61 | (12) | 204 |
Interest expense, net of interest income | 149 | 69 | 50 |
Write-off of financing costs on extinguished debt | 0 | 2 | 0 |
Income before provision for income taxes | 1,277 | 1,658 | 2,410 |
Provision for income taxes | 250 | 234 | 568 |
Net income | 1,027 | 1,424 | 1,842 |
Less: Net income attributable to non-controlling interests | 41 | 17 | 5 |
Net income attributable to CBRE Group, Inc. | $ 986 | $ 1,407 | $ 1,837 |
Basic income per share: | |||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 3.20 | $ 4.36 | $ 5.48 |
Weighted average shares outstanding for basic income per share (in shares) | 308,430,080 | 322,813,345 | 335,232,840 |
Diluted income per share: | |||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 3.15 | $ 4.29 | $ 5.41 |
Weighted average shares outstanding for diluted income per share (in shares) | 312,550,942 | 327,696,115 | 339,717,401 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,027 | $ 1,424 | $ 1,842 |
Other comprehensive income (loss): | |||
Foreign currency translation gain (loss) | 111 | (409) | (159) |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of $0.1, $0.1 and $0.2 income tax expense for the years ended December 31, 2023, 2022 and 2021, respectively | 0 | 0 | 0 |
Unrealized holding losses on available for sale debt securities, net of $0.1 income tax expense and $1.8 and $0.4 income tax benefit for the years ended December 31, 2023, 2022 and 2021, respectively | 0 | (6) | (2) |
Pension liability adjustments, net of $0.7, $5.2 and $8.3 income tax expense for the years ended December 31, 2023, 2022 and 2021, respectively | 2 | (15) | 35 |
Other, net of $3.8 income tax benefit and $1.0 and $0.7 income tax expense for the years ended December 31, 2023, 2022 and 2021, respectively | (18) | (6) | 3 |
Total other comprehensive income (loss) | 95 | (436) | (123) |
Comprehensive income | 1,122 | 988 | 1,719 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 77 | (78) | (7) |
Comprehensive income attributable to CBRE Group, Inc. | $ 1,045 | $ 1,066 | $ 1,726 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, income tax expense | $ (0.1) | $ (0.1) | $ (0.2) |
Unrealized holding (losses) gains on available for sale debt securities, income tax expense (benefit) | (0.1) | 1.8 | 0.4 |
Pension liability adjustments, income tax expense (benefit) | (0.7) | (5.2) | (8.3) |
Income tax expense | $ 3.8 | $ (1) | $ (0.7) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 1,027 | $ 1,424 | $ 1,842 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 622 | 613 | 526 |
Amortization and write-off of financing costs on extinguished debt | 6 | 8 | 8 |
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets | (102) | (203) | (143) |
Gain associated with remeasuring our investment in a previously unconsolidated subsidiary to fair value as of the date we acquired the remaining interest | (34) | 0 | 0 |
Gain on disposition of real estate assets | (27) | 0 | 0 |
Asset impairments | 0 | 58.7 | 0 |
Net realized and unrealized (gains) losses, primarily from investments | (6) | 30 | (42) |
Provision for doubtful accounts | 16 | 17 | 24 |
Net compensation expense for equity awards | 96 | 160 | 185 |
Equity income from unconsolidated subsidiaries | (248) | (229) | (619) |
Gain recognized upon deconsolidation of SPAC | 0 | 0 | (187) |
Distribution of earnings from unconsolidated subsidiaries | 256 | 389 | 520 |
Proceeds from sale of mortgage loans | 9,714 | 14,527 | 17,195 |
Origination of mortgage loans | (9,905) | (13,652) | (17,016) |
Increase (decrease) in warehouse lines of credit | 218 | (830) | (107) |
Tenant concessions received | 12 | 12 | 31 |
Purchase of equity securities | (15) | (28) | (7) |
Proceeds from sale of equity securities | 14 | 30 | 9 |
Decrease (increase) in real estate under development | 81 | 95 | (55) |
Increase in receivables, prepaid expenses and other assets (including contract and lease assets) | (860) | (503) | (766) |
Increase in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) | 22 | 64 | 105 |
(Decrease) increase in compensation and employee benefits payable and accrued bonus and profit sharing | (173) | (2) | 730 |
(Increase) decrease in net income taxes receivable/payable | (97) | (133) | 248 |
Other operating activities, net | (137) | (219) | (117) |
Net cash provided by operating activities | 480 | 1,629 | 2,364 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (305) | (260) | (210) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (203) | (173) | (781) |
Contributions to unconsolidated subsidiaries | (127) | (385) | (335) |
Distributions from unconsolidated subsidiaries | 54 | 87 | 76 |
Acquisition and development of real estate assets | (171) | 0 | 0 |
Proceeds from disposition of real estate assets | 77 | 0 | 0 |
Investment in VTS | 0 | (101) | 0 |
Investment in Altus Power, Inc. Class A stock | 0 | 0 | (220) |
Proceeds from sale of marketable securities - special purpose acquisition company trust account | 0 | 0 | 213 |
Other investing activities, net | (6) | 0 | (24) |
Net cash used in investing activities | (681) | (832) | (1,281) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from revolving credit facility | 4,006 | 1,833 | 27 |
Repayment of revolving credit facility | (4,184) | (1,655) | 0 |
Proceeds from senior term loans | 748 | 0 | 0 |
Repayment of senior term loans | (437) | 0 | (300) |
Proceeds from notes payable on real estate | 76 | 39 | 78 |
Repayment of notes payable on real estate | (43) | (28) | (109) |
Repurchase of common stock | (665) | (1,850) | (369) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (145) | (34) | (17) |
Units repurchased for payment of taxes on equity awards | (72) | (38) | (39) |
Non-controlling interest contributions | 6 | 2 | 1 |
Non-controlling interest distributions | (42) | (1) | (5) |
Redemption of non-controlling interest-special purpose acquisition company and payment of deferred underwriting commission | 0 | 0 | (205) |
Other financing activities, net | (69) | (34) | (44) |
Net cash provided by (used in) financing activities | 154 | (1,766) | (490) |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | 13 | (166) | (92) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (34) | (1,135) | 501 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF YEAR | 1,405 | 2,540 | 2,039 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF YEAR | 1,371 | 1,405 | 2,540 |
Cash paid during the year for: | |||
Interest | 191 | 89 | 41 |
Income tax payments, net | 467 | 604 | 330 |
Non-cash investing and financing activities: | |||
Deferred and/or contingent consideration | 54 | 0 | 485 |
Non-controlling interest as part of Turner & Townsend Acquisition | 0 | 0 | 774 |
Investment in alignment shares and private placement warrants of Altus Power, Inc. | 0 | 0 | 142 |
Reduction in redeemable non-controlling interest - special purpose acquisition company | 0 | 0 | 212 |
Reduction of trust account - special purpose acquisition company | 0 | 0 | 190 |
5.950% Senior Notes | Senior Notes | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance | 975 | 0 | 0 |
2.500% Senior Notes | Senior Notes | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance | $ 0 | $ 0 | $ 492 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Dec. 31, 2023 |
5.950% Senior Notes | Senior Notes | |
Interest rate | 5.95% |
2.500% Senior Notes | Senior Notes | |
Interest rate | 2.50% |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Class A common stock | Additional paid-in capital | Accumulated earnings | Minimum pension liability | Foreign currency translation and other | Non- controlling interests |
Beginning balance (in shares) at Dec. 31, 2020 | 335,561,345 | ||||||
Beginning Balance at Dec. 31, 2020 | $ 7,120 | $ 3 | $ 1,075 | $ 6,530 | $ (139) | $ (391) | $ 42 |
Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,842 | 1,837 | 5 | ||||
Pension liability adjustments, net of tax | 35 | 35 | |||||
Restricted stock awards vesting (in shares) | 1,268,983 | ||||||
Restricted stock awards vesting | 0 | ||||||
Compensation expense for equity awards | 185 | 185 | |||||
Units repurchased for payment of taxes on equity awards | (39) | (39) | |||||
Repurchase of common stock (in shares) | (3,954,369) | ||||||
Repurchase of common stock | (373) | (373) | |||||
Foreign currency translation gain (loss) | (159) | (147) | (12) | ||||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 0 | ||||||
Unrealized holding losses on available for sale debt securities, net of tax | (2) | (2) | |||||
Contributions from non-controlling interests | 1 | 1 | |||||
Distributions to non-controlling interests | (5) | (5) | |||||
Acquisition of non-controlling interests | 809 | 809 | |||||
Other | (55) | (49) | 3 | (9) | |||
Ending balance (in shares) at Dec. 31, 2021 | 332,875,959 | ||||||
Ending balance at Dec. 31, 2021 | 9,359 | $ 3 | 799 | 8,367 | (104) | (537) | 831 |
Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,424 | 1,407 | 17 | ||||
Pension liability adjustments, net of tax | (15) | (15) | |||||
Restricted stock awards vesting (in shares) | 1,028,807 | ||||||
Restricted stock awards vesting | 0 | ||||||
Compensation expense for equity awards | 160 | 160 | |||||
Units repurchased for payment of taxes on equity awards | (38) | (38) | |||||
Repurchase of common stock (in shares) | (22,890,606) | ||||||
Repurchase of common stock | (1,862) | (913) | (949) | ||||
Foreign currency translation gain (loss) | (409) | (315) | (94) | ||||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 0 | ||||||
Unrealized holding losses on available for sale debt securities, net of tax | (6) | (6) | |||||
Contributions from non-controlling interests | 2 | 2 | |||||
Distributions to non-controlling interests | (1) | (1) | |||||
Other | (8) | (8) | 8 | (6) | (2) | ||
Ending balance (in shares) at Dec. 31, 2022 | 311,014,160 | ||||||
Ending balance at Dec. 31, 2022 | 8,606 | $ 3 | 0 | 8,833 | (119) | (864) | 753 |
Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,027 | 986 | 41 | ||||
Pension liability adjustments, net of tax | 2 | 2 | |||||
Restricted stock awards vesting (in shares) | 1,742,328 | ||||||
Restricted stock awards vesting | 0 | ||||||
Compensation expense for equity awards | 96 | 96 | |||||
Units repurchased for payment of taxes on equity awards | (72) | (36) | (36) | ||||
Repurchase of common stock (in shares) | (7,867,348) | ||||||
Repurchase of common stock | (649) | (47) | (602) | ||||
Foreign currency translation gain (loss) | 111 | 75 | 36 | ||||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 0 | ||||||
Unrealized holding losses on available for sale debt securities, net of tax | 0 | ||||||
Contributions from non-controlling interests | 6 | 6 | |||||
Distributions to non-controlling interests | (42) | (42) | |||||
Other | (18) | (13) | 7 | (18) | 6 | ||
Ending balance (in shares) at Dec. 31, 2023 | 304,889,140 | ||||||
Ending balance at Dec. 31, 2023 | $ 9,067 | $ 3 | $ 0 | $ 9,188 | $ (117) | $ (807) | $ 800 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations CBRE Group, Inc., a Delaware corporation (which may be referred to in these financial statements as “the company,” “we,” “us” and “our”), was incorporated on February 20, 2001. We are the world’s largest commercial real estate services and investment firm, based on 2023 revenue, with leading global market positions in most lines of business we serve. Our business is focused on providing services to real estate investors and occupiers. For investors, we provide capital markets (property sales and mortgage origination), mortgage servicing, property leasing, investment management, property management, valuation and development services, among others. For occupiers, we provide facilities management, project management, transaction (both property sales and leasing) and consulting services, among others. We generate revenue from both management fees (large multi-year portfolio and per-project contracts) and commissions on transactions. As of December 31, 2023, the company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries providing services under the following brand names: “CBRE” (real estate advisory and outsourcing services); “CBRE Investment Management” (investment management); “Trammell Crow Company” (primarily U.S. development); “Telford Homes” (U.K. development) and “Turner & Townsend Holdings Limited” (Turner & Townsend). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries, which are comprised of variable interest entities in which we are the primary beneficiary and voting interest entities, in which we determined we have a controlling financial interest, under the “ Consolidations ” topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) (Topic 810). The equity attributable to non-controlling interests in subsidiaries is shown separately in the accompanying consolidated balance sheets. All significant intercompany accounts and transactions have been eliminated in consolidation. Variable Interest Entities (VIEs) We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. Our determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in the VIE. Determining which reporting entity, if any, has a controlling financial interest in a VIE is primarily a qualitative approach focused on identifying which reporting entity has both: (i) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to sell or liquidate the entity. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion continually. We consolidate any VIE of which we are the primary beneficiary and disclose significant VIEs of which we are not the primary beneficiary, if any, as well as disclose our maximum exposure to loss related to VIEs that are not consolidated (see Note 6). Voting Interest Entities (VOEs) For VOEs, we consolidate the entity if we have a controlling financial interest. We have a controlling financial interest in a VOE if: (i) for legal entities other than limited partnerships, we own a majority voting interest in the VOE or, for limited partnerships and similar entities, we own a majority of the entity’s kick-out rights through voting limited partnership interests; and (ii) non-controlling shareholders or partners do not hold substantive participating rights and no other conditions exist that would indicate that we do not control the entity. Debt and Equity Securities and Other Investments Debt securities are classified as held to maturity when we have the positive intent and ability to hold the securities to maturity. Debt securities not classified as held to maturity are classified as available for sale. Available for sale debt securities are carried at their fair value and any difference between cost and fair value is recorded as an unrealized gain or loss, net of income taxes, and is reported as accumulated other comprehensive income (loss) in the consolidated statements of equity. Premiums and discounts are recognized in interest using the effective interest method. Realized gains and losses and declines in value resulting from credit losses on available for sale debt securities have not been significant. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available for sale are included in interest income. Our investments in unconsolidated subsidiaries in which we have the ability to exercise significant influence over operating and financial policies, but do not control, or entities which are VIEs in which we are not the primary beneficiary are accounted for under the equity method in accordance with the “ Instruments - Equity Method and Joint Ventures” topic of the FASB ASC (Topic 323). We eliminate transactions with such equity method subsidiaries to the extent of our ownership in such subsidiaries. Accordingly, our share of the earnings from these equity-method basis companies, generally recognized on a lag of three months or less, is included in consolidated net income. We have elected to account for certain eligible investments and related interests at fair value in accordance with the “Financial Instruments” topic of the FASB ASC (Topic 825). For a portion of our investments in unconsolidated subsidiaries reported at fair value, we estimate fair value using the net asset value (NAV) per share (or its equivalent) our investees provide. These investments are considered investment companies, or are the equivalent of investment companies, as they carry all investments at fair value, with unrealized gains and losses resulting from changes in fair value reflected in earnings. Accordingly, we effectively carry our investments at an amount that is equivalent to our proportionate share of the net assets of each investment that would be allocated to us if each investment was liquidated at the net asset value as of the measurement date. Equity investments that do not result in consolidation and are not accounted for under the equity method (primarily marketable equity securities) are measured at fair value with changes therein reflected in net income. Equity instruments that do not have readily determinable fair values and do not qualify for using the net asset value per share practical expedient in the “Fair Value Measurements” topic of the FASB ASC (Topic 820) are measured at cost, less any impairment, and adjusted for subsequent observable transactions for the same or similar investments of the same issuer. Impairment Evaluation Impairment losses on investments, other than available for sale debt securities and investments otherwise measured at fair value, are recognized upon evidence of other-than-temporary losses of value. When testing for impairment on investments that are not actively traded on a public market, we generally use a discounted cash flow approach to estimate the fair value of our investments and/or look to comparable activities in the marketplace. Management’s judgment is required in developing the assumptions for the discounted cash flow approach. These assumptions include net asset values, internal rates of return, discount and capitalization rates, interest rates and financing terms, rental rates, timing of leasing activity, estimates of lease terms and related concessions, etc. When determining if impairment is other-than-temporary, we also look to the length of time and the extent to which fair value has been less than cost as well as the financial condition and near-term prospects of each investment. Based on our review, we did not record any significant other-than-temporary impairment losses during the years ended December 31, 2023, 2022 and 2021. Use of Estimates Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP), which require management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts reported in our consolidated financial statements and accompanying notes. 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, other post-employment benefits, and loss contingencies, 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. Actual results may differ from these estimates and assumptions. Cash and Cash Equivalents Cash and cash equivalents generally consist of cash and highly liquid investments with an original maturity of three months or less. We also manage certain cash and cash equivalents as an agent for our investment and property and facilities management clients. These amounts are not included in the accompanying consolidated balance sheets (see Fiduciary Funds discussion below). Restricted Cash Included in the accompanying consolidated balance sheets as of December 31, 2023 and 2022 is restricted cash of $106.0 million and $86.6 million, respectively. The balances primarily include restricted cash set aside to cover funding obligations as required by contracts executed by us in the ordinary course of business. Fiduciary Funds The accompanying consolidated balance sheets do not include the net assets of escrow, agency and fiduciary funds, which are held by us on behalf of clients. Concentration of Credit Risk Financial instruments that potentially subject us to credit risk consist principally of trade receivables and interest-bearing investments. Users of real estate services account for a substantial portion of trade receivables and collateral is generally not required. The risk associated with this concentration is limited due to the large number of users and their geographic dispersion. We place substantially all our interest-bearing investments with several major financial institutions to limit the amount of credit exposure with any one financial institution. Property and Equipment Property and equipment, which includes leasehold improvements, is stated at cost, net of accumulated depreciation and impairment. Depreciation and amortization of property and equipment is computed primarily using the straight-line method over estimated useful lives ranging up to 10 years. Leasehold improvements are amortized over the term of their associated leases, excluding options to renew unless we are reasonably certain that we will exercise the option to renew. We capitalize expenditures that significantly increase the life of our assets and expense the costs of maintenance and repairs. We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If this review indicates that such assets are considered impaired, the impairment is recognized in the period the changes occur and represents the amount by which the carrying value exceeds the fair value of the asset or asset group. Certain costs related to the development or purchase of internal-use software are capitalized. Internal-use software costs incurred in the preliminary project stage are expensed as incurred. Significant direct consulting costs and certain payroll and related costs, which are incurred during the development stage of a project are generally capitalized and amortized over a three-year period (except for enterprise software development platforms, which range from three Real Estate Classification and Impairment Evaluation We classify real estate in accordance with the criteria of the “ Property, Plant and Equipment ” topic of the FASB ASC (Topic 360) as follows: (i) real estate held for sale, which includes completed assets or land for sale in its present condition that meet all of Topic 360’s “held for sale” criteria; (ii) real estate under development (current), which includes real estate that we are in the process of developing that is expected to be completed and disposed of within one year of the balance sheet date; (iii) real estate under development (non-current), which includes real estate that we are in the process of developing that is expected to be completed and disposed of more than one year from the balance sheet date; or (iv) real estate held for investment, which consists of land on which development activities have not yet commenced and completed assets or land held for disposition that do not meet the “held for sale” criteria. Any asset reclassified from real estate held for sale to real estate held for investment is recorded individually at the lower of its fair value at the date of the reclassification or its carrying amount before it was classified as “held for sale,” adjusted (in the case of real estate held for investment) for any depreciation that would have been recognized had the asset been continuously classified as real estate held for investment. Real estate held for sale is recorded at the lower of cost or fair value less cost to sell. If an asset’s fair value less cost to sell, based on discounted future cash flows, management estimates or market comparisons, is less than its carrying amount, an allowance is recorded against the asset. Real estate under development and real estate held for investment are carried at cost less depreciation and impairment, as applicable. Buildings and improvements included in real estate held for investment are depreciated using the straight-line method over estimated useful lives, generally up to 39 years. Tenant improvements included in real estate held for investment are amortized using the straight-line method over the shorter of their estimated useful lives or terms of the respective leases. Land improvements included in real estate held for investment are depreciated over their estimated useful lives, up to 15 years. Real estate under development and real estate held for investment are evaluated for impairment and losses are recorded when undiscounted cash flows estimated to be generated by an asset are less than the asset’s carrying amount. The amount of the impairment loss, if any, is calculated as the excess of the asset’s carrying value over its fair value, which is determined using a discounted cash flow analysis, management estimates or market comparisons. A summary of our real estate assets is as follows (dollars in millions): December 31, 2023 2022 Real estate under development, current (included in other current assets) $ — $ 193 Real estate and other assets held for sale (included in other current assets) 42 97 Real estate under development 300 172 Real estate held for investment (included in other assets, net) 179 45 Total real estate $ 521 $ 507 Cost Capitalization and Allocation When acquiring, developing, and constructing real estate assets, we capitalize recoverable costs. Capitalization begins when the activities related to development have begun and ceases when activities are substantially complete and the asset is available for occupancy. Recoverable costs capitalized include pursuit costs, or pre-acquisition/pre-construction costs, taxes and insurance, interest, development and construction costs and costs of incidental operations. We do not capitalize any internal costs when acquiring, developing, and constructing real estate assets. We expense transaction costs for acquisitions that qualify as a business in accordance with the “ Business Combinations ” topic of the FASB ASC (Topic 805). Pursuit costs capitalized in connection with a potential development project that we have determined not to pursue are written off in the period that determination is made. At times, we purchase bulk land that we intend to sell or develop in phases. The land basis allocated to each phase is based on the relative estimated fair value of the phases before construction except for newly acquired held for sale phases which are measured at their fair value less cost to sell at the acquisition date. We allocate construction costs incurred relating to more than one phase between the various phases; if the costs cannot be specifically attributed to a certain phase or the improvements benefit more than one phase, we allocate the costs between the phases based on their relative estimated sales values, where practicable, or other value methods as appropriate under the circumstances. Relative allocations of the costs are revised as the sales value estimates are revised. When acquiring real estate with existing buildings, we allocate the purchase price between land, land improvements, building and intangibles related to in-place leases, if any, based on their relative fair values. The fair values of acquired land and buildings are determined based on an estimated discounted future cash flow model with lease-up assumptions as if the building was vacant upon acquisition. The fair value of in-place leases includes the value of lease intangibles for above or below-market rents and tenant origination costs, determined on a lease-by-lease basis. The capitalized values for both lease intangibles and tenant origination costs are amortized over the term of the underlying leases. Amortization related to lease intangibles is recorded as either an increase to or a reduction of rental income and amortization for tenant origination costs is recorded to amortization expense. Disposition of Real Estate We account for gains and losses on the sale of real estate and other nonfinancial assets or in substance n onfinancial assets to noncustomers that are not an output of our ordinary activities and are not a business in accordance with the “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets” topic of the FASB ASC (Topic 610-20). Where we do not have a controlling financial interest in the entity that holds the transferred assets after the transaction, we derecognize the assets or in substance nonfinancial assets and recognize a gain or loss when control of the underlying assets transfers to the counterparty. We may also dispose of real estate through the transfer of a long-term leasehold representing a major part of the remaining economic life of the property. We account for these transfers as sales-type leases in accordance with the “ Lease s” topic of the FASB ASC (Topic 842) by derecognizing the carrying amount of the underlying asset, recognizing any net investment in the lease and recognizing selling profit or loss in net income. Goodwill and Other Intangible Assets Our acquisitions of businesses require the application of purchase accounting, which results in tangible and identifiable intangible assets and liabilities of the acquired entity being recorded at fair value. The difference between the purchase price and the fair value of net assets acquired is recorded as goodwill. Deferred consideration arrangements granted in connection with a business combination are evaluated to determine whether all or a portion is, in substance, additional purchase price or compensation for services. Additional purchase price is added to the fair value of consideration transferred in the business combination and compensation is included in operating expenses in the period it is incurred. We are required to test goodwill and other intangible assets deemed to have indefinite useful lives for impairment at least annually, or more often if circumstances or events indicate a change in the impairment status, in accordance with FASB ASC (Topic 350), “ Intangibles – Goodwill and Other. ” The guidance permits, but does not require an entity to perform a qualitative assessment with respect to any of its reporting units or indefinite-lived intangible assets to determine whether a quantitative impairment test is needed. Entities are permitted to assess based on qualitative factors whether it is more likely than not that a reporting unit’s or indefinite-lived intangible asset’s fair value is less than its carrying amount before applying the quantitative impairment test. If it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying amount, the entity conducts the quantitative impairment test. If not, the entity does not need to apply the quantitative test. The qualitative test is elective, and an entity can go directly to the quantitative test rather than making a more-likely-than-not assessment based on an evaluation of qualitative factors. When performing a quantitative test, we primarily use a discounted cash flow approach to estimate the fair value of our reporting units and indefinite-lived intangible assets. Management’s judgment is required in developing the assumptions for the discounted cash flow model. These assumptions include revenue growth rates, profit margin percentages, discount rates, etc. We record an impairment loss when the amount by which a reporting unit’s or indefinite-lived intangible asset’s carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill or indefinite-lived intangible asset. Business Combinations We estimate the fair value of identifiable assets, liabilities and any non-controlling interests acquired in a business combination and recognize goodwill as the excess of the purchase price over the recorded value of the acquired assets and liabilities in accordance with FASB ASC (Topic 805). When estimating the fair value of acquired assets, we utilize various valuation models which may require significant judgment, particularly where observable market values do not exist. Inputs requiring significant judgment may include discount rates, growth rates, cost of capital, royalty rates, tax rates, market values, depreciated replacement costs, selling prices less costs to dispose, and remaining useful lives, among others. Reasonable differences in these inputs could have a significant impact on the estimated value of acquired assets, the resulting value of goodwill, subsequent depreciation and amortization expense, and the results of future asset impairment evaluations. Leases We are the lessee in contracts for our office space tenancies, for leased vehicles, and for some leases of land in our global development business. We monitor our service arrangements to evaluate whether they meet the definition of a lease. The present value of lease payments, which are either fixed payments, in-substance fixed payments, or variable payments tied to an index or rate are recognized on the consolidated balance sheet with corresponding lease liabilities and right-of-use assets upon the commencement of the lease. These lease costs are expensed over the respective lease term in accordance with the classification of the lease (i.e., operating versus finance classification). Variable lease payments not tied to an index or rate are expensed as incurred and are not subject to capitalization. The base terms for our lease arrangements typically do not extend beyond 10 years, except for land leases. We commonly have renewal options in our leases, but most of these options do not create a significant economic incentive for us to extend the lease term. Therefore, payments during periods covered by these renewal options are typically not included in our lease liabilities and right-of-use assets. Specific to our vehicle leases, early termination options are common and economic penalties associated with early termination of these contracts are typically significant enough to make it reasonably certain that we will not exercise such options. Therefore, payments during periods covered by these early termination options in vehicle leases are typically included in our lease liabilities and right-of-use assets. As an accounting policy election, our short-term leases with an initial term of 12 months or less are not recognized as lease liabilities and right-of-use assets in the consolidated balance sheets. The rent expense associated with short term leases is recognized on a straight-line basis over the lease term and was not significant. Most of our office space leases include variable payments based on our share of actual common area maintenance and operating costs of the leased property. Many of our vehicle leases include variable payments based on actual service and fuel costs. For both office space and vehicle leases, we have elected the practical expedient to not separate lease components from non-lease components. Therefore, these costs are classified as variable lease payments. Lease payments are typically discounted at our incremental borrowing rate because the interest rate implicit in the lease cannot be readily determined in the absence of key inputs which are typically not reported by our lessors. Because we do not generally borrow on a collateralized basis, judgement was used to estimate the secured borrowing rate associated with our leases based on relevant market data and our inputs applied to accepted valuation methodologies. The incremental borrowing rate calculated for each lease also reflects the lease term, currency, and geography specific to each lease. Deferred Financing Costs Costs incurred in connection with financing activities are generally deferred and amortized over the terms of the related debt agreements ranging up to eleven years. Debt issuance costs related to a recognized debt liability are presented in the accompanying consolidated balance sheets as a direct deduction from the carrying amount of that debt liability. Amortization of these costs is charged to interest expense in the accompanying consolidated statements of operations. Accounting Standards Update (ASU) 2015-15, “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” permits classifying debt issuance costs associated with a line of credit arrangement as an asset, regardless of whether there are any outstanding borrowings on the arrangement. Total deferred financing costs, net of accumulated amortization, related to our revolving line of credit have been included in other assets in the accompanying consolidated balance sheets and were $8.7 million and $11.1 million as of December 31, 2023 and 2022, respectively. See Note 11 for additional information on activities associated with our debt. Revenue Recognition We account for revenue with customers in accordance with the “ Revenue from Contracts with Customers ” topic of the FASB ASC (Topic 606). Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The following is a description of principal activities – separated by reportable segments – from which we generate revenue. For more detailed information about our reportable segments, see Notes 18 and 19. Advisory Services Our Advisory Services segment provides a comprehensive range of services globally, including property leasing, property sales, mortgage services, property management and valuation services. Property Leasing and Property Sales We provide strategic advice and execution for owners, investors, and occupiers of real estate in connection with the leasing of office, industrial and retail space. We also offer clients fully integrated property sales services under the CBRE Capital Markets brand. We are compensated for our services in the form of a commission and, in some instances, may earn various forms of variable incentive consideration. Our commission is paid upon the occurrence of certain contractual event(s) which may be contingent. For example, a portion of our leasing commission may be paid upon signing of the lease by the tenant, with the remaining paid upon occurrence of another future contingent event (e.g., payment of first month’s rent or tenant move-in). For leases, we typically satisfy our performance obligation at a point in time when control is transferred; generally, at the time of the first contractual event where there is a present right to payment. We look to history, experience with a customer, and deal specific considerations as part of the most likely outcome estimation approach to support our judgement that the second contingency (if applicable) will be met. Therefore, we typically accelerate the recognition of the revenue associated with the second contingent event. For sales, our commission is typically paid at the closing of the sale, which represents transfer of control for services to the customer. In addition to our commission, we may recognize other forms of variable consideration which can include, but are not limited to, commissions subject to concession or claw back and volume-based discounts or rebates. We assess variable consideration on a contract-by-contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. We recognize variable consideration if it is deemed probable that there will not be significant reversal in the future. Mortgage Originations and Loan Sales We offer clients commercial mortgage and structured financing services. Fees from services within our mortgage brokerage business that are in the scope of Topic 606 include fees earned for the brokering of commercial mortgage loans primarily through relationships established with investment banking firms, national and regional banks, credit companies, insurance companies and pension funds. We are compensated for our brokerage services via a fee paid upon successful placement of a commercial mortgage borrower with a lender who will provide financing. The fee earned is contingent upon the funding of the loan, which represents the transfer of control for services to the customer. Therefore, we typically satisfy our performance obligation at the point in time of the funding of the loan. Revenue from fees earned from Government-Sponsored Enterprises (GSEs) are out of the scope of Topic 606. We also earn fees from the origination and sale of commercial mortgage loans for which the company retains the servicing rights. These fees are governed by the “ Fair Value Measurements and Disclosures ” topic (Topic 820) and “ Transfers and Servicing ” topic (Topic 860) of the FASB ASC. Upon origination of a mortgage loan held for sale, the fair value of the mortgage servicing rights (MSR) to be retained is included in the forecasted proceeds from the anticipated loan sale and results in a net gain (which is reflected in revenue). Upon sale, we record a servicing asset or liability based on the fair value of the retained MSR associated with the transferred loan. Subsequent to the initial recording, MSRs are amortized and carried at the lower of amortized cost or fair value in other intangible assets in the accompanying consolidated balance sheets. They are amortized in proportion to and over the estimated period that the servicing income is expected to be received. Property Management Services We provide property management services on a contractual basis for owners of and investors in office, industrial and retail properties. These services include marketing, building engineering, accounting, and financial services. We are compensated for our services through a monthly management fee earned based on either a specified percentage of the monthly rental income, rental receipts generated from the property under management or a fixed fee. We are also often reimbursed for our administrative and payroll costs directly attributable to the properties under management. Property management services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees associated with the services performed. The amount of revenue recognized is presented gross for any services provided by our employees, as we control them. We generally do not control third-party services delivered to property manage |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We adopted ASU 2021-08 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-01, “ Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method.” This ASU allows nonprepayable financial assets to be included in a closed portfolio hedged using the portfolio layer method. The expanded scope permits an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We adopted ASU 2022-01 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures.” This ASU eliminates the accounting guidance for Troubled Debt Restructuring by creditors in 310-40 and enhances disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires entities to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We adopted ASU 2022-02 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In September 2022, the FASB issued ASU 2022-04, “Supplier Finance Programs (Sub Topic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its supplier finance programs in each annual reporting period including the key terms of the program and the following for obligations that the buyer has confirmed as valid to the provider: (1) the amount outstanding that remains unpaid by the buyer as of the end of the annual period, (2) a description of where those obligations are presented in the balance sheet, and (3) a rollforward of those obligations during the annual period, including the amount of obligations confirmed and the amount of obligations subsequently paid. Additionally, in each interim period, the buyer should disclose the amount of obligations outstanding that the buyer has confirmed as valid to the finance provider as of the end of the interim period. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We adopted ASU 2022-04 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. Recent Accounting Pronouncements Pending Adoption In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” Topic 820, Fair Value Measurement, states that a reporting entity should consider the characteristics of the asset or liability when measuring the fair value, including restrictions on the sale of the asset or liability, if a market participant would take those characteristics into account and the key to that determination is the unit of account for the asset or liability being measured at fair value. Topic 820 contains conflicting guidance on what the unit of account is when measuring the fair value of an equity security and this has resulted in diversity in practice on whether the effects of a contractual restriction that prohibits the sale of an equity security should be considered in measuring the equity security’s fair value. To address this, the amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU introduces new disclosure requirements to provide investors with information about the restriction including the nature and remaining duration of the restriction. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” This update requires that leasehold improvements associated with common control leases be amortized over the useful life of the leasehold improvements to the common control group (regardless of the lease term) and accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. This update also provides a practical expedient for private companies and not-for-profit entities to use written terms and conditions of a common control arrangement to determine if a lease exists and the classification and accounting for that lease. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization method.” This update permits an accounting election to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This update enhances reportable segment disclosures by requiring a public entity to: 1) disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, 2) disclose, on an annual and interim basis, an amount of other segment items by reportable segment and a description of its composition, 3) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods, 4) disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources, and 5) provide all the disclosures required by this update and all existing segment disclosures in Topic 280 if the entity has a single reportable segment. This ASU also clarifies that, in addition to the measure that is most consistent with the measurement principles under GAAP, a public entity is not precluded from reporting additional measures of a segment’s profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, “ Improvements to Income Tax Disclosures. ” This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid and will be effective for annual periods beginning after December 15, 2024. The new requirements should be applied on a prospective basis with an option to apply them retrospectively. Early adoption is permitted. We are evaluating the impact that ASU 2023-09 will have on our consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions 2023 Acquisitions During the year ended December 31, 2023, the company completed sixteen in-fill business acquisitions, including nine in the Advisory Services segment, six in the Global Workplace Solutions segment and one in the Real Estate Investments segment, with an aggregate purchase price of approximately $311.5 million in cash and non-cash consideration. Assets acquired and liabilities assumed are primarily working capital in nature. The results of operations of all acquisitions completed during the year ended 2023 have been included in the company’s consolidated financial results since their respective acquisition dates. These acquisitions were not significant in relation to the company’s consolidated financial results and, therefore, pro-forma financial information has not been presented. The following table identifies the company’s allocation of purchase price to goodwill and other intangible assets by category (dollars in millions): Amount Assigned at Acquisition Date Weighted-Average Life Goodwill $ 199 N/A Customer relationships 75 10 years Other intangible assets 7 4 years Total $ 281 2022 Acquisitions During the year ended December 31, 2022, the company did not have acquisitions that were deemed material either individually or in the aggregate. Turner and Townsend On November 1, 2021, we acquired a 60% ownership interest in Turner & Townsend Holdings Limited (Turner & Townsend) which is reported in our Global Workplace Solutions segment. The acquisition was treated as a business combination under ASC 805 and was accounted for using the acquisition method of accounting. The acquisition was funded with cash on hand. The following summarizes the consideration transferred at closing for the Turner & Townsend Acquisition (dollars in millions): Cash consideration (1) $ 723 Deferred consideration 494 Total consideration $ 1,217 ________________________________________________________________________________________________________________________________________ (1) Represents cash paid at closing The deferred consideration amount above, with the contractual payment dates of 3-4 years, presented at fair value, represents a total payment of $591.2 million less a discount of $96.9 million which will be accreted through the payment date as part of compensation expense and interest expense. The following represents the summary of the excess purchase price over the fair value of net assets acquired and fair value of non-controlling interest (dollars in millions): Purchase price $ 1,217 Less: Estimated fair value of net assets acquired 152 Plus: Estimated fair value of non-controlling interest (1) 32 Excess purchase price over estimated fair value of net assets acquired $ 1,097 ________________________________________________________________________________________________________________________________________ (1) Represents fair value of legacy non-controlling interest of Turner & Townsend The excess purchase price over the fair value of net assets acquired and non-controlling interest has been recorded to goodwill. The goodwill arising from the Turner & Townsend Acquisition consists largely of the synergies and opportunities to deliver a premier project, program and cost management services. The goodwill recorded in connection with the Turner & Townsend Acquisition was not deductible for tax purposes. The following table summarizes the preliminary fair values assigned to the identified assets acquired and liabilities assumed at the acquisition date on November 1, 2021. (Dollars in millions) Assets Acquired: Cash and cash equivalents $ 44 Receivables and other current assets 266 Other intangible assets, net 1,105 Other assets, net 110 Total assets acquired 1,525 Liabilities Assumed: Accounts payable and other liabilities 277 Non-current operating lease liabilities 31 Deferred tax liability 291 Total liabilities assumed 599 Non-controlling Interest Acquired 774 Estimated Fair Value of Net Assets Acquired $ 152 In connection with the Turner & Townsend Acquisition, below is a summary of the value allocated to the intangible assets acquired (dollars in millions): Asset Class Amortization Amount Assigned at Acquisition Date Customer relationships 5-11 years $ 754 Backlog 2-4 years 75 Trademark Indefinite 276 The accompanying consolidated statement of operations for the year ended December 31, 2021 includes revenue, operating income and net loss of $194.0 million, $0.5 million and $0.5 million, respectively, attributable to the Turner & Townsend Acquisition. This does not include direct transaction and integration costs of $44.6 million which were incurred during the year ended December 31, 2021 in connection with the Turner & Townsend Acquisition. The fair value of customer relationships and backlog was determined using the Multi-Period Excess Earnings Method (MPEEM), a form of the Income Approach. The MPEEM is a specific application of the Discounted Cash Flow Method. The principle behind the MPEEM is that the value of an intangible asset is equal to the present value of the incremental cash flows attributable only to the subject intangible asset. This estimation used certain unobservable key inputs such as timing of projected cash flows, growth rates, customer attrition rates, discount rates, and the assessment of useful life. The fair value of the trademark was determined by using the Relief-from-Royalty Method, a form of the Income Approach, and relied on key unobservable inputs such as timing of the projected cash flows, growth rates, and royalty rates. The basic tenet of the Relief-from-Royalty Method is that without ownership of the subject intangible asset, the user of that intangible asset would have to make a stream of payments to the owner of the asset in return for the rights to use that asset. By acquiring the intangible asset, the user avoids these payments. The fair value of the non-controlling interest was estimated by multiplying the implied value of a 100 percent equity interest in Turner & Townsend Holdings Limited by 40 percent. A discount for lack of marketability was not applied as the equity owners from Turner & Townsend Partners LLP maintain a significant equity stake and remain actively involved in the day to day operations of the business. Unaudited pro forma results, assuming the Turner & Townsend Acquisition had occurred as of January 1, 2020 for purposes of the pro forma disclosures for the years ended December 31, 2021 and 2020 are presented below. They include certain adjustments for increased amortization expense related to the intangible assets acquired (approximately $81.3 million and $97.5 million in 2021 and 2020, respectively) as well as increased depreciation expense related to the fixed assets acquired (approximately $5.5 million and $6.6 million in 2021 and 2020, respectively). Direct transaction and integration costs of $44.6 million as well as the tax impact of all pro forma adjustments are also included in the pro forma results. These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the Turner & Townsend Acquisition occurred on January 1, 2020 and may not be indicative of future operating results (dollars in millions, except share data): Year Ended December 31, 2021 2020 Revenue $ 28,546 $ 24,716 Operating income 1,706 944 Net income attributable to CBRE Group, Inc. 1,873 705 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 5.59 $ 2.10 Weighted average shares outstanding for basic income per share 335,232,840 335,196,296 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 5.51 $ 2.08 Weighted average shares outstanding for diluted income per share 339,717,401 338,392,210 |
Warehouse Receivables & Warehou
Warehouse Receivables & Warehouse Lines of Credit | 12 Months Ended |
Dec. 31, 2023 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Warehouse Receivables & Warehouse Lines of Credit | Warehouse Receivables & Warehouse Lines of Credit A rollforward of our warehouse receivables is as follows (dollars in millions): Beginning balance at December 31, 2022 $ 455 Origination of mortgage loans 9,905 Gains (premiums on loan sales) 27 Proceeds from sale of mortgage loans: Sale of mortgage loans (9,687) Cash collections of premiums on loan sales (27) Proceeds from sale of mortgage loans (9,714) Net increase in mortgage servicing rights included in warehouse receivables 2 Ending balance at December 31, 2023 $ 675 The following table is a summary of our warehouse lines of credit in place as of December 31, 2023 and 2022 (dollars in millions): December 31, 2023 December 31, 2022 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 12/13/2024 daily floating rate Secured Overnight Financing Rate (SOFR) rate plus 1.50%, with a SOFR adjustment rate of 0.05% $ 1,335 $ 613 $ 1,335 $ 331 JP Morgan (Business Lending Activity) 12/13/2024 daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05% 15 — 15 — Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program Cancelable daily floating SOFR plus 1.45%, with a SOFR floor of 0.25% 650 7 650 — TD Bank, N.A. (TD Bank) (2) 7/15/2024 daily floating rate SOFR plus 1.30%, with a SOFR adjustment rate of 0.10% 600 28 800 — Bank of America, N.A. (BofA) (3) 5/22/2024 daily floating SOFR rate plus 1.25%, with a SOFR adjustment rate of 0.10% 350 18 350 115 BofA (4) 5/22/2024 daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% 250 — 250 — MUFG Union Bank, N.A. (Union Bank) (5) — — 200 2 $ 3,200 $ 666 $ 3,600 $ 448 ________________________________________________________________________________________________________________________________________ (1) Effective December 15, 2023, this facility was amended and renewed at an interest rate of daily floating rate SOFR plus 1.50%, with a SOFR adjustment rate of 0.05% and a maturity date of December 13, 2024. (2) Effective July 15, 2023, this facility was renewed and amended to a maximum aggregate principal amount of $300.0 million, with an uncommitted $300.0 million temporary line of credit and a maturity date of July 15, 2024. As of December 31, 2023, the uncommitted $300.0 million temporary line of credit was not utilized. (3) Effective September 1, 2023, this facility was amended with a downward revised interest rate of daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% and a maturity date of May 22, 2024. (4) Effective September 1, 2023, this facility was amended with a downward revised interest rate of daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10%, and a maturity date of May 22, 2024. (5) This facility expired on June 27, 2023, and was not renewed. During the year ended December 31, 2023, we had a maximum of $1.2 billion of warehouse lines of credit principal outstanding. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entities | Variable Interest Entities We hold variable interests in certain VIEs primarily in our Real Estate Investments segment which are not consolidated as it was determined that we are not the primary beneficiary. Our involvement with these entities is in the form of equity co-investments and fee arrangements. As of December 31, 2023 and 2022, our maximum exposure to loss related to the VIEs that are not consolidated was as follows (dollars in millions): December 31, 2023 2022 Investments in unconsolidated subsidiaries $ 165 $ 153 Co-investment commitments 58 84 Maximum exposure to loss $ 223 $ 237 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Topic 820 of the FASB ASC defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022 (dollars in millions): December 31, 2023 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 12 $ — $ — $ 12 Debt securities issued by U.S. federal agencies — 11 — 11 Corporate debt securities — 44 — 44 Asset-backed securities — 1 — 1 Total available for sale debt securities 12 56 — 68 Equity securities 41 — — 41 Investments in unconsolidated subsidiaries 168 — 477 645 Warehouse receivables — 675 — 675 Other assets — — 16 16 Total assets at fair value $ 221 $ 731 $ 493 $ 1,445 Liabilities Derivative liabilities — 5 — 5 Total liabilities at fair value $ — $ 5 $ — $ 5 December 31, 2022 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 6 $ — $ — $ 6 Debt securities issued by U.S. federal agencies — 9 — 9 Corporate debt securities — 44 — 44 Asset-backed securities — 3 — 3 Total available for sale debt securities 6 56 — 62 Equity securities 34 — — 34 Investments in unconsolidated subsidiaries 160 — 461 621 Warehouse receivables — 455 — 455 Other assets — — 14 14 Total assets at fair value $ 200 $ 511 $ 475 $ 1,186 There were no liabilities measured at fair value on a recurring basis as of December 31, 2022. Fair value measurements for our available for sale debt securities are obtained from independent pricing services which utilize observable market data that may include quoted market prices, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. During the year ended December 31, 2023, we recorded a gain of $34.1 million associated with remeasuring our 50% investment in a previously unconsolidated subsidiary to fair value as of the date we acquired the remaining 50% controlling interest. Fair value of this investment in unconsolidated subsidiary at acquisition date was $37.4 million, based upon the purchase price paid for the remaining 50% interest acquired, which falls under Level 3 of the fair value hierarchy. Such gain was reflected in other income in our Advisory Services segment in the accompanying consolidated statements of operations for the year ended December 31, 2023. The equity securities are generally valued at the last reported sales price on the day of valuation or, if no sales occurred on the valuation date, at the mean of the bid and ask prices on such date. The above tables do not include our $142.8 million and $104.2 million as of December 31, 2023 and 2022, respectively, for capital investments in certain non-public entities as they are non-marketable equity investments accounted for under the measurement alternative, defined as cost minus impairment. These investments are included in “other assets, net” in the accompanying consolidated balance sheets. The fair values of the warehouse receivables are primarily calculated based on already locked in purchase prices. At December 31, 2023 and 2022, all of the warehouse receivables included in the accompanying consolidated balance sheets were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Ginnie Mae mortgage backed securities that will be secured by the underlying loans (See Notes 2 and 5). These assets are classified as Level 2 in the fair value hierarchy as a substantial majority of inputs are readily observable. As of December 31, 2023 and 2022, investments in unconsolidated subsidiaries at fair value using NAV were $352.3 million and $353.0 million, respectively. These investments fall under practical expedient rules that do not require them to be included in the fair value hierarchy and as a result have been excluded from the tables above. The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in millions): Investment in Unconsolidated Subsidiaries Other assets Balance as of December 31, 2021 $ 407 $ (11) Transfer in (out) (15) — Net change in fair value (38) 3 Purchases/ Additions 107 22 Balance as of December 31, 2022 461 14 Transfer in (out) — (10) Net change in fair value 16 5 Purchases/ Additions — 7 Balance as of December 31, 2023 $ 477 $ 16 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other assets (liabilities) Other income (loss) The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments as of December 31, 2023 : Valuation Technique Unobservable Input Range Weighted Average Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 25 % — Monte Carlo Volatility 45% - 69% 51 % Risk free interest rate 4 % — Discount Yield 25 % — Other assets Discounted cash flow Discount rate 25 % — There were no asset impairment charges or other significant non-recurring fair value measurements recorded during the years ended December 31, 2023 and December 31, 2021. During the year ended December 31, 2022, we recorded non-cash asset impairment charges of $58.7 million. Approximately $10.4 million of such charges related to the exit of our Advisory Services business in Russia (primarily comprised of receivables), and $26.4 million and $21.9 million related to goodwill and trade name impairment charges, respectively. The goodwill and the trade name impairment charges represent a full impairment of such assets associated with the Telford Homes business in our Real Estate Investments segment. The charges were attributable to the effects of elevated inflation on construction, materials and labor costs which increased Telford Homes’ risk as the contractor and reduced the profitability of current projects. The fair value measurements employed for our impairment evaluation of goodwill were based on a discounted cash flow approach and a relief from royalty fair value method for the trade name. Significant inputs used in the evaluation included a risk-free rate of return, estimated risk premium, terminal growth rates, working capital assumptions, royalty rate, income tax rates as well as other economic variables. These asset impairment charges were included within the line item “Asset impairments” in the accompanying consolidated statements of operations. FASB ASC Topic 825, “ Financial Instruments, ” requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments are as follows: • Cash and Cash Equivalents and Restricted Cash – These balances include cash and cash equivalents as well as restricted cash with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments. • Receivables, less Allowance for Doubtful Accounts – Due to their short-term nature, fair value approximates carrying value. • Warehouse Receivables – These balances are carried at fair value. The primary source of value is either a contractual purchase commitment from Freddie Mac or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS (see Notes 2 and 5). • Investments in Unconsolidated Subsidiaries – A portion of these investments are carried at fair value as discussed above. It includes our equity investment and related interests in both public and non-public entities. Our ownership of common shares in Altus Power, Inc. (Altus) is considered level 1 and is measured at fair value using a quoted price in an active market. Our ownership of alignment shares of Altus and our investment in Industrious and certain other non-controlling equity investments are considered level 3 which are measured at fair value using Monte Carlo and discounted cash flows. The valuation of Altus’ common shares and alignment shares are dependent on its stock price which could be volatile and subject to wide fluctuations in response to various market conditions. • Available for Sale Debt Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value. • Equity Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value. • Other assets / liabilities – Represents the fair value of the unfunded commitment related to a revolving facility. Valuations are based on discounted cash flow techniques, for which the significant inputs are the amount and timing of expected future cash flows, market comparables and recovery assumptions. As of December 31, 2022, it also included approximately $10 million of investment in a non-public entity which was transferred out of level 3 during 2023 and remeasured at December 31, 2023 using the measurement alternative as discussed above. • Derivative liability - The fair value of cross-currency swaps, executed in 2023, reflects the net present value of expected payments and receipts under the swap agreement based on the market's expectation of future foreign currency exchange rates. Additional inputs to the net present value calculation may include the contract terms, counterparty credit risk, and discount rates. • 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/or variable interest rates of these instruments, fair value approximates carrying value (see Notes 5 and 11). • Senior Term Loans – Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our senior term loans (comprised of tranche A Euro-denominated term loans and U.S. Dollar-denominated term loans issued in July 2023) was approximately $746.5 million and actual carrying value was $752.0 million at December 31, 2023. The above senior term loans were used to repay the prior euro term loan which had a fair value of $424.6 million and carrying value of $427.8 million at December 31, 2022. The above carrying values are net of unamortized debt issuance costs (see Note 11). • Senior Notes – Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our 5.950% senior notes was $1.0 billion at December 31, 2023. The actual carrying value of our 5.950% senior notes, net of unamortized debt issuance costs and discount, totaled $973.7 million at December 31, 2023. The estimated fair value of our 4.875% senior notes was $600.2 million and $595.2 million at December 31, 2023 and 2022, respectively. The actual carrying value of our 4.875% senior notes, net of unamortized debt issuance costs and discount, totaled $597.5 million and $596.4 million at December 31, 2023 and 2022, respectively. The estimated fair value of our 2.500% senior notes was $424.0 million and $396.8 million at December 31, 2023 and 2022, respectively. The actual carrying value of our 2.500% senior notes, net of unamortized debt issuance costs and discount, totaled $490.4 million and $489.3 million at December 31, 2023 and 2022, respectively (See Note 11). • Notes Payable on Real Estate – As of December 31, 2023 and 2022, the carrying value of our notes payable on real estate, net of unamortized debt issuance costs, was $36.3 million and $52.7 million, respectively. These notes payable were not recourse to CBRE Group, Inc., except for being recourse to the single-purpose entities that held the real estate assets and were the primary obligors on the notes payable. These borrowings have either fixed interest rates or floating interest rates at spreads added to a market index. Although it is possible that certain portions of our notes payable on real estate may have fair values that differ from their carrying values, based on the terms of such loans as compared to current market conditions, or other factors specific to the borrower entity, we do not believe that the fair value of our notes payable is significantly different than their carrying value. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (dollars in millions): December 31, Useful Lives 2023 2022 Computer hardware and software 2-10 years $ 1,341 $ 1,158 Leasehold improvements 1-15 years 658 611 Furniture and equipment 1-10 years 298 268 Construction in progress N/A 186 185 Total cost 2,483 2,222 Accumulated depreciation and amortization 1,576 1,386 Property and equipment, net $ 907 $ 836 Depreciation and amortization expense associated with property and equipment was $289.6 million, $260.8 million and $244.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. There were no asset impairment charges related to property and equipment during the years ended December 31, 2023, 2022 and 2021. Construction in progress includes capitalizable costs incurred during the development stage of computer software and leasehold improvements that have not yet been placed in service. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Our annual assessment of goodwill and other intangible assets deemed to have indefinite lives has historically been completed as of the beginning of the fourth quarter of each year. We performed the 2023, 2022 and 2021 annual assessments as of October 1 and determined that no impairment existed as the estimated fair value of our reporting units was in excess of their carrying value. During 2022, we identified a triggering event due to changing market conditions in our Real Estate Investments segment for the Telford Homes business. We recorded a non-cash goodwill impairment charge of $26.4 million associated with this reporting unit attributable to the effects of elevated inflation on construction, materials and labor costs, driving an increase in Telford Homes’ risk as the contractor and reducing the profitability of current projects. The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 (dollars in millions): Advisory Global Real Estate Total Balance as of December 31, 2021 Goodwill $ 3,299 $ 2,174 $ 616 $ 6,089 Accumulated impairment losses (762) (175) (157) (1,094) 2,537 1,999 459 4,995 Purchase accounting entries related to acquisitions 20 60 — 80 Impairment — — (26) (26) Foreign exchange movement (36) (124) (21) (181) Balance as of December 31, 2022 Goodwill 3,283 2,110 595 5,988 Accumulated impairment losses (762) (175) (183) (1,120) 2,521 1,935 412 4,868 Purchase accounting entries related to acquisitions 91 93 3 187 Impairment — — — — Foreign exchange movement 9 57 8 74 Balance as of December 31, 2023 Goodwill 3,383 2,260 606 6,249 Accumulated impairment losses (762) (175) (183) (1,120) $ 2,621 $ 2,085 $ 423 $ 5,129 Other intangible assets totaled $2.1 billion, net of accumulated amortization of $2.2 billion as of December 31, 2023, and $2.2 billion, net of accumulated amortization of $1.9 billion, as of December 31, 2022 and are comprised of the following (dollars in millions): December 31, 2023 2022 Gross Accumulated Gross Accumulated Unamortizable intangible assets: Management contracts $ 62 $ 60 Trademarks 317 312 379 372 Amortizable intangible assets: Customer relationships 1,727 $ (893) 1,637 $ (774) Mortgage servicing rights 1,055 (556) 1,030 (469) Trademarks/Trade names 315 (147) 305 (129) Management contracts 122 (121) 149 (146) Covenant not to compete 4 (1) 4 (1) Other 658 (461) 612 (397) 3,881 (2,179) 3,737 (1,916) Total intangible assets $ 4,260 $ (2,179) $ 4,109 $ (1,916) Unamortizable intangible assets include management contracts identified as a result of the ING Group N.V. (ING) Real Estate Investment Management (REIM) operations in Europe and Asia, as well as substantially all of Clarion Real Estate Securities (CRES) in 2011 (collectively referred to as the REIM Acquisitions) relating to relationships with open-end funds, a trademark separately identified as a result of the CBRE Services, Inc. (CBRE Services) in 2001 (the 2001 Acquisition), a trade name separately identified in connection with the REIM Acquisitions and a trademark separately identified as part of the Turner & Townsend transaction. Customer relationships relate to existing relationships acquired through acquisitions mainly in our Global Workplace Solutions segment that are being amortized over useful lives of up to 20 years. Mortgage servicing rights represent the carrying value of servicing assets in the U.S. in our Advisory Services segment. The mortgage servicing rights are being amortized over the estimated period that net servicing income is expected to be received, which is typically up to 10 years. See Mortgage Servicing Rights discussion within Note 2 for additional information. Trademarks are primarily from our 2015 acquisition of the Global Workplace Solutions business from Johnson Controls, Inc., which are being amortized over 20 years. During 2022, we recorded a non-cash impairment of approximately $21.9 million for trademarks associated with our Telford Homes business in the Real Estate Investments segment due to the impact of the inflationary conditions on construction materials negatively impacting cash flows (see Note 7). Management contracts consist primarily of asset management contracts relating to relationships with closed-end funds and separate accounts in the U.S., Europe and Asia that were separately identified as a result of the REIM Acquisitions. These management contracts are being amortized over useful lives of up to 13 years. Other amortizable intangible assets mainly represent transition costs, which primarily get amortized to cost of revenue over the life of the associated contract. It also includes a backlog related intangible identified as part of the Turner & Townsend transaction. Amortization expense related to intangible assets, excluding amortization of transition costs, was $321.8 million, $348.0 million and $276.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. The estimated annual amortization expense, excluding amortization of transition costs, for each of the years ending December 31, 2024 through December 31, 2028 and thereafter approximates $289.8 million, $244.0 million, $197.4 million, $162.6 million, $142.4 million and $512.4 million, respectively. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries | Investments in Unconsolidated Subsidiaries Investments in unconsolidated subsidiaries are accounted for under the equity method of accounting. Our investment ownership percentages in equity method investments vary, generally ranging from 1.0% to 50.0%. The following table represents the composition of investment in unconsolidated subsidiaries under equity method of accounting and fair value option (dollars in millions): December 31, Investment type 2023 2022 Real Estate Investments (in projects and funds) $ 661 $ 623 Investment in Altus: Class A common stock (1) 168 160 Alignment shares (2) 56 60 Subtotal 224 220 Other (3) 489 475 Total investment in unconsolidated subsidiaries $ 1,374 $ 1,318 ________________________________________________________________________________________________________________________________________ (1) CBRE held 24,556,012 and 24,554,201 shares of Altus Class A common stock as of December 31, 2023 and December 31, 2022, respectively, representing approximate ownership of 15.57%. (2) The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common stock based on the achievement of certain total return thresholds on Altus Class A common stock as of the relevant measurement date over the seven fiscal years following the merger. As of March 31, 2023 (the second measurement date), 201,250 of alignment shares automatically converted into 2,011 shares of Class A common stock, of which CBRE was entitled to 1,811 shares. (3) Consists of our investments in Industrious and other non-public entities. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in millions): December 31, 2023 2022 Combined Condensed Balance Sheets Information: Current assets $ 8,884 $ 9,044 Non-current assets 44,116 45,616 Total assets $ 53,000 $ 54,660 Current liabilities $ 1,905 $ 2,346 Non-current liabilities 17,288 15,858 Total liabilities $ 19,193 $ 18,204 Non-controlling interests $ 1,065 $ 926 Year Ended December 31, 2023 2022 2021 Combined Condensed Statements of Operations Information: Revenue $ 7,178 $ 2,783 $ 2,681 Operating income 4,984 1,215 1,371 Net income (1) 760 4,102 3,260 _______________ (1) Included in net income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income. Our Real Estate Investments segment invests our own capital in certain real estate investment funds with clients. We provided investment management, property management, brokerage and other professional services in connection with these real estate investments and earned revenues from these unconsolidated subsidiaries of $278.8 million, $268.9 million and $213.5 million during the years ended December 31, 2023, 2022 and 2021, respectively. We had receivables of $83.2 million and $73.2 million at December 31, 2023 and 2022, respectively, from these entities. Additionally, in our global development business, we earned development and construction management revenues from these unconsolidated subsidiaries of $165.0 million, $147.8 million and $104.3 million during the years ended December 31, 2023, 2022 and 2021. We had receivables of $30.4 million and $21.1 million at December 31, 2023 and 2022, respectively, from these entities. |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | Long-Term Debt and Short-Term Borrowings Total long-term debt and short-term borrowings consist of the following (dollars in millions): December 31, 2023 2022 Long-Term Debt Senior term loans $ 755 $ 428 5.950% senior notes due in 2034, net of unamortized discount 976 — 4.875% senior notes due in 2026, net of unamortized discount 599 598 2.500% senior notes due in 2031, net of unamortized discount 494 494 Total long-term debt 2,824 1,520 Less: current maturities of long-term debt 9 428 Less: unamortized debt issuance costs 11 6 Total long-term debt, net of current maturities $ 2,804 $ 1,086 Short-Term Borrowings Warehouse lines of credit, with interest ranging from 5.51% to 8.15%, due in 2024 $ 666 $ 448 Revolving credit facility, with interest ranging from 5.03% to 5.23% — 178 Other 16 43 Total short-term borrowings $ 682 $ 669 Future annual aggregate maturities of total consolidated gross debt (excluding unamortized discount, premium and debt issuance costs) at December 31, 2023 are as follows (dollars in millions): 2024—$692; 2025—$38; 2026—$638; 2027—$38; 2028—$632 and $1,500 thereafter. Long-Term Debt We maintain credit facilities with third-party lenders, which we use for a variety of purposes. On July 10, 2023, CBRE Group, Inc., CBRE Services, Inc. (CBRE Services) and Relam Amsterdam Holdings B.V., a wholly-owned subsidiary of CBRE Services, entered into a new 5-year senior unsecured Credit Agreement (the 2023 Credit Agreement) maturing on July 10, 2028, which refinanced and replaced the 2022 Credit Agreement (as described below). The 2023 Credit Agreement provides for a senior unsecured term loan credit facility comprised of (i) tranche A Euro-denominated term loans in an aggregate principal amount of €366.5 million and (ii) tranche A U.S. Dollar-denominated term loans in an aggregate principal amount of $350.0 million, both requiring quarterly principal payments beginning on December 31, 2024 and continuing through maturity on July 10, 2028. The proceeds of the term loans under the 2023 Credit Agreement were applied to the repayment of all remaining outstanding senior term loans under the prior 2022 Credit Agreement, the payment of related fees and expenses and other general corporate purposes. We entered into a cross currency swap to hedge the associated foreign currency exposure related to this transaction. The fair value of the derivative instrument was immaterial as of December 31, 2023. Borrowings denominated in euros under the 2023 Credit Agreement bear interest at a rate equal to (i) the applicable percentage plus (ii) at our option, either (1) the EURIBOR rate for the applicable interest period or (2) a rate determined by reference to Daily Simple Euro Short-Term Rate (ESTR). Borrowings denominated in U.S. dollars under the 2023 Credit Agreement bear interest at a rate equal to (i) the applicable percentage, plus (ii) at our option, either (1) the Term SOFR rate for the applicable interest period plus 10 basis points or (2) a base rate determined by the reference to the greatest of (x) the prime rate, (y) the federal funds rate plus 1/2 of 1% and (z) the sum of (A) Term SOFR rate published by CME Group Benchmark Administration Limited for an interest period of one month and (B) 1.00%. The applicable rate for borrowings under the 2023 Credit Agreement is determined by reference to our Credit Rating (as defined in the 2023 Credit Agreement). As of December 31, 2023, we had (i) $404.0 million of euro term loan borrowings outstanding under the 2023 Credit Agreement (at an interest rate of 1.25% plus EURIBOR) and (ii) $348.0 million of U.S. Dollar term loan borrowings outstanding under the 2023 Credit Agreement (at an interest rate of 1.35% plus Term SOFR), net of unamortized debt issuance costs, included in the accompanying consolidated balance sheets. The term loan borrowings under the 2023 Credit Agreement are guaranteed on a senior basis by CBRE Group, Inc. and CBRE Services. The 2023 Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the 2023 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 2023 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 2023 Credit Agreement), 4.75x) as of the end of each fiscal quarter. In addition, the 2023 Credit Agreement also contains other customary affirmative and negative covenants and events of default. We were in compliance with the covenants under this agreement as of December 31, 2023. The prior 2022 Credit Agreement was a senior unsecured credit facility that was guaranteed by CBRE Group, Inc. and CBRE Services. The 2022 Credit Agreement provided for a €400.0 million term loan facility payable in full at maturity on December 20, 2023. A $3.15 billion revolving credit facility, which included the capacity to obtain letters of credit and swingline loans and would have terminated on March 4, 2024, was previously provided under this agreement and was replaced with a new $3.5 billion 5-year senior unsecured Revolving Credit Agreement entered into on August 5, 2022 (as described below). The proceeds of the term loans under the 2023 Credit Agreement were applied to the repayment of all remaining outstanding loans under the 2022 Credit Agreement at which time the 2022 Credit Agreement was repaid in full and terminated. On June 23, 2023, CBRE Services issued $1.0 billion in aggregate principal amount of 5.950% senior notes due August 15, 2034 (the 5.950% senior notes) at a price equal to 98.174% of their face value. The 5.950% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to its current and future secured indebtedness (if any) to the extent of the value of the assets securing such indebtedness. The 5.950% senior notes are guaranteed on a senior basis by CBRE Group, Inc. Interest accrues at a rate of 5.950% per year and is payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2024. The 5.950% senior notes are redeemable at our option, in whole or in part, on or after May 15, 2034 at a redemption price of 100% of the principal amount on that date, plus accrued and unpaid interest, if any, to, but excluding the date of redemption. At any time prior to May 15, 2034, we may redeem all or a portion of the notes at a redemption price equal to the greater of (1) 100% of the principal amount of the notes to be redeemed and (2) the sum of the present value at the date of redemption of the remaining scheduled payments of principal and interest thereon to May 15, 2034, assuming the notes matured on May 15, 2034, discounted to the date of redemption on a semi-annual basis at an adjusted rate equal to the treasury rate plus 40 basis points, minus accrued interest to the date of redemption, plus, in either case, accrued and unpaid interest, if any, to the redemption date. The amount of the 5.950% senior notes, net of unamortized discount and unamortized debt issuance costs, included in the accompanying consolidated balance sheet was $973.7 million at December 31, 2023. On March 18, 2021, CBRE Services issued $500.0 million in aggregate principal amount of 2.500% senior notes due April 1, 2031 (the 2.500% senior notes) at a price equal to 98.451% of their face value. The 2.500% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness. The 2.500% senior notes are guaranteed on a senior basis by CBRE Group, Inc. Interest accrues at a rate of 2.500% per year and is payable semi-annually in arrears on April 1 and October 1 of each year. The 2.500% senior notes are redeemable at our option, in whole or in part, on or after January 1, 2031 at a redemption price of 100% of the principal amount on that date, plus accrued and unpaid interest, if any, to, but excluding the date of redemption. At any time prior to January 1, 2031, we may redeem all or a portion of the notes at a redemption price equal to the greater of (1) 100% of the principal amount of the notes to be redeemed and (2) the sum of the present value at the date of redemption of the remaining scheduled payments of principal and interest thereon to January 1, 2031, assuming the notes matured on January 1, 2031, discounted to the date of redemption on a semi-annual basis at an adjusted rate equal to the treasury rate plus 20 basis points, minus accrued and unpaid interest to, but excluding, the date of redemption, plus, in either case, accrued and unpaid interest, if any, to, but not including, the redemption date. The amount of the 2.500% senior notes, net of unamortized discount and unamortized debt issuance costs, included in the accompanying consolidated balance sheet was $490.4 million and $489.3 million at December 31, 2023 and 2022, respectively. On August 13, 2015, CBRE Services issued $600.0 million in aggregate principal amount of 4.875% senior notes due March 1, 2026 (the 4.875% senior notes) at a price equal to 99.24% of their face value. The 4.875% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness. The 4.875% senior notes are guaranteed on a senior basis by CBRE Group, Inc. Interest accrues at a rate of 4.875% per year and is payable semi-annually in arrears on March 1 and September 1 of each year. The 4.875% senior notes are redeemable at our option, in whole or in part, prior to December 1, 2025 at a redemption price equal to the greater of (1) 100% of the principal amount of the 4.875% senior notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon to December 1, 2025 (not including any portions of payments of interest accrued as of the date of redemption) discounted to the date of redemption on a semi-annual basis at the Adjusted Treasury Rate (as defined in the indenture governing these notes). In addition, at any time on or after December 1, 2025, the 4.875% senior notes may be redeemed by us, in whole or in part, at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest, if any, to (but excluding) the date of redemption. If a change of control triggering event (as defined in the indenture governing these notes) occurs, we are obligated to make an offer to purchase the then outstanding 4.875% senior notes at a redemption price of 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase. The amount of the 4.875% senior notes, net of unamortized discount and unamortized debt issuance costs, included in the accompanying consolidated balance sheets was $597.5 million and $596.4 million at December 31, 2023 and 2022, respectively. The indentures governing our 5.950% senior notes, 4.875% senior notes and 2.500% senior notes (1) 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, and (2) require that the notes be jointly and severally guaranteed on a senior basis by CBRE Group, Inc. and any domestic subsidiary that guarantees the 2023 Credit Agreement or the Revolving Credit Agreement. The indentures also contain other customary affirmative and negative covenants and events of default. We were in compliance with the covenants under our debt instruments as of December 31, 2023. Short-Term Borrowings We had short-term borrowings of $682.4 million and $668.8 million as of December 31, 2023 and 2022, respectively, with related weighted average interest rates of 6.8% and 5.6%, respectively, which are included in the accompanying consolidated balance sheets. Revolving Credit Agreement On August 5, 2022, we entered into a new 5-year senior unsecured Revolving Credit Agreement (the Revolving Credit Agreement). The Revolving Credit Agreement provides for a senior unsecured revolving credit facility available to CBRE Services with a capacity of $3.5 billion and a maturity date of August 5, 2027. Borrowings bear interest at (i) CBRE Services’ option, either (a) a Term SOFR rate published by CME Group Benchmark Administration Limited for the applicable interest period or (b) a base rate determined by reference to the greatest of (1) the prime rate determined by Wells Fargo, (2) the federal funds rate plus 1/2 of 1% and (3) the sum of (x) a Term SOFR rate published by CME Group Benchmark Administration Limited for an interest period of one month and (y) 1.00% plus (ii) 10 basis points, plus (iii) a rate equal to an applicable rate (in the case of borrowings based on the Term SOFR rate, 0.630% to 1.100% and in the case of borrowings based on the base rate, 0.0% to 0.100%, in each case, as determined by reference to our Debt Rating (as defined in the Revolving Credit Agreement)). The applicable rate is also subject to certain increases and/or decreases specified in the Revolving Credit Agreement linked to achieving certain sustainability goals. The Revolving Credit Agreement requires us to pay a fee based on the total amount of the revolving credit facility commitment (whether used or unused). In addition, the Revolving Credit Agreement also includes capacity for letters of credit not to exceed $300.0 million in the aggregate. The Revolving Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the Revolving 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 Revolving 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 Revolving Credit Agreement), 4.75x) as of the end of each fiscal quarter. In addition, the Revolving Credit Agreement also contains other customary affirmative and negative covenants and events of default. We were in compliance with the covenants under this agreement as of December 31, 2023. As of December 31, 2023, no amount was outstanding under the Revolving Credit Agreement. No letters of credit were outstanding as of December 31, 2023. Letters of credit are issued in the ordinary course of business and would reduce the amount we may borrow under the Revolving Credit Agreement. Turner & Townsend Revolving Credit Facilities Turner & Townsend has a revolving credit facility with a capacity of £120.0 million and an additional accordion option of £20.0 million that matures on March 31, 2027. As of December 31, 2023, $10.2 million (£8.0 million) was outstanding under this revolving credit facility bearing interest at SONIA plus 0.75%. Warehouse Lines of Credit CBRE Capital Markets has warehouse lines of credit with third-party lenders for the purpose of funding mortgage loans that will be resold, and a funding arrangement with Fannie Mae for the purpose of selling a percentage of certain closed multifamily loans to Fannie Mae. These warehouse lines are recourse only to CBRE Capital Markets and are secured by our related warehouse receivables. See Note 5 for additional information. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in millions): December 31, Category Classification 2023 2022 Assets Operating Operating lease assets $ 1,030 $ 1,033 Financing Other assets, net 210 91 Total leased assets $ 1,240 $ 1,124 Liabilities Current: Operating Operating lease liabilities $ 242 $ 230 Financing Other current liabilities 36 33 Non-current: Operating Non-current operating lease liabilities 1,089 1,080 Financing Other liabilities 72 58 Total lease liabilities $ 1,439 $ 1,401 Components of lease cost are as follows (dollars in millions): Year Ended December 31, Component Classification 2023 2022 Operating lease cost Operating, administrative and other $ 220 $ 196 Financing lease cost: Amortization of right-to-use assets (1) 36 31 Interest on lease liabilities Interest expense 1 1 Variable lease cost (2) 115 79 Sublease income Revenue (5) (4) Total lease cost $ 367 $ 303 ________________________________________________________________________________________________________________________________________ (1) Amortization costs of $25.2 million and $26.4 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Amortization costs of $10.8 million and $4.2 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. (2) Variable lease costs of $24.0 million and $23.6 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Variable lease costs of $64.1 million and $55.6 million from all other leases are included in the “Operating, administrative and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows: December 31, 2023 2022 Weighted-average remaining lease term: Operating leases (1) 41 years 42 years Financing leases (2) 71 years 75 years Weighted-average discount rate: Operating leases (1) 4.8% 4.5% Financing leases (2) 5.2% 5.1% ________________________________________________________________________________________________________________________________________ (1) Operating leases as of December 31, 2023 and 2022 include three 90+ year leases on real estate under development. If excluded, the weighted-average remaining lease term would be 7 years (for both years) and weighted-average discount rate would be 3.5% as of December 31, 2023 and 3.0% as of December 31, 2022. (2) Finance leases as of December 31, 2023 and 2022 included a 99 year lease on real estate held for investment. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 2.5%, respectively, as of December 31, 2023 and 3 years and 1.7%, respectively, as of December 31, 2022. This excludes certain land leases up to 999 years held by our U.K. development business. Maturities of lease liabilities by fiscal year as of December 31, 2023 are as follows (dollars in millions): Operating Financing 2024 $ 239 $ 38 2025 226 27 2026 210 19 2027 161 11 2028 127 4 Thereafter 1,241 218 Total remaining lease payments at December 31, 2023 2,204 317 Less: Interest 873 209 Present value of lease liabilities at December 31, 2023 $ 1,331 $ 108 Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in millions): Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 237 $ 237 Operating cash outflows from financing leases 3 2 Financing cash outflows from financing leases 38 38 Right-of-use assets obtained in exchange for new operating lease liabilities 154 164 Right-of-use assets obtained in exchange for new financing lease liabilities 54 31 Other non-cash increases in operating lease right-of-use assets (1) 6 32 Other non-cash increases in financing lease right-of-use assets (1) 100 6 ________________________________________________________________________________________________________________________________________ (1) The non-cash activity in the right-of-use assets resulted from lease modifications/remeasurements and terminations. |
Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in millions): December 31, Category Classification 2023 2022 Assets Operating Operating lease assets $ 1,030 $ 1,033 Financing Other assets, net 210 91 Total leased assets $ 1,240 $ 1,124 Liabilities Current: Operating Operating lease liabilities $ 242 $ 230 Financing Other current liabilities 36 33 Non-current: Operating Non-current operating lease liabilities 1,089 1,080 Financing Other liabilities 72 58 Total lease liabilities $ 1,439 $ 1,401 Components of lease cost are as follows (dollars in millions): Year Ended December 31, Component Classification 2023 2022 Operating lease cost Operating, administrative and other $ 220 $ 196 Financing lease cost: Amortization of right-to-use assets (1) 36 31 Interest on lease liabilities Interest expense 1 1 Variable lease cost (2) 115 79 Sublease income Revenue (5) (4) Total lease cost $ 367 $ 303 ________________________________________________________________________________________________________________________________________ (1) Amortization costs of $25.2 million and $26.4 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Amortization costs of $10.8 million and $4.2 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. (2) Variable lease costs of $24.0 million and $23.6 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Variable lease costs of $64.1 million and $55.6 million from all other leases are included in the “Operating, administrative and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows: December 31, 2023 2022 Weighted-average remaining lease term: Operating leases (1) 41 years 42 years Financing leases (2) 71 years 75 years Weighted-average discount rate: Operating leases (1) 4.8% 4.5% Financing leases (2) 5.2% 5.1% ________________________________________________________________________________________________________________________________________ (1) Operating leases as of December 31, 2023 and 2022 include three 90+ year leases on real estate under development. If excluded, the weighted-average remaining lease term would be 7 years (for both years) and weighted-average discount rate would be 3.5% as of December 31, 2023 and 3.0% as of December 31, 2022. (2) Finance leases as of December 31, 2023 and 2022 included a 99 year lease on real estate held for investment. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 2.5%, respectively, as of December 31, 2023 and 3 years and 1.7%, respectively, as of December 31, 2022. This excludes certain land leases up to 999 years held by our U.K. development business. Maturities of lease liabilities by fiscal year as of December 31, 2023 are as follows (dollars in millions): Operating Financing 2024 $ 239 $ 38 2025 226 27 2026 210 19 2027 161 11 2028 127 4 Thereafter 1,241 218 Total remaining lease payments at December 31, 2023 2,204 317 Less: Interest 873 209 Present value of lease liabilities at December 31, 2023 $ 1,331 $ 108 Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in millions): Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 237 $ 237 Operating cash outflows from financing leases 3 2 Financing cash outflows from financing leases 38 38 Right-of-use assets obtained in exchange for new operating lease liabilities 154 164 Right-of-use assets obtained in exchange for new financing lease liabilities 54 31 Other non-cash increases in operating lease right-of-use assets (1) 6 32 Other non-cash increases in financing lease right-of-use assets (1) 100 6 ________________________________________________________________________________________________________________________________________ (1) The non-cash activity in the right-of-use assets resulted from lease modifications/remeasurements and terminations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are a party to a number of pending or threatened lawsuits arising out of, or incident to, our ordinary course of business. We believe that any losses in excess of the amounts accrued as liabilities on our consolidated financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our consolidated financial statements if one or more matters are resolved in a particular period in an amount materially in excess of what we anticipated. In January 2008, CBRE MCI, a wholly-owned subsidiary of CBRE Capital Markets, entered into an agreement with Fannie Mae under Fannie Mae’s 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 with unpaid principal balances of $41.5 billion at December 31, 2023, of which $38.0 billion is subject to such loss sharing arrangements. CBRE MCI, under its agreement with Fannie Mae, must post cash reserves or other acceptable collateral under formulas established by Fannie Mae to provide for sufficient capital in the event losses occur. As of December 31, 2023 and 2022, CBRE MCI had $140.0 million and $113.0 million, respectively, of letters of credit under this reserve arrangement and had recorded a liability of approximately $67.4 million and $65.1 million, respectively, for its loan loss guarantee obligation under such arrangement. Fannie Mae’s recourse under the DUS Program is limited to the assets of CBRE MCI, which assets totaled approximately $651.7 million (including $215.1 million of warehouse receivables, a substantial majority of which are pledged against warehouse lines of credit and are therefore not available to Fannie Mae) at December 31, 2023. CBRE Capital Markets participates in Freddie Mac’s Multifamily Small Balance Loan (SBL) Program. Under the SBL program, CBRE Capital Markets has certain repurchase and loss reimbursement obligations. We could potentially be obligated to repurchase any SBL loan originated by CBRE Capital Markets that remains in default for 120 days following the forbearance period, if the default occurred during the first 12 months after origination and such loan had not been earlier securitized. In addition, CBRE Capital Markets may be responsible for a loss not to exceed 10% of the original principal amount of any SBL loan that is not securitized and goes into default after the 12-month repurchase period. CBRE Capital Markets must post a cash reserve or other acceptable collateral to provide for sufficient capital in the event the obligations are triggered. As of both December 31, 2023 and 2022, CBRE Capital Markets had posted a $5.0 million letter of credit under this reserve arrangement. We had outstanding letters of credit totaling $236.9 million as of December 31, 2023, excluding letters of credit for which we have outstanding liabilities already accrued on our consolidated balance sheet related to our subsidiaries’ outstanding reserves for claims under certain insurance programs as well as letters of credit related to operating leases. The CBRE Capital Markets letters of credit totaling $145.0 million as of December 31, 2023 referred to in the preceding paragraphs represented the majority of the $236.9 million outstanding letters of credit as of such date. The remaining letters of credit are primarily executed by us in the ordinary course of business and expire at the end of each of the respective agreements. We had guarantees totaling $206.2 million as of December 31, 2023, 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 $206.2 million primarily represents guarantees executed by us in the ordinary course of business, including various guarantees of management and vendor contracts in our operations overseas, which expire at the end of each of the respective agreements. In addition, as of December 31, 2023, we had issued numerous non-recourse carveout, completion and budget guarantees relating to development projects for the benefit of third parties. These guarantees are commonplace in our industry and are made by us in the ordinary course of our Real Estate Investments business. Non-recourse carveout guarantees generally require that our project-entity borrower not commit specified improper acts, with us potentially liable for all or a portion of such entity’s indebtedness or other damages suffered by the lender if those acts occur. Completion and budget guarantees generally require us to complete construction of the relevant project within a specified timeframe and/or within a specified budget, with us potentially being liable for costs to complete in excess of such timeframe or budget. While there can be no assurance, we do not expect to incur any material losses under these guarantees. An important part of the strategy for our Real Estate Investments segment involves co-investing our capital in certain real estate investments with our clients. For our investment funds, we generally co-invest up to 2.0% of the equity in a particular fund. As of December 31, 2023, we had aggregate future commitments of $180.4 million related to co-investment funds. Additionally, we make selective investments in real estate development projects on our own account or co-invest with our clients with up to 50% of the project’s equity as a principal in unconsolidated real estate projects. We had unfunded capital commitments of $230.1 million and $73.9 million to consolidated and unconsolidated projects, respectively, as of December 31, 2023. Also refer to Note 22 for the Telford Fire Safety Remediation provision. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Stock Incentive Plans 2017 Equity Incentive Plan Our 2017 Equity Incentive Plan (the 2017 Plan) was adopted by our board of directors and approved by our stockholders on May 19, 2017. The 2017 Plan authorized the grant of stock-based awards to our employees, directors and independent contractors. Our 2017 Plan was terminated in May 2019 in connection with the adoption of our 2019 Equity Incentive Plan (the 2019 Plan), which is described below. At termination of the 2017 Plan, no unissued shares from the 2017 Plan were allocated to the 2019 Plan for potential future issuance. As of December 31, 2023, 1,605,479 restricted stock unit (RSU) awards to acquire shares of our Class A common stock granted under the 2017 Plan remain outstanding according to their terms, and we will continue to issue shares to the extent required under the terms of such outstanding awards (noting that any shares granted above target will get deducted from the 2019 Plan reserve as noted below). Shares underlying awards outstanding under the 2017 Plan at termination that are subsequently canceled, forfeited or terminated without issuance to the holder thereof will be available for grant under the 2019 Plan. 2019 Equity Incentive Plan Our 2019 Plan was adopted by our board of directors on March 1, 2019 and approved by our stockholders on May 17, 2019. The 2019 Plan authorizes the grant of stock-based awards to employees, directors and independent contractors. Unless terminated earlier, the 2019 Plan will terminate on March 1, 2029. A total of 9,900,000 shares of our Class A common stock are reserved for issuance under the 2019 Plan, less 189,499 shares granted under the 2017 Plan between March 1, 2019, the date our board of directors approved the plan, and May 17, 2019, the date our stockholders approved the 2019 Plan. Additionally, as mentioned above, shares underlying awards outstanding under the 2017 Plan at termination that are subsequently canceled, forfeited or terminated without issuance to the holder thereof will be available for reissuance under the 2019 Plan. On May 27, 2022, an additional 7,700,000 shares of our Class A common stock was reserved for issuance under the 2019 Plan. As of December 31, 2023, 917,442 shares were cancelled and 1,078,267 shares were withheld for payment of taxes under the 2017 Plan and added to the authorized pool for the 2019 Plan, bringing the total authorized amount under the 2019 Plan to 19,406,210 shares of our Class A common stock. Shares underlying expired, canceled, forfeited or terminated awards under the 2019 Plan (other than awards granted in substitution of an award previously granted), plus those utilized to pay tax withholding obligations with respect to an award (other than an option or stock appreciation right) will be available for reissuance. Awards granted under the 2019 Plan are subject to a minimum vesting condition of one year. As of December 31, 2023, assuming the maximum number of shares under our performance-based awards will later be issued (which includes shares that could be issued over target related to performance awards issued and outstanding under the 2017 Plan), 9,040,592 shares remained available for future grants under this plan. The number of shares issued or reserved pursuant to the 2017 Plan and 2019 Plan are subject to adjustment on account of a stock split of our outstanding shares, stock dividend, dividend payable in a form other than shares in an amount that has a material effect on the price of the shares, consolidation, combination or reclassification of the shares, recapitalization, spin-off, or other similar occurrences. Non-Vested Stock Awards We have issued non-vested stock awards, including RSUs and restricted shares, in our Class A common stock to certain of our employees, independent contractors and members of our board of directors. The following is a summary of the awards granted during the years ended December 31, 2023, 2022 and 2021. • During the year ended December 31, 2023, we granted RSUs that are performance vesting in nature, with 896,742 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 1,216,384 RSUs that are time vesting in nature. • During the year ended December 31, 2022, we granted RSUs that are performance vesting in nature, with 1,223,849 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 1,154,113 RSUs that are time vesting in nature. • During the year ended December 31, 2021, we granted RSUs that are performance vesting in nature, with 734,352 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 969,299 RSUs that are time vesting in nature. Our annual performance-vesting awards generally vest in full three years from the grant date, based on our achievement against various adjusted income per share performance targets. Our time-vesting awards generally vest 25% per year over four years from the grant date. We made a special grant of RSUs under our 2017 Plan (2017 Special RSU grant) to certain of our employees, with 3,288,618 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 939,605 RSUs that are time vesting in nature. During 2021, we granted additional RSUs under this program to certain of our employees, with 146,080 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels. There were no time vesting RSUs associated with the 2021 grants. As a condition to this 2017 Special RSU grant, each participant has agreed to execute a Restrictive Covenants Agreement. Each 2017 Special RSU grant (except the ones granted during 2021, which are all performance based) consisted of: (i) Total Shareholder Return (TSR) Performance RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. The actual number of TSR Performance RSUs that vested on December 1, 2023, was determined by measuring our cumulative TSR against the cumulative TSR of each of the other companies comprising the S&P 500 on the grant date (the Comparison Group) over a six year measurement period commencing on the grant date and ending on December 1, 2023. For purposes of measuring TSR, the initial value of our common stock was the average closing price of such common stock for the 60 trading days immediately preceding the grant date and the final value of our common stock was the average closing price of such common stock for the 60 trading days immediately preceding December 1, 2023. (ii) Time Vesting RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. (iii) EPS Performance RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. The actual number of EPS Performance RSUs that will vest is determined by measuring our cumulative adjusted income per share growth against the cumulative EPS growth, as reported under GAAP (GAAP EPS), of each of the other members of the Comparison Group over a six year measurement period commencing on January 1, 2018 and ending on December 31, 2023. The Time Vesting and TSR Performance RSUs subject to the 2017 Special RSU grants vested on December 1, 2023, while the EPS Performance RSUs subject to the 2017 Special RSU grants vested on December 31, 2023. We granted RSUs under our 2019 Plan (Segment RSU Grant) to certain of our employees in Advisory Services and GWS segments in 2021 and 2022, with 1,630,846 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 465,956 RSUs that are time vesting in nature. As a condition to this Segment RSU grant, each participant has agreed to execute a Restrictive Covenants Agreement. Each Segment RSU grant consisted of: (i) Segment Performance RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. The actual number of Segment Performance RSUs that will vest is determined by measuring growth in certain segment specific metrics such as client operating profit, segment operating profit and major markets over a five year measurement period commencing on January 1, 2022 and ending on December 31, 2026. (ii) Time Vesting RSUs with respect to 33.3% of the total number of target RSUs subject to the grant, which cliff vests on November 10, 2026. (iii) EPS Performance RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. The actual number of EPS Performance RSUs that will vest is determined by measuring our cumulative adjusted earnings per share growth against the cumulative EPS growth, as reported under GAAP, to a comparative group comprised of each of the other companies comprising the S&P 500 on the grant date over a five year measurement period commencing on January 1, 2022 and ending on December 31, 2026. In February 2022, we made a special grant of RSUs under our 2019 Plan (2022 Special RSU grant) to our CEO, with 88,715 reflecting the maximum number of RSUs that may be issued if all of the performance targets are satisfied at their highest levels, and 25,347 RSUs that are time vesting in nature. As a condition to this 2022 Special RSU grant, the CEO has agreed to execute a Restrictive Covenants Agreement. This 2022 Special RSU grant consisted of: (i) Total Shareholder Return (TSR) Performance RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. The actual number of TSR Performance RSUs that will vest is determined by measuring our cumulative TSR against the cumulative TSR of each of the other companies comprising the S&P 500 on the Grant Date (the Comparison Group) over a five year measurement period commencing on January 1, 2022 and ending on December 31, 2026. For purposes of measuring TSR, the initial value of our common stock was the average closing price of such common stock for the 60 trading days immediately preceding January 1, 2022, and the final value of our common stock will be the average closing price of such common stock for the 60 trading days immediately preceding December 31, 2026. (ii) Time Based RSUs with respect to 33.3% of the total number of target RSUs subject to the grant, vesting on February 25, 2027. (iii) EPS Performance RSUs with respect to 33.3% of the total number of target RSUs subject to the grant. The actual number of EPS Performance RSUs that will vest is determined by measuring our cumulative adjusted income per share growth against the cumulative EPS growth, as reported under GAAP (GAAP EPS), of each of the other members of the Comparison Group over a five year measurement period commencing on January 1, 2022 and ending on December 31, 2026. These RSUs vest on December 31, 2026. We estimated the fair value of the TSR Performance RSUs referred to above on the date of the grant using a Monte Carlo simulation with the following assumptions: Year Ended December 31, 2022 2021 (1) Volatility of common stock 35.55 % 42.71% - 45.80% Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 1.84 % 0.25% - 0.28% ________________________________________________________________________________________________________________________________________ (1) 2021 grants were made during different dates therefore a range of inputs is presented. A summary of the status of our non-vested stock awards is presented in the table below: Shares/Units Weighted Average Balance at December 31, 2020 6,683,412 $ 47.99 Granted 2,531,959 92.16 Performance award achievement adjustments (189,930) 49.76 Vested (1,883,652) 46.34 Forfeited (292,998) 55.80 Balance at December 31, 2021 6,848,791 64.10 Granted 1,796,196 95.01 Performance award achievement adjustments 409,851 77.99 Vested (1,372,123) 57.74 Forfeited (269,636) 79.33 Balance at December 31, 2022 7,413,079 73.67 Granted 1,664,755 78.46 Performance award achievement adjustments 365,965 81.14 Vested (4,001,675) 59.62 Forfeited (221,545) 81.14 Balance at December 31, 2023 5,220,579 86.17 Total compensation expense related to non-vested stock awards was $96.2 million, $160.3 million and $184.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. At December 31, 2023, total unrecognized estimated compensation cost related to non-vested stock awards was approximately $181.3 million, which is expected to be recognized over a weighted average period of approximately 2.6 years. Bonuses We have bonus programs covering select employees, including senior management. Awards are based on the position and performance of the employee and the achievement of pre-established financial, operating and strategic objectives. The amounts charged to operating expense for bonuses were $696.6 million, $843.1 million and $871.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. 401(k) Plan Our CBRE 401(k) Plan (401(k) Plan) is a defined contribution savings plan that allows participant deferrals under Section 401(k) of the Internal Revenue Code (IRC). Most of our U.S. employees, other than qualified real estate agents having the status of independent contractors under section 3508 of the IRC of 1986, as amended, and non-plan electing union employees, are eligible to participate in the plan. The 401(k) Plan provides for participant contributions as well as a company match. A participant is allowed to contribute to the 401(k) Plan from 1% to 75% of his or her compensation, subject to limits imposed by applicable law. Active participants vest in company match contributions at 33% per year for each plan year they are employed. For 2022 and 2021, we contributed a 67% match on the first 6% of annual compensation for participants with an annual base salary of less than $100,000 and we contributed a 50% match on the first 6% of annual compensation for participants with an annual base salary of $100,000 or more, or who are commissioned employees (up to $6,000 of compensation). For 2023, we contributed 67% on the first 6% of eligible compensation contributed to the plan (up to $6,000) for all employees regardless of base compensation or commissioned status. In connection with the 401(k) Plan, we charged to expense $107.8 million, $91.1 million and $72.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. Participants are entitled to invest up to 25% of their 401(k) account balance in shares of our common stock. As of December 31, 2023, approximately 1.0 million shares of our common stock were held as investments by participants in our 401(k) Plan. Pension Plans We have two primary non-U.S. contributory defined benefit pension plans (major plans), both based in the U.K. Our subsidiaries maintain these plans to provide retirement benefits to existing and former employees participating in these plans. With respect to these plans, our historical policy has been to contribute annually to the plans, an amount to fund pension liabilities as actuarially determined and as required by applicable laws and regulations. Our contributions to these plans are invested by the plan trustee and, if these investments do not perform well in the future, we may be required to provide additional contributions to cover any pension underfunding. Effective July 1, 2007, we reached agreements with the active members of these plans to freeze future pension plan benefits. In return, the active members became eligible to enroll in a defined contribution plan. For these plans, as of December 31, 2023 and 2022, the fair values of pension plan assets were $243.2 million and $221.1 million, respectively, and the fair values of projected benefit obligations were $267.4 million and $247.1 million, respectively. As a result, these plans were underfunded by approximately $24.3 million and $26.0 million at December 31, 2023 and 2022, respectively. Items not yet recognized as a component of net periodic pension cost (benefit) for the major plans were $131.8 million and $127.7 million as of December 31, 2023 and 2022, respectively, and were included in accumulated other comprehensive loss in the accompanying consolidated balance sheets. During 2023, on the major plans, the projected plan obligations included losses of $7.3 million due to plan experience. During 2022, on the major plans, the projected plan obligations included gains of $159.3 million as a result of changes in actuarial assumptions which was partially offset by $19.1 million in losses due to plan experience. As of December 31, 2023, for all plans where total projected benefit obligations exceed plan assets, projected benefit obligations and the fair value of plan assets were $374.4 million and $295.5 million as of December 31, 2023, respectively, and $339.9 million and $270.3 million as of December 31, 2022, respectively. As of December 31, 2023, for all plans where total accumulated benefit obligations exceed plan assets, accumulated benefit obligations and the fair value of plan assets were $361.4 million and $295.5 million as of December 31, 2023, respectively, and $329.5 million and $270.3 million as of December 31, 2022, respectively. Net periodic pension cost for all plans was $19.8 million for the year ended December 31, 2023. Net periodic pension benefit for all plans was $3.4 million and $8.9 million for the years ended December 31, 2022 and 2021, respectively. The following table provides amounts recognized related to all of our defined benefit pension plans within the following captions on our consolidated balance sheets (dollars in millions): December 31, 2023 2022 Other assets, net $ 41 $ 56 Other liabilities 85 80 The following table presents estimated future benefit payments as of December 31, 2023. We will fund these obligations from the assets held by these plans. If the assets these plans hold are not sufficient to fund these payments, the company will fund the remaining obligations (dollars in millions): 2024 2025 2026 2027 2028 Thereafter Estimated future benefit payments for defined benefit plans $ 49 $ 47 $ 48 $ 49 $ 51 $ 274 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before provision for income taxes consisted of the following (dollars in millions): Year Ended December 31, 2023 2022 2021 Domestic $ 665 $ 1,275 $ 1,684 Foreign 612 383 726 Total $ 1,277 $ 1,658 $ 2,410 Our tax provision (benefit) consisted of the following (dollars in millions): Year Ended December 31, 2023 2022 2021 Current provision: Federal $ 98 $ 338 $ 275 State 31 99 115 Foreign 242 208 239 Total current provision 371 645 629 Deferred provision: Federal (4) (249) 35 State 4 (56) (5) Foreign (121) (106) (91) Total deferred provision (121) (411) (61) Total provision for income taxes $ 250 $ 234 $ 568 The following is a reconciliation stated as a percentage of pre-tax income of the U.S. statutory federal income tax rate to our effective tax rate: Year Ended December 31, 2023 2022 2021 Federal statutory tax rate 21 % 21 % 21 % Foreign rate differential (1) — — State taxes, net of federal benefit 2 3 4 Nontaxable or nondeductible items 3 2 — Reserves for uncertain tax positions — 1 1 Tax credits (5) (2) (1) Outside basis differences recognized as a result of a legal entity restructuring — (10) — Other (1) (1) (1) Effective tax rate 19 % 14 % 24 % In 2022, we recognized a net tax benefit of approximately $165.8 million attributable to outside basis differences recognized as a result of a legal entity restructuring. The recognition of the outside tax basis differences generated a capital loss that offset capital gains generated during 2022. The remaining capital loss will be carried back and then forward to offset future capital gains. Based on our strong history of capital gains in the prior three years and the nature of our business, we expect to generate sufficient capital gains in the five year carry forward period and therefore concluded that it is more likely than not that we will realize the full tax benefit from the capital loss carried forward. Accordingly, we have not provided any valuation allowance against the deferred tax asset for the capital loss carried forward. Cumulative tax effects of temporary differences are shown below (dollars in millions): December 31, 2023 2022 Assets: Tax losses and tax credits $ 506 $ 369 Operating lease liabilities 343 317 Bonus and deferred compensation 334 372 Bad debt and other reserves 117 103 Pension obligation — 1 All other 188 64 Deferred tax assets, before valuation allowance $ 1,488 $ 1,226 Less: Valuation allowance (357) (255) Deferred tax assets $ 1,131 $ 971 Liabilities: Property and equipment (55) (21) Unconsolidated affiliates and partnerships (115) (93) Capitalized costs and intangibles (531) (562) Operating lease assets (286) (273) All other (38) (38) Deferred tax liabilities $ (1,025) $ (987) Net deferred tax assets/(liabilities) $ 106 $ (16) As of December 31, 2023, there were deferred tax assets before valuation allowances of approximately $471.9 million related to U.S. federal, state, and foreign net operating losses (NOLs). The majority of the NOLs are carried forward indefinitely and primarily related to the foreign jurisdictions. In certain foreign jurisdictions NOLs expire each year beginning in 2023. The utilization of NOLs may be subject to certain limitations under U.S. federal, state and foreign laws. As of December 31, 2023, we had a U.S. federal and state capital loss carryforward, net of reserves for uncertain tax position, of approximately $24.1 million which will expire after 2027, and $9.8 million foreign tax credits, which will expire after 2033. We have recorded a valuation allowance for deferred tax assets where we believe that it is more likely than not that the tax attributes will not be utilized. We determined as of December 31, 2023, $356.5 million of deferred tax assets do not satisfy the realization criteria set forth in Topic 740. Accordingly, a valuation allowance has been recorded for this amount. If released, the entire amount would result in a benefit to continuing operations. During the year ended December 31, 2023, our valuation allowance increased by approximately $101.8 million. The increase was attributed to a build in valuation allowance of $96.7 million due to current year activities, reversal of the beginning of year valuation allowance of $6.0 million as certain foreign subsidiaries expect to utilize deferred tax assets before expiration as a result of current and forecasted earnings within the applicable jurisdiction, and an increase of $11.1 million due to foreign currency translation and tax rate changes. We believe it is more likely than not that future operations will generate sufficient taxable income to realize the benefit of our deferred tax assets recorded as of December 31, 2023, net of valuation allowance. At December 31, 2023, we have undistributed earnings of certain foreign subsidiaries of approximately $3.8 billion for which we have indefinitely reinvested and not recognized deferred taxes. Estimating the amount of the unrecognized deferred tax is not practicable due to the complexity and variety of assumptions necessary to estimate the tax. As of December 31, 2023, we have recorded $18.6 million of deferred tax liability relating to book over tax basis in Turner & Townsend undistributed earnings. The total amount of gross unrecognized tax benefits was approximately $413.5 million and $391.4 million as of December 31, 2023 and 2022, respectively. The total amount of unrecognized tax benefits that would affect our effective tax rate, if recognized, is $283.9 million as of December 31, 2023. The increase of $22.1 million resulted from accrual of gross unrecognized tax benefits of $28.8 million and a release of $6.7 million of gross unrecognized tax benefits primarily related to the expiration of statute of limitations in various tax jurisdictions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in millions): Year Ended December 31, 2023 2022 Beginning balance, unrecognized tax benefits $ (391) $ (192) Gross increases - tax positions in prior period (12) (42) Gross decreases - tax positions in prior period 1 1 Gross increases - current-period tax positions (18) (167) Decreases relating to settlements — 1 Reductions as a result of lapse of statute of limitations 7 2 Foreign exchange movement — 6 Ending balance, unrecognized tax benefits $ (413) $ (391) Our continuing practice is to recognize accrued interest and/or penalties related to income tax matters within income tax expense. During the years ended December 31, 2023 and 2022, we accrued/(reversed) an additional $3.5 million and $(0.5) million, respectively, in interest and penalties associated with uncertain tax positions. As of December 31, 2023, we have recognized a liability for interest and penalties of $6.8 million. We believe the amount of gross unrecognized tax benefits that will be settled during the next twelve months due to filing amended returns and settling ongoing exams will not be significant. We conduct business globally and file income tax returns in the U.S. federal jurisdiction and in multiple state, local and foreign tax jurisdictions. Our U.S. federal income tax returns for years 2016 through 2019 are currently under audit by the Internal Revenue Service. We are under audit by various states and localities including California, Massachusetts, New York, New York City, and Texas. We are also under audit by various foreign tax jurisdictions including Canada, France, Germany, and Spain. With limited exception, our significant U.S. state and foreign tax jurisdictions are no longer subject to audit by the various tax authorities for tax years prior to 2013 and 2017, respectively. On February 13, 2024, we were notified by the Internal Revenue Service that they have completed our audit for tax years 2016 through 2019. We expect the closure of this audit to have an immaterial impact to our financial statements. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Our board of directors is authorized, subject to any limitations imposed by law, without the approval of our stockholders, to issue a total of 25,000,000 shares of preferred stock, in one or more series, with each such series having rights and preferences including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, as our board of directors may determine. As of December 31, 2023 and 2022, no shares of preferred stock have been issued. Our board of directors is authorized to issue up to 525,000,000 shares of Class A common stock, $0.01 par value per share (common stock), of which 304,889,140 shares and 311,014,160 shares were issued and outstanding as of December 31, 2023 and 2022, respectively. Stock Repurchase Program On November 19, 2021, our board of directors authorized a program for the repurchase of up to $2.0 billion of our Class A common stock over five years (the 2021 program). On August 18, 2022, our board of directors authorized an additional $2.0 billion, bringing the total authorized repurchase amount under this program to a total of $4.0 billion. During the year ended December 31, 2023, we repurchased 7,867,348 shares of our common stock with an average price of $82.59 per share using cash on hand for an aggregate of $649.8 million under the 2021 program. During the years ended December 31, 2022 and 2021, respectively, we repurchased 22,890,606 shares and 3,954,369 shares of our common stock using cash on hand for an aggregate of $1.9 billion and $372.9 million. Our stock repurchase programs do not obligate us to acquire any specific number of shares. Under these programs, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934. Our stock repurchases have been funded with cash on hand and we intend to continue funding future repurchases with existing cash. We may utilize our stock repurchase programs to continue offsetting the impact of our stock-based compensation program and on a more opportunistic basis if we believe our stock presents a compelling investment compared to other discretionary uses. The timing of any future repurchases and the actual amounts repurchased will depend on a variety of factors, including the market price of our common stock, general market and economic conditions and other factors. As of December 31, 2023, we had approximately $1.5 billion of capacity remaining under the 2021 program. |
Income Per Share Information
Income Per Share Information | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Income Per Share Information | Income Per Share Information The calculations of basic and diluted income per share attributable to CBRE Group, Inc. stockholders are as follows (dollars in millions, except share and per share data): Year Ended December 31, 2023 2022 2021 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 986 $ 1,407 $ 1,837 Weighted average shares outstanding for basic income per share 308,430,080 322,813,345 335,232,840 Basic income per share attributable to CBRE Group, Inc. stockholders $ 3.20 $ 4.36 $ 5.48 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 986 $ 1,407 $ 1,837 Weighted average shares outstanding for basic income per share 308,430,080 322,813,345 335,232,840 Dilutive effect of contingently issuable shares 4,120,862 4,882,770 4,484,561 Weighted average shares outstanding for diluted income per share 312,550,942 327,696,115 339,717,401 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 3.15 $ 4.29 $ 5.41 For the years ended December 31, 2023, 2022 and 2021, 338,711, 1,312,197 and 186,241, respectively, of contingently issuable shares were excluded from the computation of diluted income per share because their inclusion would have had an anti-dilutive effect. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We account for revenue with customers in accordance with Topic 606. Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those services. Disaggregated Revenue The following tables represent a disaggregation of revenue from contracts with customers by type of service and/or segment (dollars in millions): Year Ended December 31, 2023 Advisory Global Real Estate Corporate, Consolidated Topic 606 Revenue: Facilities management $ — $ 15,205 $ — $ — $ 15,205 Project management — 7,310 — — 7,310 Advisory leasing 3,503 — — 3 3,506 Advisory sales 1,611 — — — 1,611 Property management 1,928 — — (20) 1,908 Valuation 716 — — — 716 Commercial mortgage origination (1) 138 — — — 138 Loan servicing (2) 73 — — — 73 Investment management — — 592 — 592 Development services — — 345 — 345 Topic 606 Revenue 7,969 22,515 937 (17) 31,404 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 286 — — — 286 Loan servicing 244 — — — 244 Development services (3) — — 15 — 15 Total Out of Scope of Topic 606 Revenue 530 — 15 — 545 Total Revenue $ 8,499 $ 22,515 $ 952 $ (17) $ 31,949 Year Ended December 31, 2022 Advisory Global Real Estate Corporate, Consolidated Topic 606 Revenue: Facilities management $ — $ 15,201 $ — $ — $ 15,201 Project management — 4,650 — — 4,650 Advisory leasing 3,872 — — 3 3,875 Advisory sales 2,523 — — — 2,523 Property management 1,849 — — (19) 1,830 Valuation 765 — — — 765 Commercial mortgage origination (1) 274 — — — 274 Loan servicing (2) 57 — — — 57 Investment management — — 595 — 595 Development services — — 404 — 404 Topic 606 Revenue 9,340 19,851 999 (16) 30,174 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 289 — — — 289 Loan servicing 254 — — — 254 Development services (3) — — 111 — 111 Total Out of Scope of Topic 606 Revenue 543 — 111 — 654 Total Revenue $ 9,883 $ 19,851 $ 1,110 $ (16) $ 30,828 Year Ended December 31, 2021 Advisory Global Real Estate Corporate, Consolidated Topic 606 Revenue: Facilities management $ — $ 14,167 $ — $ — $ 14,167 Project management — 2,932 — — 2,932 Advisory leasing 3,306 — — 2 3,308 Advisory sales 2,790 — — — 2,790 Property management 1,739 — — (22) 1,717 Valuation 733 — — — 733 Commercial mortgage origination (1) 314 — — — 314 Loan servicing (2) 43 — — — 43 Investment management — — 556 — 556 Development services — — 390 — 390 Topic 606 Revenue 8,925 17,099 946 (20) 26,950 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 388 — — — 388 Loan servicing 262 — — — 262 Development services (3) — — 146 — 146 Total Out of Scope of Topic 606 Revenue 650 — 146 — 796 Total Revenue $ 9,575 $ 17,099 $ 1,092 $ (20) $ 27,746 ________________________________________________________________________________________________________________________________________ (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Out of scope revenue for development services represents selling profit from transfers of sales-type leases in the scope of Topic 842. Contract Assets and Liabilities We had contract assets totaling $517.4 million ($442.9 million of which was current) and $529.1 million ($391.6 million of which was current) as of December 31, 2023 and 2022, respectively. During the year ended December 31, 2023, our contract assets decreased by $11.7 million, within our Real Estate Investments and Advisory Services segments. We had contract liabilities totaling $304.3 million ($297.6 million of which was current) and $284.3 million ($276.3 million of which was current) as of December 31, 2023 and 2022, respectively. During the year ended December 31, 2023, we recognized revenue of $232.7 million that was included in the contract liability balance at December 31, 2022. Contract Costs We capitalized $39.8 million, $29.9 million and $84.9 million, respectively, of transition costs during the years ended December 31, 2023, 2022 and 2021. We recorded amortization of transition costs of $36.7 million, $42.1 million and $40.3 million, respectively, during the years ended December 31, 2023, 2022 and 2021. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments | Segments We organize our operations around, and publicly report our financial results on, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions and (3) Real Estate Investments. In addition, we also have a “Corporate, other and eliminations” segment. Our Corporate segment primarily consists of corporate headquarters costs for executive officers and certain other central functions. We track our strategic non-core non-controlling equity investments in “other” which is considered an operating segment and reported together with Corporate as it does not meet the aggregation criteria for presentation as a separate reportable segment. These activities are not allocated to the other business segments. Corporate and other also includes eliminations related to inter-segment revenue. Segment operating profit (SOP) is the measure reported to the chief operating decision marker (CODM) for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of amount attributable to non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, efficiency and cost-reduction initiatives, integration and other costs related to acquisitions, provision associated with Telford’s fire safety remediation efforts, and a one-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired. This metric excludes the impact of corporate overhead as these costs are reported under Corporate and other. Summarized financial information by segment is as follows (dollars in millions): Year Ended December 31, 2023 2022 2021 Revenue Advisory Services $ 8,499 $ 9,883 $ 9,575 Global Workplace Solutions 22,515 19,851 17,099 Real Estate Investments 952 1,110 1,092 Corporate, other and eliminations (1) (17) (16) (20) Total revenue $ 31,949 $ 30,828 $ 27,746 Depreciation and Amortization Advisory Services $ 289 $ 311 $ 311 Global Workplace Solutions (2) 262 253 159 Real Estate Investments 15 16 27 Corporate, other and eliminations 56 33 29 Total depreciation and amortization $ 622 $ 613 $ 526 Equity Income (Loss) from Unconsolidated Subsidiaries Advisory Services $ 4 $ 15 $ 25 Global Workplace Solutions 1 1 2 Real Estate Investments 216 380 555 Corporate, other and eliminations 27 (167) 37 Total equity income from unconsolidated subsidiaries $ 248 $ 229 $ 619 Segment Operating Profit Advisory Services $ 1,364 $ 1,910 $ 2,063 Global Workplace Solutions 1,006 899 708 Real Estate Investments 239 518 520 Total reportable segment operating profit $ 2,609 $ 3,327 $ 3,291 ________________________________________________________________________________________________________________________________________ (1) Eliminations represent revenue from transactions with other operating segments. See Note 18. (2) Excludes $46.4 million, $52.7 million and $52.2 million for the years ended December 31, 2023, 2022 and 2021, respectively, of amortization on vehicle finance leases utilized in client outsourcing arrangements and amortization of transition costs recorded in Cost of Revenue line item in the accompanying consolidated statement of operations. Reconciliation of total reportable segment operating profit to net income is as follows (dollars in millions): Year Ended December 31, 2023 2022 2021 Net income attributable to CBRE Group, Inc. $ 986 $ 1,407 $ 1,837 Net income attributable to non-controlling interests 41 17 5 Net income 1,027 1,424 1,842 Adjustments to increase (decrease) net income: Depreciation and amortization 622 613 526 Asset impairments — 59 — Interest expense, net of interest income 149 69 50 Write-off of financing costs on extinguished debt — 2 — Provision for income taxes 250 234 568 Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue (7) (4) 50 Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period — (5) (6) Costs incurred related to legal entity restructuring 13 13 — Integration and other costs related to acquisitions 62 40 44 Costs associated with efficiency and cost-reduction initiatives 159 118 — Provision associated with Telford’s fire safety remediation efforts (1) — 186 — One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired (34) — — Corporate and other loss, including eliminations 368 578 217 Total reportable segment operating profit $ 2,609 $ 3,327 $ 3,291 ________________________________________________________________________________________________________________________________________ (1) See Note 22 for additional information. 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 millions): Year Ended December 31, 2023 2022 2021 Revenue United States $ 17,458 $ 17,464 $ 15,700 United Kingdom 4,393 4,084 3,618 All other countries 10,098 9,280 8,428 Total revenue $ 31,949 $ 30,828 $ 27,746 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The accompanying consolidated balance sheets include loans to related parties, primarily employees other than our executive officers, of $732.5 million and $600.1 million as of December 31, 2023 and 2022, respectively. The majority of these loans represent sign-on and retention bonuses issued or assumed in connection with acquisitions and prepaid commissions as well as prepaid retention and recruitment awards issued to employees. These loans are at varying principal amounts, bear interest at rates up to 7.00% per annum and mature on various dates through 2033. See Note 10 for additional details on related party revenue and receivables disclosure for the REI segment. |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities During the third quarter of 2022, we launched certain cost and operational efficiency initiatives to further improve the company’s resiliency in an economic downturn while enabling continued operating platform investments that support future growth. The efficiency initiatives include management and workforce structure simplification, occupancy footprint rationalization and certain third-party spending reductions. Cash-based charges are primarily related to employee separation benefits, lease and certain contract exit costs, and professional fees. Non-cash charges are primarily associated with acceleration of depreciation and write-down of lease and related assets, partially offset by release of lease liability, as part of our lease termination activities. These initiatives were largely executed as of March 31, 2023. The following tables present the detail of expenses incurred by segment (dollars in millions): Year Ended December 31, 2023 Advisory Global Real Estate Corporate Consolidated Employee separation benefits $ 26 $ 32 $ 13 $ 11 $ 82 Lease exit costs 39 1 4 1 45 Professional fees and other 7 19 4 2 32 Subtotal 72 52 21 14 159 Depreciation expense 6 — 3 — 9 Total $ 78 $ 52 $ 24 $ 14 $ 168 Year Ended December 31, 2022 Advisory Global Real Estate Corporate Consolidated Employee separation benefits $ 33 $ 20 $ 9 $ 19 $ 81 Lease exit costs 10 3 — — 13 Professional fees and other 3 5 3 13 24 Subtotal 46 28 12 32 118 Depreciation expense 5 3 — — 8 Total $ 51 $ 31 $ 12 $ 32 $ 126 The following table shows ending liability balances associated with major cash-based charges (dollars in millions): Employee separation benefits Professional fees Balance at January 1, 2022 $ — $ — Expense incurred 82 23 Payments made (45) (13) Balance at December 31, 2022 37 10 Expense incurred 82 32 Payments made (106) (42) Balance at December 31, 2023 $ 13 $ — Ending balances related to employee separation benefits were included in “Compensation and employee benefits payable” and the balances related to professional fees and other were included in “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets. Of the total charges incurred, net of depreciation expense, $17.4 million and $33.4 million were included within the “Cost of revenue” line item, and $133.0 million and $84.1 million were included in the “Operating, administrative and other” line item in the accompanying consolidated statement of operations for the years ended December 31, 2023 and 2022, respectively. We did not incur significant restructuring charges during the year ended December 31, 2021. |
Telford Fire Safety Remediation
Telford Fire Safety Remediation | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Telford Fire Safety Remediation | Telford Fire Safety Remediation On April 28, 2022, Telford Homes signed the U.K. government’s non-binding Fire Safety Pledge (the Pledge) to comply with the Building Safety Act of 2022 (BSA). The BSA introduced new laws related to building safety and the remediation of historic building safety defects, effectively requiring developers to remediate certain buildings with critical fire safety issues. The BSA also retrospectively amended the Defective Premises Act of 1972 (DPA) to allow claims to be made within a 30-year limitation period for dwellings completed before June 28, 2022. The U.K. government had previously established a Building Safety Fund (BSF) and an Aluminum Composite Material (ACM) fund, whereby applicants to the fund would be funded by the government to remediate certain fire safety defects if certain criteria were met. On March 16, 2023, Telford Homes entered into a legally binding agreement with the U.K. government, under which Telford Homes will (1) take responsibility for performing or funding remediation works relating to certain life-critical fire-safety issues on all Telford Homes-constructed buildings of 11 meters in height or greater in England constructed in the last 30 years (in-scope buildings) and (2) withdraw Telford Homes-developed buildings from the government-sponsored Building Safety Fund (BSF) and Aluminum Composite Material (ACM) Funds or reimburse the government funds for the cost of remediation of in-scope buildings. We believe there is an obligation attributable to past events, including as a result of retrospective changes in building fire-safety regulations, under the Pledge and the legally binding agreement. During the year ended December 31, 2023, management substantially finalized the determination of in-scope buildings that require some level of remediation with assistance from internal and external experts. We believe approximately 79 buildings are in-scope as compared to 84 buildings previously deemed to be at risk. The accompanying consolidated balance sheets include an estimated liability current liability To the extent management did not have comprehensive cost assessments for certain buildings, the liability was estimated using the best available data, including (i) industry data, (ii) certain cost assumptions applied to scope of remediation work on specific building as identified by fire safety assessments (also known as PAS assessments, which include fire risk appraisal of external wall construction), and (iii) bids from subcontractors. We applied an inflation factor to account for the extended period of time during which the remediation work will be performed, an estimate of direct costs associated with an internal team dedicated to this remediation, and a contingency to account for unknown remediation costs. The estimated remediation costs for in-scope buildings are subjective, highly complex and dependent on a number of variables outside of Telford Homes’ control. These include, but are not limited to, individual remediation requirements for each building, the time required for the remediation to be completed, cost of construction or remediation materials, availability of construction materials, potential discoveries made during remediation that could necessitate incremental work, investigation costs, availability of qualified fire safety engineers, potential business disruption costs, potential changes to or new regulations and regulatory approval. We will continue to assess new information as it becomes available during the remediation process and adjust our estimated liability accordingly. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | CBRE GROUP, INC. SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS (Dollars in millions) Allowance for Doubtful Accounts Balance, December 31, 2020 $ 95 Additions: Charges to expense 18 Deductions: Write-offs, payments and other 16 Balance, December 31, 2021 97 Additions: Charges to expense 17 Deductions: Write-offs, payments and other 22 Balance, December 31, 2022 92 Additions: Charges to expense 34 Deductions: Write-offs, payments and other 24 Balance, December 31, 2023 $ 102 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 5, 2024, we announced a definitive agreement to acquire J&J Worldwide Services, a leading provider of engineering services, base support operations and facilities maintenance for the U.S. federal government, from Arlington Capital Partners, a private investment firm. The consideration consists of (i) an initial purchase price of $800 million, payable in cash at closing of the acquisition, plus (ii) a potential earn-out of up to $250 million, payable in cash in 2027 contingent on the acquired business meeting certain performance thresholds. Closing of the acquisition is expected to occur in Q1 2024, subject to obtaining applicable regulatory clearances and the satisfaction of other customary closing conditions. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income attributable to CBRE Group, Inc. stockholders | $ 986 | $ 1,407 | $ 1,837 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries, which are comprised of variable interest entities in which we are the primary beneficiary and voting interest entities, in which we determined we have a controlling financial interest, under the “ Consolidations ” topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) (Topic 810). The equity attributable to non-controlling interests in subsidiaries is shown separately in the accompanying consolidated balance sheets. All significant intercompany accounts and transactions have been eliminated in consolidation. Variable Interest Entities (VIEs) We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. Our determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in the VIE. Determining which reporting entity, if any, has a controlling financial interest in a VIE is primarily a qualitative approach focused on identifying which reporting entity has both: (i) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to sell or liquidate the entity. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion continually. We consolidate any VIE of which we are the primary beneficiary and disclose significant VIEs of which we are not the primary beneficiary, if any, as well as disclose our maximum exposure to loss related to VIEs that are not consolidated (see Note 6). Voting Interest Entities (VOEs) For VOEs, we consolidate the entity if we have a controlling financial interest. We have a controlling financial interest in a VOE if: (i) for legal entities other than limited partnerships, we own a majority voting interest in the VOE or, for limited partnerships and similar entities, we own a majority of the entity’s kick-out rights through voting limited partnership interests; and (ii) non-controlling shareholders or partners do not hold substantive participating rights and no other conditions exist that would indicate that we do not control the entity. Debt and Equity Securities and Other Investments Debt securities are classified as held to maturity when we have the positive intent and ability to hold the securities to maturity. Debt securities not classified as held to maturity are classified as available for sale. Available for sale debt securities are carried at their fair value and any difference between cost and fair value is recorded as an unrealized gain or loss, net of income taxes, and is reported as accumulated other comprehensive income (loss) in the consolidated statements of equity. Premiums and discounts are recognized in interest using the effective interest method. Realized gains and losses and declines in value resulting from credit losses on available for sale debt securities have not been significant. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available for sale are included in interest income. Our investments in unconsolidated subsidiaries in which we have the ability to exercise significant influence over operating and financial policies, but do not control, or entities which are VIEs in which we are not the primary beneficiary are accounted for under the equity method in accordance with the “ Instruments - Equity Method and Joint Ventures” topic of the FASB ASC (Topic 323). We eliminate transactions with such equity method subsidiaries to the extent of our ownership in such subsidiaries. Accordingly, our share of the earnings from these equity-method basis companies, generally recognized on a lag of three months or less, is included in consolidated net income. We have elected to account for certain eligible investments and related interests at fair value in accordance with the “Financial Instruments” topic of the FASB ASC (Topic 825). For a portion of our investments in unconsolidated subsidiaries reported at fair value, we estimate fair value using the net asset value (NAV) per share (or its equivalent) our investees provide. These investments are considered investment companies, or are the equivalent of investment companies, as they carry all investments at fair value, with unrealized gains and losses resulting from changes in fair value reflected in earnings. Accordingly, we effectively carry our investments at an amount that is equivalent to our proportionate share of the net assets of each investment that would be allocated to us if each investment was liquidated at the net asset value as of the measurement date. Equity investments that do not result in consolidation and are not accounted for under the equity method (primarily marketable equity securities) are measured at fair value with changes therein reflected in net income. Equity instruments that do not have readily determinable fair values and do not qualify for using the net asset value per share practical expedient in the “Fair Value Measurements” topic of the FASB ASC (Topic 820) are measured at cost, less any impairment, and adjusted for subsequent observable transactions for the same or similar investments of the same issuer. Impairment Evaluation Impairment losses on investments, other than available for sale debt securities and investments otherwise measured at fair value, are recognized upon evidence of other-than-temporary losses of value. When testing for impairment on investments that are not actively traded on a public market, we generally use a discounted cash flow approach to estimate the fair value of our investments and/or look to comparable activities in the marketplace. Management’s judgment is required in developing the assumptions for the discounted cash flow approach. These assumptions include net asset values, internal rates of return, discount and capitalization rates, interest rates and financing terms, rental rates, timing of leasing activity, estimates of lease terms and related concessions, etc. When determining if impairment is other-than-temporary, we also look to the length of time and the extent to which fair value has been less than cost as well as the financial condition and near-term prospects of each investment. Based on our review, we did not record any significant other-than-temporary impairment losses during the years ended December 31, 2023, 2022 and 2021. |
Use of Estimates | Use of Estimates Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP), which require management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts reported in our consolidated financial statements and accompanying notes. 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, other post-employment benefits, and loss contingencies, 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. Actual results may differ from these estimates and assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents generally consist of cash and highly liquid investments with an original maturity of three months or less. We also manage certain cash and cash equivalents as an agent for our investment and property and facilities management clients. These amounts are not included in the accompanying consolidated balance sheets (see Fiduciary Funds discussion below). |
Restricted Cash | Restricted Cash Included in the accompanying consolidated balance sheets as of December 31, 2023 and 2022 is restricted cash of $106.0 million and $86.6 million, respectively. The balances primarily include restricted cash set aside to cover funding obligations as required by contracts executed by us in the ordinary course of business. |
Fiduciary Funds | Fiduciary Funds The accompanying consolidated balance sheets do not include the net assets of escrow, agency and fiduciary funds, which are held by us on behalf of clients. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to credit risk consist principally of trade receivables and interest-bearing investments. Users of real estate services account for a substantial portion of trade receivables and collateral is generally not required. The risk associated with this concentration is limited due to the large number of users and their geographic dispersion. We place substantially all our interest-bearing investments with several major financial institutions to limit the amount of credit exposure with any one financial institution. |
Property and Equipment | Property and Equipment Property and equipment, which includes leasehold improvements, is stated at cost, net of accumulated depreciation and impairment. Depreciation and amortization of property and equipment is computed primarily using the straight-line method over estimated useful lives ranging up to 10 years. Leasehold improvements are amortized over the term of their associated leases, excluding options to renew unless we are reasonably certain that we will exercise the option to renew. We capitalize expenditures that significantly increase the life of our assets and expense the costs of maintenance and repairs. We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If this review indicates that such assets are considered impaired, the impairment is recognized in the period the changes occur and represents the amount by which the carrying value exceeds the fair value of the asset or asset group. Certain costs related to the development or purchase of internal-use software are capitalized. Internal-use software costs incurred in the preliminary project stage are expensed as incurred. Significant direct consulting costs and certain payroll and related costs, which are incurred during the development stage of a project are generally capitalized and amortized over a three-year period (except for enterprise software development platforms, which range from three |
Real Estate | Real Estate Classification and Impairment Evaluation We classify real estate in accordance with the criteria of the “ Property, Plant and Equipment ” topic of the FASB ASC (Topic 360) as follows: (i) real estate held for sale, which includes completed assets or land for sale in its present condition that meet all of Topic 360’s “held for sale” criteria; (ii) real estate under development (current), which includes real estate that we are in the process of developing that is expected to be completed and disposed of within one year of the balance sheet date; (iii) real estate under development (non-current), which includes real estate that we are in the process of developing that is expected to be completed and disposed of more than one year from the balance sheet date; or (iv) real estate held for investment, which consists of land on which development activities have not yet commenced and completed assets or land held for disposition that do not meet the “held for sale” criteria. Any asset reclassified from real estate held for sale to real estate held for investment is recorded individually at the lower of its fair value at the date of the reclassification or its carrying amount before it was classified as “held for sale,” adjusted (in the case of real estate held for investment) for any depreciation that would have been recognized had the asset been continuously classified as real estate held for investment. Real estate held for sale is recorded at the lower of cost or fair value less cost to sell. If an asset’s fair value less cost to sell, based on discounted future cash flows, management estimates or market comparisons, is less than its carrying amount, an allowance is recorded against the asset. Real estate under development and real estate held for investment are carried at cost less depreciation and impairment, as applicable. Buildings and improvements included in real estate held for investment are depreciated using the straight-line method over estimated useful lives, generally up to 39 years. Tenant improvements included in real estate held for investment are amortized using the straight-line method over the shorter of their estimated useful lives or terms of the respective leases. Land improvements included in real estate held for investment are depreciated over their estimated useful lives, up to 15 years. Real estate under development and real estate held for investment are evaluated for impairment and losses are recorded when undiscounted cash flows estimated to be generated by an asset are less than the asset’s carrying amount. The amount of the impairment loss, if any, is calculated as the excess of the asset’s carrying value over its fair value, which is determined using a discounted cash flow analysis, management estimates or market comparisons. A summary of our real estate assets is as follows (dollars in millions): December 31, 2023 2022 Real estate under development, current (included in other current assets) $ — $ 193 Real estate and other assets held for sale (included in other current assets) 42 97 Real estate under development 300 172 Real estate held for investment (included in other assets, net) 179 45 Total real estate $ 521 $ 507 Cost Capitalization and Allocation When acquiring, developing, and constructing real estate assets, we capitalize recoverable costs. Capitalization begins when the activities related to development have begun and ceases when activities are substantially complete and the asset is available for occupancy. Recoverable costs capitalized include pursuit costs, or pre-acquisition/pre-construction costs, taxes and insurance, interest, development and construction costs and costs of incidental operations. We do not capitalize any internal costs when acquiring, developing, and constructing real estate assets. We expense transaction costs for acquisitions that qualify as a business in accordance with the “ Business Combinations ” topic of the FASB ASC (Topic 805). Pursuit costs capitalized in connection with a potential development project that we have determined not to pursue are written off in the period that determination is made. At times, we purchase bulk land that we intend to sell or develop in phases. The land basis allocated to each phase is based on the relative estimated fair value of the phases before construction except for newly acquired held for sale phases which are measured at their fair value less cost to sell at the acquisition date. We allocate construction costs incurred relating to more than one phase between the various phases; if the costs cannot be specifically attributed to a certain phase or the improvements benefit more than one phase, we allocate the costs between the phases based on their relative estimated sales values, where practicable, or other value methods as appropriate under the circumstances. Relative allocations of the costs are revised as the sales value estimates are revised. When acquiring real estate with existing buildings, we allocate the purchase price between land, land improvements, building and intangibles related to in-place leases, if any, based on their relative fair values. The fair values of acquired land and buildings are determined based on an estimated discounted future cash flow model with lease-up assumptions as if the building was vacant upon acquisition. The fair value of in-place leases includes the value of lease intangibles for above or below-market rents and tenant origination costs, determined on a lease-by-lease basis. The capitalized values for both lease intangibles and tenant origination costs are amortized over the term of the underlying leases. Amortization related to lease intangibles is recorded as either an increase to or a reduction of rental income and amortization for tenant origination costs is recorded to amortization expense. Disposition of Real Estate We account for gains and losses on the sale of real estate and other nonfinancial assets or in substance n onfinancial assets to noncustomers that are not an output of our ordinary activities and are not a business in accordance with the “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets” topic of the FASB ASC (Topic 610-20). Where we do not have a controlling financial interest in the entity that holds the transferred assets after the transaction, we derecognize the assets or in substance nonfinancial assets and recognize a gain or loss when control of the underlying assets transfers to the counterparty. We may also dispose of real estate through the transfer of a long-term leasehold representing a major part of the remaining economic life of the property. We account for these transfers as sales-type leases in accordance with the “ Lease s” topic of the FASB ASC (Topic 842) by derecognizing the carrying amount of the underlying asset, recognizing any net investment in the lease and recognizing selling profit or loss in net income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Our acquisitions of businesses require the application of purchase accounting, which results in tangible and identifiable intangible assets and liabilities of the acquired entity being recorded at fair value. The difference between the purchase price and the fair value of net assets acquired is recorded as goodwill. Deferred consideration arrangements granted in connection with a business combination are evaluated to determine whether all or a portion is, in substance, additional purchase price or compensation for services. Additional purchase price is added to the fair value of consideration transferred in the business combination and compensation is included in operating expenses in the period it is incurred. We are required to test goodwill and other intangible assets deemed to have indefinite useful lives for impairment at least annually, or more often if circumstances or events indicate a change in the impairment status, in accordance with FASB ASC (Topic 350), “ Intangibles – Goodwill and Other. |
Business Combinations | Business Combinations We estimate the fair value of identifiable assets, liabilities and any non-controlling interests acquired in a business combination and recognize goodwill as the excess of the purchase price over the recorded value of the acquired assets and liabilities in accordance with FASB ASC (Topic 805). When estimating the fair value of acquired assets, we utilize various valuation models which may require significant judgment, particularly where observable market values do not exist. Inputs requiring significant judgment may include discount rates, growth rates, cost of capital, royalty rates, tax rates, market values, depreciated replacement costs, selling prices less costs to dispose, and remaining useful lives, among others. Reasonable differences in these inputs could have a significant impact on the estimated value of acquired assets, the resulting value of goodwill, subsequent depreciation and amortization expense, and the results of future asset impairment evaluations. |
Leases | Leases We are the lessee in contracts for our office space tenancies, for leased vehicles, and for some leases of land in our global development business. We monitor our service arrangements to evaluate whether they meet the definition of a lease. The present value of lease payments, which are either fixed payments, in-substance fixed payments, or variable payments tied to an index or rate are recognized on the consolidated balance sheet with corresponding lease liabilities and right-of-use assets upon the commencement of the lease. These lease costs are expensed over the respective lease term in accordance with the classification of the lease (i.e., operating versus finance classification). Variable lease payments not tied to an index or rate are expensed as incurred and are not subject to capitalization. The base terms for our lease arrangements typically do not extend beyond 10 years, except for land leases. We commonly have renewal options in our leases, but most of these options do not create a significant economic incentive for us to extend the lease term. Therefore, payments during periods covered by these renewal options are typically not included in our lease liabilities and right-of-use assets. Specific to our vehicle leases, early termination options are common and economic penalties associated with early termination of these contracts are typically significant enough to make it reasonably certain that we will not exercise such options. Therefore, payments during periods covered by these early termination options in vehicle leases are typically included in our lease liabilities and right-of-use assets. As an accounting policy election, our short-term leases with an initial term of 12 months or less are not recognized as lease liabilities and right-of-use assets in the consolidated balance sheets. The rent expense associated with short term leases is recognized on a straight-line basis over the lease term and was not significant. Most of our office space leases include variable payments based on our share of actual common area maintenance and operating costs of the leased property. Many of our vehicle leases include variable payments based on actual service and fuel costs. For both office space and vehicle leases, we have elected the practical expedient to not separate lease components from non-lease components. Therefore, these costs are classified as variable lease payments. Lease payments are typically discounted at our incremental borrowing rate because the interest rate implicit in the lease cannot be readily determined in the absence of key inputs which are typically not reported by our lessors. Because we do not generally borrow on a collateralized basis, judgement was used to estimate the secured borrowing rate associated with our leases based on relevant market data and our inputs applied to accepted valuation methodologies. The incremental borrowing rate calculated for each lease also reflects the lease term, currency, and geography specific to each lease. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred in connection with financing activities are generally deferred and amortized over the terms of the related debt agreements ranging up to eleven years. Debt issuance costs related to a recognized debt liability are presented in the accompanying consolidated balance sheets as a direct deduction from the carrying amount of that debt liability. Amortization of these costs is charged to interest expense in the accompanying consolidated statements of operations. Accounting Standards Update (ASU) 2015-15, “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” permits classifying debt issuance costs associated with a line of credit arrangement as an asset, regardless of whether there are any outstanding borrowings on the arrangement. Total deferred financing costs, net of accumulated amortization, related to our revolving line of credit have been included in other assets in the accompanying consolidated balance sheets and were $8.7 million and $11.1 million as of December 31, 2023 and 2022, respectively. See Note 11 for additional information on activities associated with our debt. |
Revenue Recognition, Remaining Performance Obligations, Contract Assets and Contract Liabilities, and Contract Costs | Revenue Recognition We account for revenue with customers in accordance with the “ Revenue from Contracts with Customers ” topic of the FASB ASC (Topic 606). Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The following is a description of principal activities – separated by reportable segments – from which we generate revenue. For more detailed information about our reportable segments, see Notes 18 and 19. Advisory Services Our Advisory Services segment provides a comprehensive range of services globally, including property leasing, property sales, mortgage services, property management and valuation services. Property Leasing and Property Sales We provide strategic advice and execution for owners, investors, and occupiers of real estate in connection with the leasing of office, industrial and retail space. We also offer clients fully integrated property sales services under the CBRE Capital Markets brand. We are compensated for our services in the form of a commission and, in some instances, may earn various forms of variable incentive consideration. Our commission is paid upon the occurrence of certain contractual event(s) which may be contingent. For example, a portion of our leasing commission may be paid upon signing of the lease by the tenant, with the remaining paid upon occurrence of another future contingent event (e.g., payment of first month’s rent or tenant move-in). For leases, we typically satisfy our performance obligation at a point in time when control is transferred; generally, at the time of the first contractual event where there is a present right to payment. We look to history, experience with a customer, and deal specific considerations as part of the most likely outcome estimation approach to support our judgement that the second contingency (if applicable) will be met. Therefore, we typically accelerate the recognition of the revenue associated with the second contingent event. For sales, our commission is typically paid at the closing of the sale, which represents transfer of control for services to the customer. In addition to our commission, we may recognize other forms of variable consideration which can include, but are not limited to, commissions subject to concession or claw back and volume-based discounts or rebates. We assess variable consideration on a contract-by-contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. We recognize variable consideration if it is deemed probable that there will not be significant reversal in the future. Mortgage Originations and Loan Sales We offer clients commercial mortgage and structured financing services. Fees from services within our mortgage brokerage business that are in the scope of Topic 606 include fees earned for the brokering of commercial mortgage loans primarily through relationships established with investment banking firms, national and regional banks, credit companies, insurance companies and pension funds. We are compensated for our brokerage services via a fee paid upon successful placement of a commercial mortgage borrower with a lender who will provide financing. The fee earned is contingent upon the funding of the loan, which represents the transfer of control for services to the customer. Therefore, we typically satisfy our performance obligation at the point in time of the funding of the loan. Revenue from fees earned from Government-Sponsored Enterprises (GSEs) are out of the scope of Topic 606. We also earn fees from the origination and sale of commercial mortgage loans for which the company retains the servicing rights. These fees are governed by the “ Fair Value Measurements and Disclosures ” topic (Topic 820) and “ Transfers and Servicing ” topic (Topic 860) of the FASB ASC. Upon origination of a mortgage loan held for sale, the fair value of the mortgage servicing rights (MSR) to be retained is included in the forecasted proceeds from the anticipated loan sale and results in a net gain (which is reflected in revenue). Upon sale, we record a servicing asset or liability based on the fair value of the retained MSR associated with the transferred loan. Subsequent to the initial recording, MSRs are amortized and carried at the lower of amortized cost or fair value in other intangible assets in the accompanying consolidated balance sheets. They are amortized in proportion to and over the estimated period that the servicing income is expected to be received. Property Management Services We provide property management services on a contractual basis for owners of and investors in office, industrial and retail properties. These services include marketing, building engineering, accounting, and financial services. We are compensated for our services through a monthly management fee earned based on either a specified percentage of the monthly rental income, rental receipts generated from the property under management or a fixed fee. We are also often reimbursed for our administrative and payroll costs directly attributable to the properties under management. Property management services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees associated with the services performed. The amount of revenue recognized is presented gross for any services provided by our employees, as we control them. We generally do not control third-party services delivered to property management clients. As such, we generally report revenues net of third-party reimbursements. Valuation Services We provide valuation services that include market-value appraisals, litigation support, discounted cash flow analyses, feasibility studies as well as consulting services such as property condition reports, hotel advisory and environmental consulting. We are compensated for valuation services in the form of a fee, which is payable on the occurrence of certain events (e.g., a portion on the delivery of a draft report with the remaining on the delivery of the final report). For consulting services, we may be paid based on the occurrence of time or event-based milestones (such as the delivery of draft reports). We typically satisfy our performance obligation for valuation services as services are rendered over time. Global Workplace Solutions Our Global Workplace Solutions segment provides a broad suite of integrated, contractually-based outsourcing services globally for occupiers of real estate, including facilities management, and project management services. Facilities Management and Project Management Services Facilities management involves the day-to-day management of client-occupied space and includes headquarters, regional offices, administrative offices, data centers and other critical facilities, manufacturing and laboratory facilities, distribution facilities and retail space. Contracts for facilities management services are often structured so we are reimbursed for client-dedicated personnel costs and subcontracted vendor costs as well as associated overhead expenses plus a monthly fee, and, in some cases, annual incentives tied to agreed upon performance targets, with any penalties typically capped. In addition, we have contracts for facilities management services based on fixed fees or guaranteed maximum prices. Fixed fee contracts are typically structured where an agreed upon scope of work is delivered for a fixed price while guaranteed maximum price contracts are structured with an agreed upon scope of work that will be provided to the client for a not to exceed price. Facilities management services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is typically recognized at the end of each period for the fees associated with the services performed. Project management services are often provided on a portfolio wide or programmatic basis. Revenues from project management services generally include construction management, fixed management fees, variable fees, and incentive fees if certain agreed upon performance targets are met. Revenues from project management may also include reimbursement of payroll and related costs for personnel providing the services and subcontracted vendor costs. Project management services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is typically recognized at the end of each period for the fees associated with the services performed. The amount of revenue recognized is presented gross for any services provided by our employees, as we control them. This is evidenced by our obligation for their performance and our ability to direct and redirect their work, as well as negotiate the value of such services. The amount of revenue recognized related to the majority of facilities management contracts and certain project management arrangements is presented gross (with offsetting expense recorded in cost of revenue) for reimbursements of costs of third-party services because we control those services that are delivered to the client. In the instances when we do not control third-party services delivered to the client, we report revenues net of the third-party reimbursements. In addition to our management fee, we receive various types of variable consideration which can include but is not limited to key performance indicator bonuses or penalties which may be linked to subcontractor performance, gross maximum price, glidepaths, savings guarantees, shared savings, or fixed fee structures. We assess variable consideration on a contract-by-contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. Using management assessments and historical results and statistics, we recognize revenue if it is deemed probable there will not be significant reversal in the future. Real Estate Investments Our Real Estate Investments segment is comprised of investment management services provided globally and development services in the U.S., the U.K. and Continental Europe. Investment Management Services Our investment management services are provided to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors seeking to generate returns and diversification through investment in real assets. We sponsor investment programs that span the risk/return spectrum in North America, Europe, Asia, and Australia. We are typically compensated in the form of a base management fee, disposition fees, acquisition fees and incentive fees in the form of performance fees or carried interests based on fund type (open or closed ended, respectively). For the base management fees, we typically satisfy the performance obligation as service is rendered over time pursuant to the series guidance. Consistent with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees associated with the services performed. For acquisition and disposition services, we typically satisfy the performance obligation at a point in time (at acquisition or upon disposition). For contracts with contingent fees, including performance fees, incentive fees and carried interests, we assess variable consideration on a contract-by-contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. Revenue associated with performance fees and carried interests are typically impacted by volatility in the real estate market, a broad range of possible outcomes, and other factors in the market that are outside of our control. Development Services Our development services consist of real estate development and investment activities in the U.S., the U.K. and Europe to users of and investors in commercial real estate, as well as for our own account. We pursue opportunistic, risk-mitigated development and investment in commercial real estate across a wide spectrum of property types, including industrial, office and retail properties; healthcare facilities of all types (medical office buildings, hospitals and ambulatory surgery centers); and multi-family residential/mixed-use projects. We pursue development and investment activity on behalf of our clients on a fee basis with no, or limited, ownership interest in a property, in partnership with our clients through co-investment – either on an individual project basis or through programs with certain strategic capital partners or for our own account with 100% ownership. Development services represent a series of distinct daily services rendered over time. Consistent with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees associated with the services performed. Fees are typically payable monthly over the service term or upon contractual defined events, like project milestones. In addition to development fee revenue, we receive various types of variable consideration which can include, but is not limited to, contingent lease-up bonuses, cost saving incentives, profit sharing on sales and at-risk fees. We assess variable consideration on a contract-by-contract basis, and when appropriate, recognize revenue based on our assessment of the outcome (using the most likely outcome approach or weighted probability) and historical results, if comparable and representative. We accelerate revenue if it is deemed probable there will not be significant reversal in the future. Sales of real estate to customers which are considered an output of ordinary activities are recognized as revenue when or as control of the assets are transferred to the customer. Remaining Performance Obligations Remaining performance obligations represent the aggregate transaction prices for contracts where our performance obligations have not yet been satisfied. As of December 31, 2023, the aggregate amount of transaction price allocated to remaining performance obligations in our property leasing business was not significant. We apply the practical expedient related to remaining performance obligations that are part of a contract that has an original expected duration of one year or less and the practical expedient related to variable consideration from remaining performance obligations pursuant to the series guidance. All of our remaining performance obligations apply to one of these practical expedients. Contract Assets and Contract Liabilities Contract assets represent assets for revenue that has been recognized in advance of billing the customer and for which the right to bill is contingent upon something other than the passage of time. This is common for contingent portions of commissions in brokerage, development and construction revenue in development services and incentive fees present in various businesses. Billing requirements vary by contract but are generally structured around fixed monthly fees, reimbursement of employee and other third-party costs, and the achievement or completion of certain contingent events. When we receive consideration, or such consideration is unconditionally due, from a customer prior to transferring services to the customer under the terms of the services contract, we record deferred revenue, which represents a contract liability. We recognize the contract liability as revenue once we have transferred control of the service to the customer and all revenue recognition criteria are met. Contract assets and contract liabilities are determined for each contract on a net basis. For contract assets, we classify the short-term portion as a separate line item within current assets and the long-term portion as a separate line item in the accompanying consolidated balance sheets. For contract liabilities, we classify the short-term portion as a separate line item within current liabilities and the long-term portion within other liabilities, long-term in the accompanying consolidated balance sheets. Contract Costs Contract costs, accounted for under “ Other Assets and Deferred Costs – Contracts with Customers ,” topic of the FASB ASC (Topic 340-10) primarily consist of upfront costs incurred to obtain or to fulfill a contract. These costs are typically found within our Global Workplace Solutions segment. Such costs relate to transition costs to fulfill contracts prior to services being rendered and are included within other intangible assets in the accompanying consolidated balance sheets. Capitalized transition costs are amortized based on the transfer of services to which the assets relate which can vary on a contract-by-contract basis and are included in cost of revenue in the accompanying consolidated statement of operations. For contract costs that are recognized as assets, we periodically review for impairment. Applying the contract cost practical expedient, we recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts We record accounts receivable for our unconditional rights to consideration arising from our performance under contracts with customers. The carrying value of such receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value. We estimate our allowance for doubtful accounts for specific accounts receivable balances based on historical collection trends, the age of outstanding accounts receivables and existing economic conditions associated with the receivables. Past-due accounts receivable balances are written off when our internal collection efforts have been unsuccessful. As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised service to a customer and when the customer pays for that service will be one year or less. We do not typically include extended payment terms in our contracts with customers. |
Business Promotion and Advertising Costs | Business Promotion and Advertising Costs |
Foreign Currencies | Foreign Currencies The financial statements of subsidiaries located outside the U.S. are generally measured using the local currency as the functional currency. The assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date, and income and expenses are translated at the average monthly rate. The resulting translation adjustments are included in the accumulated other comprehensive income/loss component of equity. Gains and losses resulting from foreign currency transactions are included in the results of operations. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income/loss. In the accompanying consolidated balance sheets, accumulated other comprehensive income/loss primarily consists of foreign currency translation adjustments, qualified derivative activities, unrealized holding gains on available for sale debt securities and pension liability adjustments. Foreign currency translation adjustments exclude any income tax effects given that earnings of non-U.S. subsidiaries are deemed to be reinvested for an indefinite period of time (see Note 15). |
Mortgage Servicing Rights (MSRs) | Mortgage Servicing Rights (MSRs) In connection with the origination and sale of mortgage loans with servicing rights retained, we record servicing assets or liabilities based on the fair value of the mortgage servicing rights on the date the loans are sold. Our MSRs are initially recorded at fair value. Subsequent to the initial recording, MSRs are amortized and carried at the lower of amortized cost or fair value in other intangible assets in the accompanying consolidated balance sheets. They are amortized in proportion to and over the estimated period that net servicing income is expected to be received based on projections and timing of estimated future net cash flows. |
Warehouse Receivables | Warehouse Receivables Our wholly-owned subsidiary CBRE Capital Markets, Inc. (CBRE Capital Markets) is a Federal Home Loan Mortgage Corporation (Freddie Mac) approved Multifamily Program Plus Seller/Servicer and an approved Federal National Mortgage Association (Fannie Mae) Aggregation and Negotiated Transaction Seller/Servicer. In addition, CBRE Capital Markets’ wholly-owned subsidiary CBRE Multifamily Capital, Inc. (CBRE MCI) is an approved Fannie Mae Delegated Underwriting and Servicing (DUS) Seller/Servicer and CBRE Capital Markets’ wholly-owned subsidiary CBRE HMF, Inc. (CBRE HMF) is a U.S. Department of Housing and Urban Development (HUD) approved Non-Supervised Federal Housing Authority (FHA) Title II Mortgagee, an approved Multifamily Accelerated Processing (MAP) lender and an approved Government National Mortgage Association (Ginnie Mae) issuer of mortgage-backed securities (MBS). Under these arrangements, before loans are originated through proceeds from warehouse lines of credit, we obtain either a contractual loan purchase commitment from either Freddie Mac or Fannie Mae or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS that will be secured by the loans. The warehouse lines of credit are generally repaid within a one-month period when Freddie Mac or Fannie Mae buys the loans or upon settlement of the Fannie Mae or Ginnie Mae MBS, while we retain the servicing rights. Loans are funded at the prevailing market rates. We elect the fair value option for all warehouse receivables. At December 31, 2023 and 2022, 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. |
Accounting for Broker Draws | Accounting for Broker Draws As part of our recruitment efforts relative to new U.S. brokers, we offer a transitional broker draw arrangement. Our broker draw arrangements generally last until such time as a broker’s pipeline of business is sufficient to allow the broker to earn sustainable commissions. This program is intended to provide the broker with a minimal amount of cash flow to allow adequate time for his or her training as well as time for him or her to develop business relationships. Similar to traditional salaries, the broker draws are paid irrespective of the actual revenues generated by the broker. Often these broker draws represent the only form of compensation received by the broker. Furthermore, it is not our general policy to pursue collection of unearned broker draws paid under this arrangement. As a result, we have concluded that broker draws are economically equivalent to salaries paid and accordingly charge them to compensation expense as incurred over the service period. The broker is also entitled to earn a commission on completed revenue transactions, less any amounts previously paid to the broker in the form of a draw. |
Stock-Based Compensation | Stock-Based Compensation We account for all employee awards under the fair value recognition provisions of the “ Compensation – Stock Compensation ” topic of the FASB ASC (Topic 718). Topic 718 requires the measurement of compensation cost at the grant date, based upon the estimated fair value of the award, and requires amortization of the related expense over the employee’s requisite service period. We do not estimate forfeitures, but instead recognize forfeitures when they occur. See Note 14 for additional information on our stock-based compensation plans. |
Income Per Share | Income Per Share Basic income per share attributable to CBRE Group, Inc. is computed by dividing net income attributable to CBRE Group, Inc. stockholders by the weighted average number of common shares outstanding during each period. The computation of diluted income per share attributable to CBRE Group, Inc. generally further assumes the dilutive effect of potential common shares, which include certain contingently issuable shares. Contingently issuable shares consist of non-vested stock awards. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method in accordance with the “ Accounting for Income Taxes ” topic of the FASB ASC (Topic 740). Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax basis of assets and liabilities and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured by applying enacted tax rates and laws and are released in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all the deferred tax asset will not be realized. We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more than likely that the position will be sustained upon examination, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than likely of being realized upon ultimate settlement. See Note 15 for additional information on income taxes. |
Self-Insurance | Self-Insurance Our wholly-owned captive insurance company, which is subject to applicable insurance rules and regulations, insures our exposure related to workers’ compensation insurance, general liability insurance and automotive insurance for our U.S. operations risk on a primary basis and we purchase excess coverage from unrelated insurance carriers. The captive insurance company also insures primary risk relating to professional indemnity claims globally. Given the nature of these types of claims, it may take several years for resolution and determination of the cost of these claims. We are required to estimate the cost of these claims in our financial statements. |
Contingencies | Contingencies |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Derivative instruments are carried at fair value in the accompanying consolidated balance sheets in either accounts payable and accrued expenses, other liabilities or other assets. We do not net derivatives on our balance sheet. The change in fair value of derivatives that have been designated in qualifying fair value hedges are recognized in the same financial statement line item that the hedged item impacts. Changes in fair value due to components that have been excluded from effectiveness assessments are accumulated in other comprehensive income (loss), and released to earnings in a systematic and rational approach. Cash flows arising from derivative instruments are classified within the consolidated statements of cash flows within the same category that the cash flows from the item being hedged. Derivative instruments that are designated as hedging instruments and qualify for hedge accounting must be highly effective in mitigating the designated changes in fair value or cash flows of the hedged item. We assess at the hedge's inception, and continue to assess on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to be highly effective in offsetting changes in the hedged items. We may enter into derivative contracts that are intended to economically hedge certain of our risk, even though we may not elect to apply hedge accounting. In all cases, we view derivative financial instruments as a risk management tool and, accordingly, do not use derivatives for trading or speculative purposes. During 2023, we had a single cross-currency swap to hedge the changes in fair value of foreign currency denominated term loan (see Note 11 for additional information on the term loan) due to changes in spot foreign currency rates. The impact of the fair value of the swap was deemed immaterial to the accompanying consolidated financial statements. |
Employee Separation Benefits | Employee Separation Benefits One-time termination benefits are expensed at the date the company notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Ongoing benefits are expensed when restructuring activities are probable and the benefit amounts are estimable. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We adopted ASU 2021-08 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-01, “ Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method.” This ASU allows nonprepayable financial assets to be included in a closed portfolio hedged using the portfolio layer method. The expanded scope permits an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We adopted ASU 2022-01 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures.” This ASU eliminates the accounting guidance for Troubled Debt Restructuring by creditors in 310-40 and enhances disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires entities to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We adopted ASU 2022-02 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In September 2022, the FASB issued ASU 2022-04, “Supplier Finance Programs (Sub Topic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its supplier finance programs in each annual reporting period including the key terms of the program and the following for obligations that the buyer has confirmed as valid to the provider: (1) the amount outstanding that remains unpaid by the buyer as of the end of the annual period, (2) a description of where those obligations are presented in the balance sheet, and (3) a rollforward of those obligations during the annual period, including the amount of obligations confirmed and the amount of obligations subsequently paid. Additionally, in each interim period, the buyer should disclose the amount of obligations outstanding that the buyer has confirmed as valid to the finance provider as of the end of the interim period. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We adopted ASU 2022-04 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. Recent Accounting Pronouncements Pending Adoption In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” Topic 820, Fair Value Measurement, states that a reporting entity should consider the characteristics of the asset or liability when measuring the fair value, including restrictions on the sale of the asset or liability, if a market participant would take those characteristics into account and the key to that determination is the unit of account for the asset or liability being measured at fair value. Topic 820 contains conflicting guidance on what the unit of account is when measuring the fair value of an equity security and this has resulted in diversity in practice on whether the effects of a contractual restriction that prohibits the sale of an equity security should be considered in measuring the equity security’s fair value. To address this, the amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU introduces new disclosure requirements to provide investors with information about the restriction including the nature and remaining duration of the restriction. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” This update requires that leasehold improvements associated with common control leases be amortized over the useful life of the leasehold improvements to the common control group (regardless of the lease term) and accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. This update also provides a practical expedient for private companies and not-for-profit entities to use written terms and conditions of a common control arrangement to determine if a lease exists and the classification and accounting for that lease. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization method.” This update permits an accounting election to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This update enhances reportable segment disclosures by requiring a public entity to: 1) disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, 2) disclose, on an annual and interim basis, an amount of other segment items by reportable segment and a description of its composition, 3) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods, 4) disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources, and 5) provide all the disclosures required by this update and all existing segment disclosures in Topic 280 if the entity has a single reportable segment. This ASU also clarifies that, in addition to the measure that is most consistent with the measurement principles under GAAP, a public entity is not precluded from reporting additional measures of a segment’s profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, “ Improvements to Income Tax Disclosures. ” This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid and will be effective for annual periods beginning after December 15, 2024. The new requirements should be applied on a prospective basis with an option to apply them retrospectively. Early adoption is permitted. We are evaluating the impact that ASU 2023-09 will have on our consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Real Estate Assets | A summary of our real estate assets is as follows (dollars in millions): December 31, 2023 2022 Real estate under development, current (included in other current assets) $ — $ 193 Real estate and other assets held for sale (included in other current assets) 42 97 Real estate under development 300 172 Real estate held for investment (included in other assets, net) 179 45 Total real estate $ 521 $ 507 |
Schedule of Loan Servicing Rights Recognized | The amount of MSRs recognized during the years ended December 31, 2023, 2022 and 2021 was as follows (dollars in millions): Year Ended December 31, 2023 2022 2021 Beginning balance, mortgage servicing rights $ 561 $ 579 $ 557 Mortgage servicing rights recognized 82 146 194 Mortgage servicing rights sold — — — Amortization expense (144) (164) (172) Ending balance, mortgage servicing rights $ 499 $ 561 $ 579 |
Schedule of Assumptions Used in Measuring Fair Value of Servicing Assets | The key assumptions used during the years ended December 31, 2023, 2022 and 2021 in measuring fair value were as follows: Year Ended December 31, 2023 2022 2021 Weighted average discount rate 12.96 % 12.87 % 12.62 % Weighted average conditional prepayment rate 11.97 % 10.12 % 9.78 % |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Company’s Allocation of Purchase Price to the Intangible Assets, and Goodwill Acquired | The following table identifies the company’s allocation of purchase price to goodwill and other intangible assets by category (dollars in millions): Amount Assigned at Acquisition Date Weighted-Average Life Goodwill $ 199 N/A Customer relationships 75 10 years Other intangible assets 7 4 years Total $ 281 The following table summarizes the preliminary fair values assigned to the identified assets acquired and liabilities assumed at the acquisition date on November 1, 2021. (Dollars in millions) Assets Acquired: Cash and cash equivalents $ 44 Receivables and other current assets 266 Other intangible assets, net 1,105 Other assets, net 110 Total assets acquired 1,525 Liabilities Assumed: Accounts payable and other liabilities 277 Non-current operating lease liabilities 31 Deferred tax liability 291 Total liabilities assumed 599 Non-controlling Interest Acquired 774 Estimated Fair Value of Net Assets Acquired $ 152 |
Schedule of Business Acquisitions, by Acquisition | The following summarizes the consideration transferred at closing for the Turner & Townsend Acquisition (dollars in millions): Cash consideration (1) $ 723 Deferred consideration 494 Total consideration $ 1,217 ________________________________________________________________________________________________________________________________________ (1) Represents cash paid at closing |
Summary of Excess Purchase Price Over Estimated Fair Value of Net Assets Acquired | The following represents the summary of the excess purchase price over the fair value of net assets acquired and fair value of non-controlling interest (dollars in millions): Purchase price $ 1,217 Less: Estimated fair value of net assets acquired 152 Plus: Estimated fair value of non-controlling interest (1) 32 Excess purchase price over estimated fair value of net assets acquired $ 1,097 ________________________________________________________________________________________________________________________________________ (1) Represents fair value of legacy non-controlling interest of Turner & Townsend |
Schedule of Trademarks Acquired as Part of Business Combination | In connection with the Turner & Townsend Acquisition, below is a summary of the value allocated to the intangible assets acquired (dollars in millions): Asset Class Amortization Amount Assigned at Acquisition Date Customer relationships 5-11 years $ 754 Backlog 2-4 years 75 Trademark Indefinite 276 |
Summary of Pro Forma Results Prepared for Comparative Purposes | These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the Turner & Townsend Acquisition occurred on January 1, 2020 and may not be indicative of future operating results (dollars in millions, except share data): Year Ended December 31, 2021 2020 Revenue $ 28,546 $ 24,716 Operating income 1,706 944 Net income attributable to CBRE Group, Inc. 1,873 705 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 5.59 $ 2.10 Weighted average shares outstanding for basic income per share 335,232,840 335,196,296 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 5.51 $ 2.08 Weighted average shares outstanding for diluted income per share 339,717,401 338,392,210 |
Warehouse Receivables & Wareh_2
Warehouse Receivables & Warehouse Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Schedule of Warehouse Receivables | A rollforward of our warehouse receivables is as follows (dollars in millions): Beginning balance at December 31, 2022 $ 455 Origination of mortgage loans 9,905 Gains (premiums on loan sales) 27 Proceeds from sale of mortgage loans: Sale of mortgage loans (9,687) Cash collections of premiums on loan sales (27) Proceeds from sale of mortgage loans (9,714) Net increase in mortgage servicing rights included in warehouse receivables 2 Ending balance at December 31, 2023 $ 675 |
Summary of Warehouse Lines of Credit in Place | The following table is a summary of our warehouse lines of credit in place as of December 31, 2023 and 2022 (dollars in millions): December 31, 2023 December 31, 2022 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 12/13/2024 daily floating rate Secured Overnight Financing Rate (SOFR) rate plus 1.50%, with a SOFR adjustment rate of 0.05% $ 1,335 $ 613 $ 1,335 $ 331 JP Morgan (Business Lending Activity) 12/13/2024 daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05% 15 — 15 — Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program Cancelable daily floating SOFR plus 1.45%, with a SOFR floor of 0.25% 650 7 650 — TD Bank, N.A. (TD Bank) (2) 7/15/2024 daily floating rate SOFR plus 1.30%, with a SOFR adjustment rate of 0.10% 600 28 800 — Bank of America, N.A. (BofA) (3) 5/22/2024 daily floating SOFR rate plus 1.25%, with a SOFR adjustment rate of 0.10% 350 18 350 115 BofA (4) 5/22/2024 daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% 250 — 250 — MUFG Union Bank, N.A. (Union Bank) (5) — — 200 2 $ 3,200 $ 666 $ 3,600 $ 448 ________________________________________________________________________________________________________________________________________ (1) Effective December 15, 2023, this facility was amended and renewed at an interest rate of daily floating rate SOFR plus 1.50%, with a SOFR adjustment rate of 0.05% and a maturity date of December 13, 2024. (2) Effective July 15, 2023, this facility was renewed and amended to a maximum aggregate principal amount of $300.0 million, with an uncommitted $300.0 million temporary line of credit and a maturity date of July 15, 2024. As of December 31, 2023, the uncommitted $300.0 million temporary line of credit was not utilized. (3) Effective September 1, 2023, this facility was amended with a downward revised interest rate of daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% and a maturity date of May 22, 2024. (4) Effective September 1, 2023, this facility was amended with a downward revised interest rate of daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10%, and a maturity date of May 22, 2024. (5) This facility expired on June 27, 2023, and was not renewed. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Maximum Exposure to Loss | As of December 31, 2023 and 2022, our maximum exposure to loss related to the VIEs that are not consolidated was as follows (dollars in millions): December 31, 2023 2022 Investments in unconsolidated subsidiaries $ 165 $ 153 Co-investment commitments 58 84 Maximum exposure to loss $ 223 $ 237 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022 (dollars in millions): December 31, 2023 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 12 $ — $ — $ 12 Debt securities issued by U.S. federal agencies — 11 — 11 Corporate debt securities — 44 — 44 Asset-backed securities — 1 — 1 Total available for sale debt securities 12 56 — 68 Equity securities 41 — — 41 Investments in unconsolidated subsidiaries 168 — 477 645 Warehouse receivables — 675 — 675 Other assets — — 16 16 Total assets at fair value $ 221 $ 731 $ 493 $ 1,445 Liabilities Derivative liabilities — 5 — 5 Total liabilities at fair value $ — $ 5 $ — $ 5 December 31, 2022 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 6 $ — $ — $ 6 Debt securities issued by U.S. federal agencies — 9 — 9 Corporate debt securities — 44 — 44 Asset-backed securities — 3 — 3 Total available for sale debt securities 6 56 — 62 Equity securities 34 — — 34 Investments in unconsolidated subsidiaries 160 — 461 621 Warehouse receivables — 455 — 455 Other assets — — 14 14 Total assets at fair value $ 200 $ 511 $ 475 $ 1,186 |
Schedule of Reconciliation for Assets Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in millions): Investment in Unconsolidated Subsidiaries Other assets Balance as of December 31, 2021 $ 407 $ (11) Transfer in (out) (15) — Net change in fair value (38) 3 Purchases/ Additions 107 22 Balance as of December 31, 2022 461 14 Transfer in (out) — (10) Net change in fair value 16 5 Purchases/ Additions — 7 Balance as of December 31, 2023 $ 477 $ 16 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other assets (liabilities) Other income (loss) |
Schedule of Reconciliation for Liabilities Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in millions): Investment in Unconsolidated Subsidiaries Other assets Balance as of December 31, 2021 $ 407 $ (11) Transfer in (out) (15) — Net change in fair value (38) 3 Purchases/ Additions 107 22 Balance as of December 31, 2022 461 14 Transfer in (out) — (10) Net change in fair value 16 5 Purchases/ Additions — 7 Balance as of December 31, 2023 $ 477 $ 16 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other assets (liabilities) Other income (loss) |
Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments | The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments as of December 31, 2023 : Valuation Technique Unobservable Input Range Weighted Average Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 25 % — Monte Carlo Volatility 45% - 69% 51 % Risk free interest rate 4 % — Discount Yield 25 % — Other assets Discounted cash flow Discount rate 25 % — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following (dollars in millions): December 31, Useful Lives 2023 2022 Computer hardware and software 2-10 years $ 1,341 $ 1,158 Leasehold improvements 1-15 years 658 611 Furniture and equipment 1-10 years 298 268 Construction in progress N/A 186 185 Total cost 2,483 2,222 Accumulated depreciation and amortization 1,576 1,386 Property and equipment, net $ 907 $ 836 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill by Segment | The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 (dollars in millions): Advisory Global Real Estate Total Balance as of December 31, 2021 Goodwill $ 3,299 $ 2,174 $ 616 $ 6,089 Accumulated impairment losses (762) (175) (157) (1,094) 2,537 1,999 459 4,995 Purchase accounting entries related to acquisitions 20 60 — 80 Impairment — — (26) (26) Foreign exchange movement (36) (124) (21) (181) Balance as of December 31, 2022 Goodwill 3,283 2,110 595 5,988 Accumulated impairment losses (762) (175) (183) (1,120) 2,521 1,935 412 4,868 Purchase accounting entries related to acquisitions 91 93 3 187 Impairment — — — — Foreign exchange movement 9 57 8 74 Balance as of December 31, 2023 Goodwill 3,383 2,260 606 6,249 Accumulated impairment losses (762) (175) (183) (1,120) $ 2,621 $ 2,085 $ 423 $ 5,129 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets totaled $2.1 billion, net of accumulated amortization of $2.2 billion as of December 31, 2023, and $2.2 billion, net of accumulated amortization of $1.9 billion, as of December 31, 2022 and are comprised of the following (dollars in millions): December 31, 2023 2022 Gross Accumulated Gross Accumulated Unamortizable intangible assets: Management contracts $ 62 $ 60 Trademarks 317 312 379 372 Amortizable intangible assets: Customer relationships 1,727 $ (893) 1,637 $ (774) Mortgage servicing rights 1,055 (556) 1,030 (469) Trademarks/Trade names 315 (147) 305 (129) Management contracts 122 (121) 149 (146) Covenant not to compete 4 (1) 4 (1) Other 658 (461) 612 (397) 3,881 (2,179) 3,737 (1,916) Total intangible assets $ 4,260 $ (2,179) $ 4,109 $ (1,916) |
Schedule of Finite-Lived Intangible Assets | Other intangible assets totaled $2.1 billion, net of accumulated amortization of $2.2 billion as of December 31, 2023, and $2.2 billion, net of accumulated amortization of $1.9 billion, as of December 31, 2022 and are comprised of the following (dollars in millions): December 31, 2023 2022 Gross Accumulated Gross Accumulated Unamortizable intangible assets: Management contracts $ 62 $ 60 Trademarks 317 312 379 372 Amortizable intangible assets: Customer relationships 1,727 $ (893) 1,637 $ (774) Mortgage servicing rights 1,055 (556) 1,030 (469) Trademarks/Trade names 315 (147) 305 (129) Management contracts 122 (121) 149 (146) Covenant not to compete 4 (1) 4 (1) Other 658 (461) 612 (397) 3,881 (2,179) 3,737 (1,916) Total intangible assets $ 4,260 $ (2,179) $ 4,109 $ (1,916) |
Investments in Unconsolidated_2
Investments in Unconsolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Condensed Financial Information of Equity Method Investments | The following table represents the composition of investment in unconsolidated subsidiaries under equity method of accounting and fair value option (dollars in millions): December 31, Investment type 2023 2022 Real Estate Investments (in projects and funds) $ 661 $ 623 Investment in Altus: Class A common stock (1) 168 160 Alignment shares (2) 56 60 Subtotal 224 220 Other (3) 489 475 Total investment in unconsolidated subsidiaries $ 1,374 $ 1,318 ________________________________________________________________________________________________________________________________________ (1) CBRE held 24,556,012 and 24,554,201 shares of Altus Class A common stock as of December 31, 2023 and December 31, 2022, respectively, representing approximate ownership of 15.57%. (2) The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common stock based on the achievement of certain total return thresholds on Altus Class A common stock as of the relevant measurement date over the seven fiscal years following the merger. As of March 31, 2023 (the second measurement date), 201,250 of alignment shares automatically converted into 2,011 shares of Class A common stock, of which CBRE was entitled to 1,811 shares. (3) Consists of our investments in Industrious and other non-public entities. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in millions): December 31, 2023 2022 Combined Condensed Balance Sheets Information: Current assets $ 8,884 $ 9,044 Non-current assets 44,116 45,616 Total assets $ 53,000 $ 54,660 Current liabilities $ 1,905 $ 2,346 Non-current liabilities 17,288 15,858 Total liabilities $ 19,193 $ 18,204 Non-controlling interests $ 1,065 $ 926 Year Ended December 31, 2023 2022 2021 Combined Condensed Statements of Operations Information: Revenue $ 7,178 $ 2,783 $ 2,681 Operating income 4,984 1,215 1,371 Net income (1) 760 4,102 3,260 _______________ (1) Included in net income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income. |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt and Short-Term Borrowings | Total long-term debt and short-term borrowings consist of the following (dollars in millions): December 31, 2023 2022 Long-Term Debt Senior term loans $ 755 $ 428 5.950% senior notes due in 2034, net of unamortized discount 976 — 4.875% senior notes due in 2026, net of unamortized discount 599 598 2.500% senior notes due in 2031, net of unamortized discount 494 494 Total long-term debt 2,824 1,520 Less: current maturities of long-term debt 9 428 Less: unamortized debt issuance costs 11 6 Total long-term debt, net of current maturities $ 2,804 $ 1,086 Short-Term Borrowings Warehouse lines of credit, with interest ranging from 5.51% to 8.15%, due in 2024 $ 666 $ 448 Revolving credit facility, with interest ranging from 5.03% to 5.23% — 178 Other 16 43 Total short-term borrowings $ 682 $ 669 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to our leases is as follows (dollars in millions): December 31, Category Classification 2023 2022 Assets Operating Operating lease assets $ 1,030 $ 1,033 Financing Other assets, net 210 91 Total leased assets $ 1,240 $ 1,124 Liabilities Current: Operating Operating lease liabilities $ 242 $ 230 Financing Other current liabilities 36 33 Non-current: Operating Non-current operating lease liabilities 1,089 1,080 Financing Other liabilities 72 58 Total lease liabilities $ 1,439 $ 1,401 |
Schedule of Components of Lease Costs | Components of lease cost are as follows (dollars in millions): Year Ended December 31, Component Classification 2023 2022 Operating lease cost Operating, administrative and other $ 220 $ 196 Financing lease cost: Amortization of right-to-use assets (1) 36 31 Interest on lease liabilities Interest expense 1 1 Variable lease cost (2) 115 79 Sublease income Revenue (5) (4) Total lease cost $ 367 $ 303 ________________________________________________________________________________________________________________________________________ (1) Amortization costs of $25.2 million and $26.4 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Amortization costs of $10.8 million and $4.2 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. (2) Variable lease costs of $24.0 million and $23.6 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Variable lease costs of $64.1 million and $55.6 million from all other leases are included in the “Operating, administrative and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. |
Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases | Weighted average remaining lease term and discount rate for our operating and finance leases are as follows: December 31, 2023 2022 Weighted-average remaining lease term: Operating leases (1) 41 years 42 years Financing leases (2) 71 years 75 years Weighted-average discount rate: Operating leases (1) 4.8% 4.5% Financing leases (2) 5.2% 5.1% ________________________________________________________________________________________________________________________________________ (1) Operating leases as of December 31, 2023 and 2022 include three 90+ year leases on real estate under development. If excluded, the weighted-average remaining lease term would be 7 years (for both years) and weighted-average discount rate would be 3.5% as of December 31, 2023 and 3.0% as of December 31, 2022. (2) Finance leases as of December 31, 2023 and 2022 included a 99 year lease on real estate held for investment. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 2.5%, respectively, as of December 31, 2023 and 3 years and 1.7%, respectively, as of December 31, 2022. This excludes certain land leases up to 999 years held by our U.K. development business. |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities by fiscal year as of December 31, 2023 are as follows (dollars in millions): Operating Financing 2024 $ 239 $ 38 2025 226 27 2026 210 19 2027 161 11 2028 127 4 Thereafter 1,241 218 Total remaining lease payments at December 31, 2023 2,204 317 Less: Interest 873 209 Present value of lease liabilities at December 31, 2023 $ 1,331 $ 108 |
Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases | Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in millions): Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 237 $ 237 Operating cash outflows from financing leases 3 2 Financing cash outflows from financing leases 38 38 Right-of-use assets obtained in exchange for new operating lease liabilities 154 164 Right-of-use assets obtained in exchange for new financing lease liabilities 54 31 Other non-cash increases in operating lease right-of-use assets (1) 6 32 Other non-cash increases in financing lease right-of-use assets (1) 100 6 ________________________________________________________________________________________________________________________________________ (1) The non-cash activity in the right-of-use assets resulted from lease modifications/remeasurements and terminations. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Fair Value of TSR Performance RSUs | We estimated the fair value of the TSR Performance RSUs referred to above on the date of the grant using a Monte Carlo simulation with the following assumptions: Year Ended December 31, 2022 2021 (1) Volatility of common stock 35.55 % 42.71% - 45.80% Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 1.84 % 0.25% - 0.28% ________________________________________________________________________________________________________________________________________ (1) 2021 grants were made during different dates therefore a range of inputs is presented. |
Schedule of Non-Vested Stock Awards | A summary of the status of our non-vested stock awards is presented in the table below: Shares/Units Weighted Average Balance at December 31, 2020 6,683,412 $ 47.99 Granted 2,531,959 92.16 Performance award achievement adjustments (189,930) 49.76 Vested (1,883,652) 46.34 Forfeited (292,998) 55.80 Balance at December 31, 2021 6,848,791 64.10 Granted 1,796,196 95.01 Performance award achievement adjustments 409,851 77.99 Vested (1,372,123) 57.74 Forfeited (269,636) 79.33 Balance at December 31, 2022 7,413,079 73.67 Granted 1,664,755 78.46 Performance award achievement adjustments 365,965 81.14 Vested (4,001,675) 59.62 Forfeited (221,545) 81.14 Balance at December 31, 2023 5,220,579 86.17 |
Schedule of Amounts Recognized in Balance Sheet | The following table provides amounts recognized related to all of our defined benefit pension plans within the following captions on our consolidated balance sheets (dollars in millions): December 31, 2023 2022 Other assets, net $ 41 $ 56 Other liabilities 85 80 |
Schedule of Expected Benefit Payments | The following table presents estimated future benefit payments as of December 31, 2023. We will fund these obligations from the assets held by these plans. If the assets these plans hold are not sufficient to fund these payments, the company will fund the remaining obligations (dollars in millions): 2024 2025 2026 2027 2028 Thereafter Estimated future benefit payments for defined benefit plans $ 49 $ 47 $ 48 $ 49 $ 51 $ 274 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Provision for Income Taxes | The components of income before provision for income taxes consisted of the following (dollars in millions): Year Ended December 31, 2023 2022 2021 Domestic $ 665 $ 1,275 $ 1,684 Foreign 612 383 726 Total $ 1,277 $ 1,658 $ 2,410 |
Tax Provision (Benefit) | Our tax provision (benefit) consisted of the following (dollars in millions): Year Ended December 31, 2023 2022 2021 Current provision: Federal $ 98 $ 338 $ 275 State 31 99 115 Foreign 242 208 239 Total current provision 371 645 629 Deferred provision: Federal (4) (249) 35 State 4 (56) (5) Foreign (121) (106) (91) Total deferred provision (121) (411) (61) Total provision for income taxes $ 250 $ 234 $ 568 |
Reconciliation of Pre-Tax Income | The following is a reconciliation stated as a percentage of pre-tax income of the U.S. statutory federal income tax rate to our effective tax rate: Year Ended December 31, 2023 2022 2021 Federal statutory tax rate 21 % 21 % 21 % Foreign rate differential (1) — — State taxes, net of federal benefit 2 3 4 Nontaxable or nondeductible items 3 2 — Reserves for uncertain tax positions — 1 1 Tax credits (5) (2) (1) Outside basis differences recognized as a result of a legal entity restructuring — (10) — Other (1) (1) (1) Effective tax rate 19 % 14 % 24 % |
Temporary Tax Effects | Cumulative tax effects of temporary differences are shown below (dollars in millions): December 31, 2023 2022 Assets: Tax losses and tax credits $ 506 $ 369 Operating lease liabilities 343 317 Bonus and deferred compensation 334 372 Bad debt and other reserves 117 103 Pension obligation — 1 All other 188 64 Deferred tax assets, before valuation allowance $ 1,488 $ 1,226 Less: Valuation allowance (357) (255) Deferred tax assets $ 1,131 $ 971 Liabilities: Property and equipment (55) (21) Unconsolidated affiliates and partnerships (115) (93) Capitalized costs and intangibles (531) (562) Operating lease assets (286) (273) All other (38) (38) Deferred tax liabilities $ (1,025) $ (987) Net deferred tax assets/(liabilities) $ 106 $ (16) |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in millions): Year Ended December 31, 2023 2022 Beginning balance, unrecognized tax benefits $ (391) $ (192) Gross increases - tax positions in prior period (12) (42) Gross decreases - tax positions in prior period 1 1 Gross increases - current-period tax positions (18) (167) Decreases relating to settlements — 1 Reductions as a result of lapse of statute of limitations 7 2 Foreign exchange movement — 6 Ending balance, unrecognized tax benefits $ (413) $ (391) |
Income Per Share Information (T
Income Per Share Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Income Per Share | The calculations of basic and diluted income per share attributable to CBRE Group, Inc. stockholders are as follows (dollars in millions, except share and per share data): Year Ended December 31, 2023 2022 2021 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 986 $ 1,407 $ 1,837 Weighted average shares outstanding for basic income per share 308,430,080 322,813,345 335,232,840 Basic income per share attributable to CBRE Group, Inc. stockholders $ 3.20 $ 4.36 $ 5.48 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 986 $ 1,407 $ 1,837 Weighted average shares outstanding for basic income per share 308,430,080 322,813,345 335,232,840 Dilutive effect of contingently issuable shares 4,120,862 4,882,770 4,484,561 Weighted average shares outstanding for diluted income per share 312,550,942 327,696,115 339,717,401 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 3.15 $ 4.29 $ 5.41 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customers | The following tables represent a disaggregation of revenue from contracts with customers by type of service and/or segment (dollars in millions): Year Ended December 31, 2023 Advisory Global Real Estate Corporate, Consolidated Topic 606 Revenue: Facilities management $ — $ 15,205 $ — $ — $ 15,205 Project management — 7,310 — — 7,310 Advisory leasing 3,503 — — 3 3,506 Advisory sales 1,611 — — — 1,611 Property management 1,928 — — (20) 1,908 Valuation 716 — — — 716 Commercial mortgage origination (1) 138 — — — 138 Loan servicing (2) 73 — — — 73 Investment management — — 592 — 592 Development services — — 345 — 345 Topic 606 Revenue 7,969 22,515 937 (17) 31,404 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 286 — — — 286 Loan servicing 244 — — — 244 Development services (3) — — 15 — 15 Total Out of Scope of Topic 606 Revenue 530 — 15 — 545 Total Revenue $ 8,499 $ 22,515 $ 952 $ (17) $ 31,949 Year Ended December 31, 2022 Advisory Global Real Estate Corporate, Consolidated Topic 606 Revenue: Facilities management $ — $ 15,201 $ — $ — $ 15,201 Project management — 4,650 — — 4,650 Advisory leasing 3,872 — — 3 3,875 Advisory sales 2,523 — — — 2,523 Property management 1,849 — — (19) 1,830 Valuation 765 — — — 765 Commercial mortgage origination (1) 274 — — — 274 Loan servicing (2) 57 — — — 57 Investment management — — 595 — 595 Development services — — 404 — 404 Topic 606 Revenue 9,340 19,851 999 (16) 30,174 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 289 — — — 289 Loan servicing 254 — — — 254 Development services (3) — — 111 — 111 Total Out of Scope of Topic 606 Revenue 543 — 111 — 654 Total Revenue $ 9,883 $ 19,851 $ 1,110 $ (16) $ 30,828 Year Ended December 31, 2021 Advisory Global Real Estate Corporate, Consolidated Topic 606 Revenue: Facilities management $ — $ 14,167 $ — $ — $ 14,167 Project management — 2,932 — — 2,932 Advisory leasing 3,306 — — 2 3,308 Advisory sales 2,790 — — — 2,790 Property management 1,739 — — (22) 1,717 Valuation 733 — — — 733 Commercial mortgage origination (1) 314 — — — 314 Loan servicing (2) 43 — — — 43 Investment management — — 556 — 556 Development services — — 390 — 390 Topic 606 Revenue 8,925 17,099 946 (20) 26,950 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 388 — — — 388 Loan servicing 262 — — — 262 Development services (3) — — 146 — 146 Total Out of Scope of Topic 606 Revenue 650 — 146 — 796 Total Revenue $ 9,575 $ 17,099 $ 1,092 $ (20) $ 27,746 ________________________________________________________________________________________________________________________________________ (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Out of scope revenue for development services represents selling profit from transfers of sales-type leases in the scope of Topic 842. |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summarized Financial Information by Segment | Summarized financial information by segment is as follows (dollars in millions): Year Ended December 31, 2023 2022 2021 Revenue Advisory Services $ 8,499 $ 9,883 $ 9,575 Global Workplace Solutions 22,515 19,851 17,099 Real Estate Investments 952 1,110 1,092 Corporate, other and eliminations (1) (17) (16) (20) Total revenue $ 31,949 $ 30,828 $ 27,746 Depreciation and Amortization Advisory Services $ 289 $ 311 $ 311 Global Workplace Solutions (2) 262 253 159 Real Estate Investments 15 16 27 Corporate, other and eliminations 56 33 29 Total depreciation and amortization $ 622 $ 613 $ 526 Equity Income (Loss) from Unconsolidated Subsidiaries Advisory Services $ 4 $ 15 $ 25 Global Workplace Solutions 1 1 2 Real Estate Investments 216 380 555 Corporate, other and eliminations 27 (167) 37 Total equity income from unconsolidated subsidiaries $ 248 $ 229 $ 619 Segment Operating Profit Advisory Services $ 1,364 $ 1,910 $ 2,063 Global Workplace Solutions 1,006 899 708 Real Estate Investments 239 518 520 Total reportable segment operating profit $ 2,609 $ 3,327 $ 3,291 ________________________________________________________________________________________________________________________________________ (1) Eliminations represent revenue from transactions with other operating segments. See Note 18. (2) Excludes $46.4 million, $52.7 million and $52.2 million for the years ended December 31, 2023, 2022 and 2021, respectively, of amortization on vehicle finance leases utilized in client outsourcing arrangements and amortization of transition costs recorded in Cost of Revenue line item in the accompanying consolidated statement of operations. |
Reconciliation of Segment Operating Profit | Reconciliation of total reportable segment operating profit to net income is as follows (dollars in millions): Year Ended December 31, 2023 2022 2021 Net income attributable to CBRE Group, Inc. $ 986 $ 1,407 $ 1,837 Net income attributable to non-controlling interests 41 17 5 Net income 1,027 1,424 1,842 Adjustments to increase (decrease) net income: Depreciation and amortization 622 613 526 Asset impairments — 59 — Interest expense, net of interest income 149 69 50 Write-off of financing costs on extinguished debt — 2 — Provision for income taxes 250 234 568 Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue (7) (4) 50 Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period — (5) (6) Costs incurred related to legal entity restructuring 13 13 — Integration and other costs related to acquisitions 62 40 44 Costs associated with efficiency and cost-reduction initiatives 159 118 — Provision associated with Telford’s fire safety remediation efforts (1) — 186 — One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired (34) — — Corporate and other loss, including eliminations 368 578 217 Total reportable segment operating profit $ 2,609 $ 3,327 $ 3,291 ________________________________________________________________________________________________________________________________________ (1) See Note 22 for additional information. |
Summary of Geographic Information | Revenue in the table below is allocated based upon the country in which services are performed (dollars in millions): Year Ended December 31, 2023 2022 2021 Revenue United States $ 17,458 $ 17,464 $ 15,700 United Kingdom 4,393 4,084 3,618 All other countries 10,098 9,280 8,428 Total revenue $ 31,949 $ 30,828 $ 27,746 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Transformation Initiative Costs | Year Ended December 31, 2023 Advisory Global Real Estate Corporate Consolidated Employee separation benefits $ 26 $ 32 $ 13 $ 11 $ 82 Lease exit costs 39 1 4 1 45 Professional fees and other 7 19 4 2 32 Subtotal 72 52 21 14 159 Depreciation expense 6 — 3 — 9 Total $ 78 $ 52 $ 24 $ 14 $ 168 Year Ended December 31, 2022 Advisory Global Real Estate Corporate Consolidated Employee separation benefits $ 33 $ 20 $ 9 $ 19 $ 81 Lease exit costs 10 3 — — 13 Professional fees and other 3 5 3 13 24 Subtotal 46 28 12 32 118 Depreciation expense 5 3 — — 8 Total $ 51 $ 31 $ 12 $ 32 $ 126 |
Schedule of Liability Balance Associated with major Cash-based Charges | The following table shows ending liability balances associated with major cash-based charges (dollars in millions): Employee separation benefits Professional fees Balance at January 1, 2022 $ — $ — Expense incurred 82 23 Payments made (45) (13) Balance at December 31, 2022 37 10 Expense incurred 82 32 Payments made (106) (42) Balance at December 31, 2023 $ 13 $ — |
Nature of Operations (Details)
Nature of Operations (Details) | Dec. 31, 2023 employee country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of employees (more than) | employee | 130,000 |
Number of countries in which entity operates (more than) | country | 100 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 106,000,000 | $ 86,600,000 | |
Lease term on real estate under development (in years) | 10 years | ||
Debt agreement term | 11 years | ||
Line of credit debt issuance costs | $ 8,700,000 | 11,100,000 | |
Business promotion and advertising costs | 74,400,000 | 85,100,000 | $ 68,900,000 |
Estimated fair value of mortgage servicing rights | 1,200,000,000 | 1,100,000,000 | 891,000,000 |
Mortgage servicing rights, impairment charges | $ 0 | 0 | |
Ancillary Fee Income, Servicing Financial Asset, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue | ||
Revenue | $ 31,404,000,000 | 30,174,000,000 | 26,950,000,000 |
Prepayment fees/late fees earned from loans servicing | 5,300,000 | 22,700,000 | 41,700,000 |
Ancillary income earned from loans servicing | 108,400,000 | 22,600,000 | 9,800,000 |
Reserve for claims insurance programs | 179,900,000 | 167,900,000 | |
Reserve for claims insurance programs, current | $ 3,600,000 | 3,000,000 | |
Late Fee Income, Servicing Financial Asset, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue | ||
Servicing fees | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Revenue | $ 315,500,000 | $ 309,500,000 | $ 288,000,000 |
Wholly Owned Property | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership interest in property | 100% | ||
Commercial Real Estate | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership interest in property | 0% | ||
Enterprise software development platforms | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life | 3 years | ||
Minimum | Enterprise software development platforms | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life | 3 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life | 10 years | ||
Maximum | Buildings and Improvements | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life | 39 years | ||
Maximum | Land Improvements | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life | 15 years | ||
Maximum | Enterprise software development platforms | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life | 7 years |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Real Estate Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Real estate under development, current (included in other current assets) | $ 0 | $ 193 |
Real estate and other assets held for sale (included in other current assets) | 42 | 97 |
Real estate under development | 300 | 172 |
Real estate held for investment (included in other assets, net) | 179 | 45 |
Total real estate | $ 521 | $ 507 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Loan Servicing Rights Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Beginning balance, mortgage servicing rights | $ 561 | $ 579 | $ 557 |
Mortgage servicing rights recognized | 82 | 146 | 194 |
Mortgage servicing rights sold | 0 | 0 | 0 |
Amortization expense | (144) | (164) | (172) |
Ending balance, mortgage servicing rights | $ 499 | $ 561 | $ 579 |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Assumptions Used in Measuring Fair Value of Servicing Assets (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Weighted average discount rate | 12.96% | 12.87% | 12.62% |
Weighted average conditional prepayment rate | 11.97% | 10.12% | 9.78% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Nov. 01, 2021 USD ($) | Dec. 31, 2023 USD ($) acquisition | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||
Number of businesses acquired | acquisition | 16 | ||||
Revenue | $ 31,949 | $ 30,828 | $ 27,746 | ||
Operating income | 1,117 | 1,512 | 1,637 | ||
Net loss | 1,277 | 1,658 | 2,410 | ||
Direct transaction and integration costs | 62 | $ 40 | 44 | ||
Turner & Townsend | |||||
Business Acquisition [Line Items] | |||||
Noncontrolling interest, noncontrolling owners percent | 40% | ||||
Turner & Townsend | |||||
Business Acquisition [Line Items] | |||||
Cash and deferred consideration | $ 723 | ||||
Equity interest percentage | 60% | ||||
Deferred consideration, gross | $ 591.2 | ||||
Deferred consideration, discount | 96.9 | ||||
Goodwill deductible amount | $ 0 | ||||
Revenue | 194 | ||||
Operating income | 0.5 | ||||
Net loss | (0.5) | ||||
Direct transaction and integration costs | 44.6 | ||||
Noncontrolling interest, fair value calculation, percentage of equity interest used in calculation | 100% | ||||
Increased amortization expense | 81.3 | $ 97.5 | |||
Increased depreciation expense | $ 5.5 | $ 6.6 | |||
Turner & Townsend | Minimum | |||||
Business Acquisition [Line Items] | |||||
Contractual payment date period | 3 years | ||||
Turner & Townsend | Maximum | |||||
Business Acquisition [Line Items] | |||||
Contractual payment date period | 4 years | ||||
Raleigh Joint Venture | |||||
Business Acquisition [Line Items] | |||||
Cash and deferred consideration | $ 311.5 | ||||
Equity interest percentage | 50% |
Acquisitions - Summary of Compa
Acquisitions - Summary of Company’s Allocation of Purchase Price to the Intangible Assets, and Goodwill Acquired (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 01, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 5,129 | $ 4,868 | $ 4,995 | |
Other intangible assets, net | $ 1,105 | |||
Raleigh Joint Venture | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 199 | |||
Purchase price | 281 | |||
Customer relationships | Raleigh Joint Venture | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets, net | $ 75 | |||
Weighted-Average Life (in years) | 10 years | |||
Other intangible assets | Raleigh Joint Venture | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets, net | $ 7 | |||
Weighted-Average Life (in years) | 4 years |
Acquisitions - Schedule of Busi
Acquisitions - Schedule of Business Acquisitions, by Acquisition (Details) - Turner & Townsend $ in Millions | Nov. 01, 2021 USD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 723 |
Deferred consideration | 494 |
Total consideration | $ 1,217 |
Acquisitions - Summary of Exces
Acquisitions - Summary of Excess Purchase Price Over Estimated Fair Value of Net Assets Acquired (Details) - USD ($) $ in Millions | Nov. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||
Excess purchase price over estimated fair value of net assets acquired | $ 5,129 | $ 4,868 | $ 4,995 | |
Turner & Townsend | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 1,217 | |||
Less: Estimated fair value of net assets acquired | 152 | |||
Plus: Estimated fair value of non-controlling interest | 32 | |||
Excess purchase price over estimated fair value of net assets acquired | $ 1,097 |
Acquisitions - Summary of Aggre
Acquisitions - Summary of Aggregate Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) $ in Millions | Nov. 01, 2021 USD ($) |
Assets Acquired: | |
Cash and cash equivalents | $ 44 |
Receivables and other current assets | 266 |
Other intangible assets, net | 1,105 |
Other assets, net | 110 |
Total assets acquired | 1,525 |
Liabilities Assumed: | |
Accounts payable and other liabilities | 277 |
Non-current operating lease liabilities | 31 |
Deferred tax liability | 291 |
Total liabilities assumed | 599 |
Non-controlling Interest Acquired | 774 |
Estimated Fair Value of Net Assets Acquired | $ 152 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Estimate of Trademark Acquired (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Nov. 01, 2021 | |
Business Acquisition [Line Items] | |||
Gross Carrying Amount | $ 379 | $ 372 | |
Turner & Townsend | Customer relationships | |||
Business Acquisition [Line Items] | |||
Amount Assigned at Acquisition Date | $ 754 | ||
Turner & Townsend | Customer relationships | Minimum | |||
Business Acquisition [Line Items] | |||
Amortization Period | 5 years | ||
Turner & Townsend | Customer relationships | Maximum | |||
Business Acquisition [Line Items] | |||
Amortization Period | 11 years | ||
Turner & Townsend | Backlog | |||
Business Acquisition [Line Items] | |||
Amount Assigned at Acquisition Date | 75 | ||
Turner & Townsend | Backlog | Minimum | |||
Business Acquisition [Line Items] | |||
Amortization Period | 2 years | ||
Turner & Townsend | Backlog | Maximum | |||
Business Acquisition [Line Items] | |||
Amortization Period | 4 years | ||
Turner & Townsend | Trademark | |||
Business Acquisition [Line Items] | |||
Trademark, Amount Assigned at Acquisition Date | $ 276 |
Acquisitions - Summary of Pro F
Acquisitions - Summary of Pro Forma Results Prepared for Comparative Purposes (Details) - Turner & Townsend - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Revenue | $ 28,546 | $ 24,716 |
Operating income | 1,706 | 944 |
Net income attributable to CBRE Group, Inc. | $ 1,873 | $ 705 |
Basic income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 5.59 | $ 2.10 |
Weighted average shares outstanding for basic income per share (in shares) | 335,232,840 | 335,196,296 |
Diluted income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in USD per share) | $ 5.51 | $ 2.08 |
Weighted average shares outstanding for diluted income per share (in shares) | 339,717,401 | 338,392,210 |
Warehouse Receivables & Wareh_3
Warehouse Receivables & Warehouse Lines of Credit - Schedule of Warehouse Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |||
Beginning balance | $ 455 | ||
Origination of mortgage loans | 9,905 | $ 13,652 | $ 17,016 |
Gains (premiums on loan sales) | 27 | ||
Proceeds from sale of mortgage loans: | |||
Sale of mortgage loans | (9,687) | ||
Cash collections of premiums on loan sales | (27) | ||
Proceeds from sale of mortgage loans | (9,714) | (14,527) | $ (17,195) |
Net increase in mortgage servicing rights included in warehouse receivables | 2 | ||
Ending balance | $ 675 | $ 455 |
Warehouse Receivables & Wareh_4
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Details) - USD ($) | 12 Months Ended | ||||
Dec. 15, 2023 | Sep. 01, 2023 | Dec. 31, 2023 | Jul. 15, 2023 | Dec. 31, 2022 | |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Carrying Value | $ 666,000,000 | $ 448,000,000 | |||
Revolving credit facility, with interest ranging from 5.03% to 5.23% | 0 | 178,000,000 | |||
Warehouse Agreement Borrowings | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Maximum Facility Size | 3,200,000,000 | 3,600,000,000 | |||
Carrying Value | 666,000,000 | 448,000,000 | |||
Warehouse Agreement Borrowings | JP Morgan | daily floating rate Secured Overnight Financing Rate (SOFR) rate plus 1.50%, with a SOFR adjustment rate of 0.05% | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Maximum Facility Size | 1,335,000,000 | 1,335,000,000 | |||
Carrying Value | $ 613,000,000 | 331,000,000 | |||
Warehouse Agreement Borrowings | JP Morgan | daily floating rate Secured Overnight Financing Rate (SOFR) rate plus 1.50%, with a SOFR adjustment rate of 0.05% | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 1.50% | 1.50% | |||
Warehouse Agreement Borrowings | JP Morgan | daily floating rate Secured Overnight Financing Rate (SOFR) rate plus 1.50%, with a SOFR adjustment rate of 0.05% | Secured Overnight Financing Rate (SOFR) Adjustment | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 0.05% | 0.05% | |||
Warehouse Agreement Borrowings | JP Morgan | daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05% | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Maximum Facility Size | $ 15,000,000 | 15,000,000 | |||
Carrying Value | $ 0 | 0 | |||
Warehouse Agreement Borrowings | JP Morgan | daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05% | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 2.75% | ||||
Warehouse Agreement Borrowings | JP Morgan | daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05% | Secured Overnight Financing Rate (SOFR) Adjustment | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 0.05% | ||||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | daily floating SOFR plus 1.45%, with a SOFR floor of 0.25% | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Maximum Facility Size | $ 650,000,000 | 650,000,000 | |||
Carrying Value | $ 7,000,000 | 0 | |||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | daily floating SOFR plus 1.45%, with a SOFR floor of 0.25% | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 1.45% | ||||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | daily floating SOFR plus 1.45%, with a SOFR floor of 0.25% | Secured Overnight Financing Rate (SOFR) Floor | Minimum | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 0.25% | ||||
Warehouse Agreement Borrowings | T D Bank | daily floating rate SOFR plus 1.30%, with a SOFR adjustment rate of 0.10% | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Maximum Facility Size | $ 600,000,000 | $ 300,000,000 | 800,000,000 | ||
Carrying Value | 28,000,000 | 0 | |||
Revolving credit facility, with interest ranging from 5.03% to 5.23% | $ 300,000,000 | $ 300,000,000 | |||
Warehouse Agreement Borrowings | T D Bank | daily floating rate SOFR plus 1.30%, with a SOFR adjustment rate of 0.10% | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 1.30% | ||||
Warehouse Agreement Borrowings | T D Bank | daily floating rate SOFR plus 1.30%, with a SOFR adjustment rate of 0.10% | Secured Overnight Financing Rate (SOFR) Adjustment | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 0.10% | ||||
Warehouse Agreement Borrowings | Bank Of America | daily floating SOFR rate plus 1.25%, with a SOFR adjustment rate of 0.10% | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Maximum Facility Size | $ 350,000,000 | 350,000,000 | |||
Carrying Value | $ 18,000,000 | 115,000,000 | |||
Warehouse Agreement Borrowings | Bank Of America | daily floating SOFR rate plus 1.25%, with a SOFR adjustment rate of 0.10% | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 1.25% | 1.25% | |||
Warehouse Agreement Borrowings | Bank Of America | daily floating SOFR rate plus 1.25%, with a SOFR adjustment rate of 0.10% | Secured Overnight Financing Rate (SOFR) Adjustment | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 0.10% | 0.10% | |||
Warehouse Agreement Borrowings | Bank Of America | daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Maximum Facility Size | $ 250,000,000 | 250,000,000 | |||
Carrying Value | $ 0 | 0 | |||
Warehouse Agreement Borrowings | Bank Of America | daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 1.25% | 1.25% | |||
Warehouse Agreement Borrowings | Bank Of America | daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% | Secured Overnight Financing Rate (SOFR) Adjustment | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Basis spread on variable rate (percent) | 0.10% | 0.10% | |||
Warehouse Agreement Borrowings | MUFG Union Bank, N.A. (Union Bank) | MUFG Union Bank, N.A. (Union Bank), Pricing | |||||
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |||||
Maximum Facility Size | $ 0 | 200,000,000 | |||
Carrying Value | $ 0 | $ 2,000,000 |
Warehouse Receivables & Wareh_5
Warehouse Receivables & Warehouse Lines of Credit - Narrative (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Warehouse Agreement Borrowings | |
Warehouse Receivables And Warehouse Lines Of Credit [Line Items] | |
Lines of credit principal outstanding | $ 1.2 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Maximum Exposure to Loss (Details) - Non-Consolidated Variable Interest Entities - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 165 | $ 153 |
Co-investment commitments | 58 | 84 |
Maximum exposure to loss | $ 223 | $ 237 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 997,300 | $ 973,600 |
Warehouse receivables | 675,000 | 455,000 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 68,000 | 62,000 |
Equity securities | 41,000 | 34,000 |
Investments in unconsolidated subsidiaries | 645,000 | 621,000 |
Warehouse receivables | 675,000 | 455,000 |
Other assets | 16,000 | 14,000 |
Total assets at fair value | 1,445,000 | 1,186,000 |
Derivative liabilities | 5,000 | |
Total liabilities at fair value | 5,000 | 0 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 12,000 | 6,000 |
Equity securities | 41,000 | 34,000 |
Investments in unconsolidated subsidiaries | 168,000 | 160,000 |
Warehouse receivables | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | 221,000 | 200,000 |
Derivative liabilities | 0 | |
Total liabilities at fair value | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 56,000 | 56,000 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 0 | 0 |
Warehouse receivables | 675,000 | 455,000 |
Other assets | 0 | 0 |
Total assets at fair value | 731,000 | 511,000 |
Derivative liabilities | 5,000 | |
Total liabilities at fair value | 5,000 | |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 477,000 | 461,000 |
Warehouse receivables | 0 | 0 |
Other assets | 16,000 | 14,000 |
Total assets at fair value | 493,000 | 475,000 |
Derivative liabilities | 0 | |
Total liabilities at fair value | 0 | |
Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 12,000 | 6,000 |
Recurring | U.S. treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 12,000 | 6,000 |
Recurring | U.S. treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | U.S. treasury securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Debt securities issued by U.S. federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 11,000 | 9,000 |
Recurring | Debt securities issued by U.S. federal agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Debt securities issued by U.S. federal agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 11,000 | 9,000 |
Recurring | Debt securities issued by U.S. federal agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 44,000 | 44,000 |
Recurring | Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 44,000 | 44,000 |
Recurring | Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 1,000 | 3,000 |
Recurring | Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 0 | 0 |
Recurring | Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | 1,000 | 3,000 |
Recurring | Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available for sale debt securities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 23, 2023 | Mar. 18, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Gain associated with remeasuring our investment in a previously unconsolidated subsidiary to fair value as of the date we acquired the remaining interest | $ 34,000 | $ 0 | $ 0 | |||||
Investments in unconsolidated subsidiaries, fair value | $ 353,000 | 352,300 | 353,000 | |||||
Asset impairments | $ 10,400 | 0 | 58,700 | $ 0 | ||||
Goodwill, impairment loss | 21,900 | 0 | 26,000 | |||||
Non-public entity designated as trading debt security | 10,000 | 10,000 | ||||||
Total long-term debt | 1,520,000 | 2,824,000 | 1,520,000 | |||||
Non-Marketable Equity Investments | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Capital investments | 104,200 | 142,800 | 104,200 | |||||
Senior Euro-Denominated Loans and US Dollar-Denominated Term Loans, Issued July 2023 | Estimated Fair Value | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 424,600 | 746,500 | 424,600 | |||||
Senior Euro-Denominated Loans and US Dollar-Denominated Term Loans, Issued July 2023 | Actual Carrying Value | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 427,800 | 752,000 | 427,800 | |||||
5.950% Senior Notes | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 0 | $ 976,000 | 0 | |||||
Interest rate | 5.95% | 5.95% | ||||||
5.950% Senior Notes | Estimated Fair Value | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | $ 1,000,000 | |||||||
5.950% Senior Notes | Actual Carrying Value | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 973,700 | |||||||
4.875% Senior Notes | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 598,000 | $ 599,000 | 598,000 | |||||
Interest rate | 4.875% | 4.875% | ||||||
4.875% Senior Notes | Estimated Fair Value | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 595,200 | $ 600,200 | 595,200 | |||||
4.875% Senior Notes | Actual Carrying Value | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 596,400 | 597,500 | 596,400 | |||||
2.500% Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Interest rate | 2.50% | |||||||
2.500% Senior Notes | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 494,000 | $ 494,000 | 494,000 | |||||
Interest rate | 2.50% | 2.50% | ||||||
2.500% Senior Notes | Estimated Fair Value | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 396,800 | $ 424,000 | 396,800 | |||||
2.500% Senior Notes | Actual Carrying Value | Senior Notes | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 489,300 | 490,400 | 489,300 | |||||
2.500% Senior Notes | Actual Carrying Value | Notes Payable on Real Estate | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Total long-term debt | 52,700 | 36,300 | 52,700 | |||||
Real Estate Investments | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Goodwill, impairment loss | 21,900 | $ 26,400 | 0 | 26,000 | ||||
Raleigh Joint Venture | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Gain associated with remeasuring our investment in a previously unconsolidated subsidiary to fair value as of the date we acquired the remaining interest | $ 34,100 | |||||||
Percentage of remeasuring investment in previously unconsolidated subsidiary | 50% | |||||||
Equity interest percentage | 50% | |||||||
Fair value of investment in unconsolidated subsidiary at acquisition date | $ 37,400 | |||||||
Recurring | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Financial liabilities fair value | $ 0 | $ 5,000 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Reconciliation for Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investment in Unconsolidated Subsidiaries | ||
Investment in Unconsolidated Subsidiaries | ||
Beginning balance | $ 461 | $ 407 |
Transfer in (out) | (15) | |
Transfer in (out) | 0 | |
Net change in fair value | 16 | (38) |
Purchases / Additions | 0 | 107 |
Ending balance | 477 | 461 |
Other assets | ||
Other assets | ||
Beginning balance | 14 | (11) |
Transfer in (out) | 0 | |
Transfer in (out) | (10) | |
Net change in fair value | 5 | 3 |
Purchases / Additions | 7 | 22 |
Ending balance | $ 16 | $ 14 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) | Dec. 31, 2023 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average, measurement input | 0% |
Other assets, measurement input | 0.25 |
Other assets, weighted average, measurement input | 0% |
Discount rate | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.25 |
Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average, measurement input | 51% |
Volatility | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.69 |
Volatility | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.45 |
Risk free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.04 |
Weighted average, measurement input | 0% |
Discount Yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.25 |
Weighted average, measurement input | 0% |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,483 | $ 2,222 |
Accumulated depreciation and amortization | 1,576.1 | 1,386.3 |
Property and equipment, net | $ 907 | 836 |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years | |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,341 | 1,158 |
Computer hardware and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 2 years | |
Computer hardware and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 658 | 611 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 15 years | |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 298 | 268 |
Furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 186 | $ 185 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 622 | $ 613 | $ 526 |
Asset impairment charges | 0 | 0 | 0 |
Property and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 289.6 | $ 260.8 | $ 244.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Nov. 01, 2021 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) segment acquisition | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 21,900 | $ 0 | $ 26,000 | |||
Number of businesses acquired | acquisition | 16 | |||||
Intangible assets, net | 2,193,000 | $ 2,081,000 | 2,193,000 | |||
Accumulated Amortization | (1,915,700) | (2,178,900) | (1,915,700) | |||
Amortization expense | 321,800 | 348,000 | $ 276,500 | |||
Estimated annual amortization expense, year one | 289,800 | |||||
Estimated annual amortization expense, year two | 244,000 | |||||
Estimated annual amortization expense, year three | 197,400 | |||||
Estimated annual amortization expense, year four | 162,600 | |||||
Estimated annual amortization expense, year five | 142,400 | |||||
Estimated annual amortization expense, thereafter | 512,400 | |||||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Accumulated Amortization | (774,000) | (893,000) | (774,000) | |||
Mortgage servicing rights | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Accumulated Amortization | (469,000) | $ (556,000) | (469,000) | |||
Intangible assets, estimated useful life | 10 years | |||||
Management contracts | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Accumulated Amortization | (146,000) | $ (121,000) | (146,000) | |||
Intangible assets, estimated useful life | 13 years | |||||
Raleigh Joint Venture | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Cash and deferred consideration | $ 311,500 | |||||
Equity interest percentage | 50% | |||||
Turner & Townsend | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Cash and deferred consideration | $ 723,000 | |||||
Equity interest percentage | 60% | |||||
Turner & Townsend | Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, estimated useful life | 20 years | |||||
Global Workplace Solutions | Trademark | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, estimated useful life | 20 years | |||||
Real Estate Investments | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 21,900 | $ 26,400 | $ 0 | 26,000 | ||
Number of businesses acquired | segment | 1 | |||||
Advisory Services | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 0 | 0 | ||||
Number of businesses acquired | segment | 9 | |||||
Global Workplace Solutions | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 0 | $ 0 | ||||
Number of businesses acquired | segment | 6 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Changes in Goodwill by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||||
Goodwill, gross, beginning balance | $ 5,988,000 | $ 6,089,000 | |||
Accumulated impairment losses | $ (1,120,000) | (1,120,000) | (1,120,000) | $ (1,094,000) | |
Goodwill, beginning balance | 4,868,000 | 4,995,000 | |||
Purchase accounting entries related to acquisitions | 187,000 | 80,000 | |||
Impairment | (21,900) | 0 | (26,000) | ||
Foreign exchange movement | 74,000 | (181,000) | |||
Goodwill, gross, ending balance | 5,988,000 | 6,249,000 | 5,988,000 | ||
Goodwill, ending balance | 4,868,000 | 5,129,000 | 4,868,000 | ||
Advisory Services | |||||
Goodwill [Roll Forward] | |||||
Goodwill, gross, beginning balance | 3,283,000 | 3,299,000 | |||
Accumulated impairment losses | (762,000) | (762,000) | (762,000) | (762,000) | |
Goodwill, beginning balance | 2,521,000 | 2,537,000 | |||
Purchase accounting entries related to acquisitions | 91,000 | 20,000 | |||
Impairment | 0 | 0 | |||
Foreign exchange movement | 9,000 | (36,000) | |||
Goodwill, gross, ending balance | 3,283,000 | 3,383,000 | 3,283,000 | ||
Goodwill, ending balance | 2,521,000 | 2,621,000 | 2,521,000 | ||
Global Workplace Solutions | |||||
Goodwill [Roll Forward] | |||||
Goodwill, gross, beginning balance | 2,110,000 | 2,174,000 | |||
Accumulated impairment losses | (175,000) | (175,000) | (175,000) | (175,000) | |
Goodwill, beginning balance | 1,935,000 | 1,999,000 | |||
Purchase accounting entries related to acquisitions | 93,000 | 60,000 | |||
Impairment | 0 | 0 | |||
Foreign exchange movement | 57,000 | (124,000) | |||
Goodwill, gross, ending balance | 2,110,000 | 2,260,000 | 2,110,000 | ||
Goodwill, ending balance | 1,935,000 | 2,085,000 | 1,935,000 | ||
Real Estate Investments | |||||
Goodwill [Roll Forward] | |||||
Goodwill, gross, beginning balance | 595,000 | 616,000 | |||
Accumulated impairment losses | (183,000) | (183,000) | (183,000) | $ (157,000) | |
Goodwill, beginning balance | 412,000 | 459,000 | |||
Purchase accounting entries related to acquisitions | 3,000 | 0 | |||
Impairment | (21,900) | $ (26,400) | 0 | (26,000) | |
Foreign exchange movement | 8,000 | (21,000) | |||
Goodwill, gross, ending balance | 595,000 | 606,000 | 595,000 | ||
Goodwill, ending balance | $ 412,000 | $ 423,000 | $ 412,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Unamortizable intangible assets: | ||
Indefinite-Lived Intangible Assets, Net Carrying Value | $ 379 | $ 372 |
Amortizable intangible assets: | ||
Gross Carrying Amount | 3,881 | 3,737 |
Accumulated Amortization | (2,178.9) | (1,915.7) |
Gross Carrying Amount | 379 | 372 |
Intangible Assets, Gross (Excluding Goodwill) | 4,260 | 4,109 |
Gross Carrying Amount, Total intangible assets | 4,260 | 4,109 |
Management contracts | ||
Unamortizable intangible assets: | ||
Indefinite-Lived Intangible Assets, Net Carrying Value | 62 | 60 |
Amortizable intangible assets: | ||
Gross Carrying Amount | 62 | 60 |
Trademark | ||
Unamortizable intangible assets: | ||
Indefinite-Lived Intangible Assets, Net Carrying Value | 317 | 312 |
Amortizable intangible assets: | ||
Gross Carrying Amount | 317 | 312 |
Customer relationships | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 1,727 | 1,637 |
Accumulated Amortization | (893) | (774) |
Mortgage servicing rights | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 1,055 | 1,030 |
Accumulated Amortization | (556) | (469) |
Trademarks/Trade names | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 315 | 305 |
Accumulated Amortization | (147) | (129) |
Management contracts | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 122 | 149 |
Accumulated Amortization | (121) | (146) |
Covenant not to compete | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 4 | 4 |
Accumulated Amortization | (1) | (1) |
Other | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 658 | 612 |
Accumulated Amortization | $ (461) | $ (397) |
Investments In Unconsolidated_3
Investments In Unconsolidated Subsidiaries - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenue | $ 31,949 | $ 30,828 | $ 27,746 |
Additional investment | $ 0 | 101 | 0 |
Ownership Percentage | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 1% | ||
Ownership Percentage | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 50% | ||
Investment management | Real Estate Investments | Related Party | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue | $ 278.8 | 268.9 | 213.5 |
Related party receivable | 83.2 | 73.2 | |
Development and Construction Management Revenues | Related Party | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue | 165 | 147.8 | $ 104.3 |
Related party receivable | $ 30.4 | $ 21.1 |
Investments in Unconsolidated_4
Investments in Unconsolidated Subsidiaries - Equity Method Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 1,374 | $ 1,318 | |
Real Estate Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | 661 | 623 | |
Altus Power | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 224 | $ 220 | |
Altus Power | Common Class A | |||
Schedule of Equity Method Investments [Line Items] | |||
Common stock shares (in shares) | 24,556,012 | 24,554,201 | |
Ownership percentage | 15.57% | 15.57% | |
Altus Power | Parent [Member] | Common Class A | |||
Schedule of Equity Method Investments [Line Items] | |||
Shares converted to Class A common stock (in shares) | 1,811 | ||
Class A common stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 168 | $ 160 | |
Shares converted to Class A common stock (in shares) | 2,011 | ||
Alignment shares | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | 56 | 60 | |
Alignment shares converted (in shares) | 201,250 | ||
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 489 | $ 475 |
Investments in Unconsolidated_5
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Balance Sheet Information of Equity Method Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 9,666 | $ 8,529 |
Total Assets | 22,548 | 20,513 |
Current liabilities | 8,243 | 8,242 |
Total Liabilities | 13,481 | 11,907 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 8,884 | 9,044 |
Non-current assets | 44,116 | 45,616 |
Total Assets | 53,000 | 54,660 |
Current liabilities | 1,905 | 2,346 |
Non-current liabilities | 17,288 | 15,858 |
Total Liabilities | 19,193 | 18,204 |
Non-controlling interests | $ 1,065 | $ 926 |
Investments in Unconsolidated_6
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Statements of Operation Information of Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenue | $ 31,949 | $ 30,828 | $ 27,746 |
Net income | 1,027 | 1,424 | 1,842 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue | 7,178 | 2,783 | 2,681 |
Operating income | 4,984 | 1,215 | 1,371 |
Net income | $ 760 | $ 4,102 | $ 3,260 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt and Short-Term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jun. 23, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 18, 2021 |
Long-Term Debt | |||||
Total long-term debt | $ 2,824 | $ 1,520 | |||
Less: current maturities of long-term debt | 9 | 428 | |||
Less: unamortized debt issuance costs | 11 | 6 | |||
Total long-term debt, net of current maturities | 2,804 | 1,086 | |||
Short-Term Borrowings | |||||
Warehouse lines of credit, with interest ranging from 5.51% to 8.15%, due in 2024 | 666 | 448 | |||
Revolving credit facility, with interest ranging from 5.03% to 5.23% | 0 | 178 | |||
Other | 16 | 43 | |||
Total short-term borrowings | 682.4 | 668.8 | |||
Warehouse Agreement Borrowings | |||||
Short-Term Borrowings | |||||
Warehouse lines of credit, with interest ranging from 5.51% to 8.15%, due in 2024 | 666 | 448 | |||
Revolving credit facility | |||||
Short-Term Borrowings | |||||
Revolving credit facility, with interest ranging from 5.03% to 5.23% | $ 0 | 178 | |||
2.500% Senior Notes | |||||
Short-Term Borrowings | |||||
Interest rate | 2.50% | ||||
Minimum | Warehouse Agreement Borrowings | |||||
Short-Term Borrowings | |||||
Interest rate | 5.51% | ||||
Minimum | Revolving credit facility | |||||
Short-Term Borrowings | |||||
Interest rate | 5.03% | ||||
Maximum | Warehouse Agreement Borrowings | |||||
Short-Term Borrowings | |||||
Interest rate | 8.15% | ||||
Maximum | Revolving credit facility | |||||
Short-Term Borrowings | |||||
Interest rate | 5.23% | ||||
Senior term loans | |||||
Long-Term Debt | |||||
Total long-term debt | $ 755 | 428 | |||
Senior Notes | 5.950% Senior Notes | |||||
Long-Term Debt | |||||
Total long-term debt | $ 976 | 0 | |||
Short-Term Borrowings | |||||
Interest rate | 5.95% | 5.95% | |||
Senior Notes | 4.875% Senior Notes | |||||
Long-Term Debt | |||||
Total long-term debt | $ 599 | 598 | |||
Short-Term Borrowings | |||||
Interest rate | 4.875% | 4.875% | |||
Senior Notes | 2.500% Senior Notes | |||||
Long-Term Debt | |||||
Total long-term debt | $ 494 | $ 494 | |||
Short-Term Borrowings | |||||
Interest rate | 2.50% | 2.50% |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Future Aggregate Maturities of Gross Debt Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Future annual aggregate maturities, 2022 | $ 692 |
Future annual aggregate maturities, 2023 | 38 |
Future annual aggregate maturities, 2024 | 638 |
Future annual aggregate maturities, 2025 | 38 |
Future annual aggregate maturities, 2026 | 632 |
Future annual aggregate maturities, thereafter | $ 1,500 |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings - Long-Term Debt Narrative (Details) | 12 Months Ended | |||||||||
Jul. 10, 2023 USD ($) | Jun. 23, 2023 USD ($) | Aug. 05, 2022 USD ($) | Mar. 18, 2021 | Aug. 13, 2015 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Jul. 10, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||||||
Debt agreement term | 11 years | |||||||||
Total long-term debt | $ 2,824,000,000 | $ 1,520,000,000 | ||||||||
2023 Credit Agreement with Wells Fargo | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 1,000% | 1,000% | ||||||||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 2% | |||||||||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 4.25% | |||||||||
Maximum leverage ratio during first four quarter that qualified acquisition is consummated | 4.75% | |||||||||
2023 Credit Agreement with Wells Fargo | Euro Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total long-term debt | 404,000,000 | |||||||||
2023 Credit Agreement with Wells Fargo | U.S. Dollar Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total long-term debt | $ 348,000,000 | |||||||||
2023 Credit Agreement with Wells Fargo | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 100% | |||||||||
2023 Credit Agreement with Wells Fargo | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. Dollar Term Loan | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 1.35% | 1.35% | ||||||||
2023 Credit Agreement with Wells Fargo | EURIBOR | Euro Term Loan Facility | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 1.25% | 1.25% | ||||||||
2023 Credit Agreement with Wells Fargo | Fed Funds Effective Rate Overnight Index Swap Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 500% | |||||||||
2023 Credit Agreement with Wells Fargo | Unsecured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt agreement term | 5 years | |||||||||
2023 Credit Agreement with Wells Fargo, Tranche A Euro Denominated Term Loan | Unsecured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | € | € 366,500,000 | |||||||||
2023 Credit Agreement with Wells Fargo, Tranche A, US Dollar Denominated Term Loan | Unsecured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 350,000,000 | |||||||||
2021 Credit Agreement | Euro Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | € | € 400,000,000 | |||||||||
2021 Credit Agreement | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt agreement term | 5 years | |||||||||
Amounts available to borrow under credit agreement | $ 3,150,000,000 | |||||||||
Revolving Credit Facility, Maturity Date August 5, 2027 | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt agreement term | 5 years | |||||||||
Interest rate | 1,000% | |||||||||
Amounts available to borrow under credit agreement | $ 3,500,000,000 | |||||||||
Revolving Credit Facility, Maturity Date August 5, 2027 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 1% | |||||||||
Revolving Credit Facility, Maturity Date August 5, 2027 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving credit facility | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 0.63% | |||||||||
Revolving Credit Facility, Maturity Date August 5, 2027 | Fed Funds Effective Rate Overnight Index Swap Rate | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 500% | |||||||||
5.950% Senior Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||||
Interest rate | 5.95% | 5.95% | 5.95% | |||||||
Total long-term debt | $ 976,000,000 | 0 | ||||||||
Percentage of face value | 98.174% | |||||||||
Senior notes | $ 973,700,000 | |||||||||
5.950% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100% | |||||||||
5.950% Senior Notes | Senior Notes | US Treasury (UST) Interest Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Semi-annual basis adjustment (basis points) | 0.40% | |||||||||
2.500% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 2.50% | |||||||||
2.500% Senior Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | 500,000,000 | |||||||||
Interest rate | 2.50% | 2.50% | 2.50% | |||||||
Total long-term debt | $ 494,000,000 | 494,000,000 | ||||||||
Percentage of face value | 98.451% | |||||||||
Adjustment to treasury rate | 0.20% | |||||||||
Debt issuance cost | $ 490,400,000 | 489,300,000 | ||||||||
2.500% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100% | |||||||||
4.875% Senior Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 600,000,000 | |||||||||
Interest rate | 4.875% | 4.875% | 4.875% | |||||||
Total long-term debt | $ 599,000,000 | 598,000,000 | ||||||||
Redemption price percentage | 99.24% | |||||||||
Percentage of notes available for redemption | 100% | |||||||||
Redemption price percentage, following change in control | 101% | |||||||||
Senior notes | $ 597,500,000 | $ 596,400,000 |
Long-Term Debt and Short-Term_6
Long-Term Debt and Short-Term Borrowings - Short-Term Debt Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Short-term borrowings | $ 682.4 | $ 668.8 |
Short-term debt, weighted average interest rate | 6.80% | 5.60% |
Long-Term Debt and Short-Term_7
Long-Term Debt and Short-Term Borrowings - Revolving Credit Facility Narrative (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||
Jul. 10, 2023 | Aug. 05, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 GBP (£) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Debt agreement term | 11 years | ||||
Letters of credit outstanding amount | $ 236.9 | ||||
Revolving credit facility, with interest ranging from 5.03% to 5.23% | 0 | $ 178 | |||
Revolving Credit Facility, Maturity Date August 5, 2027 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 2% | ||||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 4.25% | ||||
Maximum leverage ratio during first four quarter that qualified acquisition is consummated | 4.75% | ||||
2023 Credit Agreement with Wells Fargo | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1,000% | ||||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 2% | ||||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 4.25% | ||||
Maximum leverage ratio during first four quarter that qualified acquisition is consummated | 4.75% | ||||
2023 Credit Agreement with Wells Fargo | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 100% | ||||
2023 Credit Agreement with Wells Fargo | Fed Funds Effective Rate Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 500% | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date August 5, 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt agreement term | 5 years | ||||
Amounts available to borrow under credit agreement | $ 3,500 | ||||
Interest rate | 1,000% | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date August 5, 2027 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding amount | $ 300 | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date August 5, 2027 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 1% | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date August 5, 2027 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 0.63% | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date August 5, 2027 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 1.10% | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date August 5, 2027 | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 0% | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date August 5, 2027 | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 0.10% | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date August 5, 2027 | Fed Funds Effective Rate Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 500% | ||||
Revolving credit facility | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility outstanding | 0 | ||||
Revolving credit facility | 2019 Credit Agreement | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding amount | 0 | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date March 31, 2027 | Turner & Townsend | |||||
Debt Instrument [Line Items] | |||||
Amounts available to borrow under credit agreement | £ | £ 120 | ||||
Increase limit | £ | 20 | ||||
Revolving credit facility | Revolving Credit Facility, Maturity Date January 31, 2024 | Turner & Townsend | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, with interest ranging from 5.03% to 5.23% | $ 10.2 | £ 8 | |||
Revolving credit facility | Revolving Credit Facility, Maturity Date January 31, 2024 | SONIA Overnight Rate | Turner & Townsend | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (percent) | 0.75% |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Operating | $ 1,030 | $ 1,033 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Financing | $ 210 | $ 91 |
Total leased assets | 1,240 | 1,124 |
Current: | ||
Operating | $ 242 | $ 230 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Financing | $ 36 | $ 33 |
Non-current: | ||
Operating | $ 1,089 | $ 1,080 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Financing | $ 72 | $ 58 |
Total lease liabilities | $ 1,439 | $ 1,401 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease Cost [Line Items] | ||
Operating lease cost | $ 220 | $ 196 |
Amortization of right-to-use assets | 36 | 31 |
Interest on lease liabilities | 1 | 1 |
Variable lease cost | 115 | 79 |
Sublease income | (5) | (4) |
Total lease cost | 367 | 303 |
Cost of revenue | ||
Lease Cost [Line Items] | ||
Amortization of right-to-use assets | 25.2 | 26.4 |
Variable lease cost | 24 | 23.6 |
Depreciation and amortization | ||
Lease Cost [Line Items] | ||
Amortization of right-to-use assets | 10.8 | 4.2 |
Operating administration and other costs | ||
Lease Cost [Line Items] | ||
Variable lease cost | $ 64.1 | $ 55.6 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Weighted-average remaining lease term: | ||
Operating leases (in years) | 41 years | 42 years |
Finance leases (in years) | 71 years | 75 years |
Weighted-average discount rate: | ||
Operating leases | 4.80% | 4.50% |
Finance leases | 5.20% | 5.10% |
Lease term on real estate under development (in years) | 10 years | |
Land leases excluded from weighted average remaining lease term, term of lease (in years) | 999 years | |
90+ year lease | ||
Weighted-average discount rate: | ||
Lease term on real estate under development (in years) | 90 years | |
Leases excluding assets under construction | ||
Weighted-average remaining lease term: | ||
Operating leases (in years) | 7 years | |
Finance leases (in years) | 3 years | 3 years |
Weighted-average discount rate: | ||
Operating leases | 3.50% | 3% |
Finance leases | 2.50% | 1.70% |
Real estate under development | ||
Weighted-average discount rate: | ||
Finance lease term on real estate under development (in years) | 99 years | 99 years |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 239 |
2025 | 226 |
2026 | 210 |
2027 | 161 |
2028 | 127 |
Thereafter | 1,241 |
Total remaining lease payments at December 31, 2023 | 2,204 |
Less: Interest | 873 |
Present value of lease liabilities at December 31, 2023 | 1,331 |
Financing Leases | |
2024 | 38 |
2025 | 27 |
2026 | 19 |
2027 | 11 |
2028 | 4 |
Thereafter | 218 |
Total remaining lease payments at December 31, 2023 | 317 |
Less: Interest | 209 |
Present value of lease liabilities at December 31, 2023 | $ 108 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 237 | $ 237 |
Operating cash outflows from financing leases | 3 | 2 |
Financing cash outflows from financing leases | 38 | 38 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 154 | 164 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 54 | 31 |
Other non-cash increases in operating lease right-of-use assets | 6 | 32 |
Other non-cash decreases in finance lease right-of-use assets | $ 100 | $ 6 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | $ 41,500 | |
Letters of credit outstanding | 236.9 | |
Accrued loan loss | 67.4 | $ 65.1 |
Assets available for recourse | 651.7 | |
Guarantees total | $ 206.2 | |
Co-investments typically range | 2% | |
Commitments to investment in future real estate investment | $ 180.4 | |
Maximum Future Commitments Equity In Real Estate Investment, Percent | 0.50 | |
Commitment to investment in consolidated projects | $ 230.1 | |
Commitments to investment in unconsolidated real estate subsidiary | 73.9 | |
Warehouse Receivable | ||
Loss Contingencies [Line Items] | ||
Warehouse receivables | 215.1 | |
Funded loans subject to loss sharing arrangements | ||
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | 38,000 | |
Letters of credit outstanding | 140 | 113 |
SBL Program | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 5 | $ 5 |
Percentage of maximum original principal amount loan loss | 10% | |
Funded loans not subject to loss sharing arrangements | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 145 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Incentive Plans Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
May 17, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 27, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Mar. 01, 2019 | Dec. 31, 2017 | |
Time Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Time-vesting awards, portion to be vested per year | 25% | ||||||||
2017 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted in period under equity incentive plan (in shares) | 189,499 | ||||||||
Shares cancelled under equity incentive plan (in shares) | 917,442 | ||||||||
Shares withheld for payment of taxes (in shares) | 1,078,267 | ||||||||
2019 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
2019 Equity Incentive Plan | Class A common stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 19,406,210 | 7,700,000 | 9,900,000 | ||||||
Stock Options | 2019 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 9,040,592 | ||||||||
RSUs | Performance Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
RSUs | Time Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 1,216,384 | 1,154,113 | 969,299 | ||||||
Percentage of target restricted stock unit | 33.30% | 33.30% | |||||||
RSUs | Total Shareholder Return | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target restricted stock unit | 33.30% | ||||||||
Measurement period | 6 years | ||||||||
Number of trading days required for purposes of measuring shareholder return based on average closing price of common stock immediately preceding grant date | 60 days | ||||||||
RSUs | Earnings Per Share Performance | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target restricted stock unit | 33.30% | 33.30% | |||||||
Measurement period | 6 years | ||||||||
RSUs | Segment Performance | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target restricted stock unit | 33.30% | ||||||||
RSUs | Maximum | Performance Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 896,742 | 1,223,849 | 734,352 | ||||||
RSUs | 2017 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares reserved for future issuance (in shares) | 1,605,479 | ||||||||
RSUs | 2017 Equity Incentive Plan | Time Based Vesting | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 0 | 939,605 | |||||||
RSUs | 2017 Equity Incentive Plan | Maximum | Performance Based Vesting | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 146,080 | 3,288,618 | |||||||
RSUs | 2019 Equity Incentive Plan | Time Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target restricted stock unit | 33.30% | ||||||||
RSUs | 2019 Equity Incentive Plan | Time Based Vesting | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 25,347 | 465,956 | |||||||
RSUs | 2019 Equity Incentive Plan | Total Shareholder Return | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target restricted stock unit | 33.30% | ||||||||
Measurement period | 5 years | ||||||||
Number of trading days required for purposes of measuring shareholder return based on average closing price of common stock immediately preceding grant date | 60 days | ||||||||
RSUs | 2019 Equity Incentive Plan | Earnings Per Share Performance | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of target restricted stock unit | 33.30% | ||||||||
Measurement period | 5 years | ||||||||
RSUs | 2019 Equity Incentive Plan | Maximum | Performance Based Vesting | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 88,715 | 1,630,846 | |||||||
Non-Vested Stock Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense related to non-vested awards | $ 96.2 | $ 160.3 | $ 184.9 | ||||||
Unrecognized estimated compensation cost | $ 181.3 | ||||||||
Weighted average period of recognition | 2 years 7 months 6 days |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Fair Value of TSR Performance RSUs (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of common stock | 35.55% | |
Expected dividend yield | 0% | 0% |
Risk-free interest rate | 1.84% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of common stock | 42.71% | |
Risk-free interest rate | 0.25% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of common stock | 45.80% | |
Risk-free interest rate | 0.28% |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Non-Vested Stock Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares/Units | |||
Beginning balance (in shares) | 7,413,079 | 6,848,791 | 6,683,412 |
Ending balance (in shares) | 5,220,579 | 7,413,079 | 6,848,791 |
Weighted Average Market Value Per Share | |||
Beginning balance (in USD per share) | $ 73.67 | $ 64.10 | $ 47.99 |
Ending balance (in USD per share) | $ 86.17 | $ 73.67 | $ 64.10 |
Non-Vested Stock Awards | |||
Shares/Units | |||
Granted (in shares) | 1,664,755 | 1,796,196 | 2,531,959 |
Performance award achievement adjustments (in shares) | 365,965 | 409,851 | (189,930) |
Vested (in shares) | (4,001,675) | (1,372,123) | (1,883,652) |
Forfeited (in shares) | (221,545) | (269,636) | (292,998) |
Weighted Average Market Value Per Share | |||
Granted (in USD per share) | $ 78.46 | $ 95.01 | $ 92.16 |
Performance award achievement adjustments (in USD per share) | 81.14 | 77.99 | 49.76 |
Vested (in USD per share) | 59.62 | 57.74 | 46.34 |
Forfeited (in USD per share) | $ 81.14 | $ 79.33 | $ 55.80 |
Employee Benefit Plans - Bonuse
Employee Benefit Plans - Bonuses Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Defined benefit plan | $ 696.6 | $ 843.1 | $ 871.7 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Plan Narrative (Details) - USD ($) shares in Millions | 12 Months Ended | |||
Oct. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Minimum annual employee contribution, percent | 1% | |||
Maximum annual employee contribution, percent | 75% | |||
Company contribution percent per year employed | 33% | |||
Defined contribution plan, expenses recognized | $ 107,800,000 | $ 91,100,000 | $ 72,400,000 | |
Percent of 401(k) that can be invested in common stock | 25% | |||
Number of share held as investment under 401(k) Plan | 1 | |||
Annual Base Salary of Less than $100,000 | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percent of annual compensation match percentage | 67% | 67% | 67% | |
Percent of annual compensation to be matched | 6% | 6% | 6% | |
Defined benefit plan, annual compensation expense maximum | $ 100,000 | $ 100,000 | ||
Annual Base Salary of $100,000 or Up to $150,000 | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percent of annual compensation match percentage | 50% | 50% | ||
Percent of annual compensation to be matched | 6% | 6% | ||
Defined benefit plan, annual compensation expense maximum | $ 6,000 | $ 6,000 | $ 6,000 | |
Defined benefit plan, annual compensation expense minimum | $ 100,000,000 | $ 100,000,000 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Plans Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) pensionPlan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined benefit plans | pensionPlan | 2 | ||
Fair value of plan assets | $ 295.5 | $ 270.3 | |
Benefit obligation | 374.4 | 339.9 | |
Items not yet recognized as net periodic pension cost (benefit) | 131.8 | 127.7 | |
Loss on plan obligations | 159.3 | ||
Net gains due to plan experience | 7.3 | (19.1) | |
Accumulated benefit obligations exceed plan assets | 361.4 | 329.5 | |
Accumulated benefit obligations and the fair value of plan assets | 295.5 | 270.3 | |
Net periodic pension cost | 19.8 | (3.4) | $ (8.9) |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 243.2 | 221.1 | |
Benefit obligation | 267.4 | 247.1 | |
Unfunded status of plan | $ (24.3) | $ (26) |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plans Located within Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 295.5 | $ 270.3 |
Benefit obligation | 374.4 | 339.9 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 243.2 | 221.1 |
Benefit obligation | 267.4 | 247.1 |
Pension Plan | Other assets, net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 41 | 56 |
Pension Plan | Other liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | $ 85 | $ 80 |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | $ 49 |
2024 | 47 |
2025 | 48 |
2026 | 49 |
2027 | 51 |
Thereafter | $ 274 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 665 | $ 1,275 | $ 1,684 |
Foreign | 612 | 383 | 726 |
Income before provision for income taxes | $ 1,277 | $ 1,658 | $ 2,410 |
Income Taxes - Tax Provision (B
Income Taxes - Tax Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision: | |||
Federal | $ 98 | $ 338 | $ 275 |
State | 31 | 99 | 115 |
Foreign | 242 | 208 | 239 |
Total current provision | 371 | 645 | 629 |
Deferred provision: | |||
Federal | (4) | (249) | 35 |
State | 4 | (56) | (5) |
Foreign | (121) | (106) | (91) |
Total deferred provision | (121) | (411) | (61) |
Total provision for income taxes | $ 250 | $ 234 | $ 568 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Pre-Tax Income (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21% | 21% | 21% |
Foreign rate differential | (1.00%) | 0% | 0% |
State taxes, net of federal benefit | 2% | 3% | 4% |
Nontaxable or nondeductible items | 3% | 2% | 0% |
Reserves for uncertain tax positions | 0% | 1% | 1% |
Tax credits | (5.00%) | (2.00%) | (1.00%) |
Outside basis differences recognized as a result of a legal entity restructuring | 0% | (10.00%) | 0% |
Other | (1.00%) | (1.00%) | (1.00%) |
Effective tax rate | 19% | 14% | 24% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 13, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax [Line Items] | ||||
Tax benefit attributable to outside basis differences recognized as a result of legal entity restructuring | $ (165.8) | |||
Deferred tax assets before valuation allowances for state NOLs | $ 471.9 | |||
Foreign tax credit | 242 | 208 | $ 239 | |
Deferred tax assets that do not satisfy realization criteria | 356.5 | 255 | ||
Increase (decrease) in valuation allowance | (101.8) | |||
Undistributed earnings of foreign subsidiaries | 3,800 | |||
Deferred tax liabilities, undistributed foreign earnings | 18.6 | |||
Unrecognized tax benefits | 413.5 | 391.4 | $ 192 | |
Unrecognized tax benefits that would affect our effective tax rate | 283.9 | |||
Unrecognized tax benefits increase | 22.1 | |||
Increase resulting from legal entity reorganizations | 28.8 | |||
Reductions as a result of lapse of statute of limitations | 6.7 | 2 | ||
Additional interest and penalties accrued | 3.5 | $ (0.5) | ||
Liability for interest and penalties | 6.8 | |||
Federal | Internal Revenue Service (IRS) | Subsequent Event | ||||
Income Tax [Line Items] | ||||
Closure of IRS audit, expected impact | $ 0 | |||
Capital Loss Carryforward | ||||
Income Tax [Line Items] | ||||
Current Federal, State and Local, Tax Expense | 24.1 | |||
Foreign tax credit | 9.8 | |||
Current Year Activities | ||||
Income Tax [Line Items] | ||||
Increase (decrease) in valuation allowance | 96.7 | |||
Change In Forecasted Earnings in Foreign Jurisdictions | ||||
Income Tax [Line Items] | ||||
Increase (decrease) in valuation allowance | (6) | |||
Foreign Currency Translation and Tax Rate Changes | ||||
Income Tax [Line Items] | ||||
Increase (decrease) in valuation allowance | $ (11.1) |
Income Taxes - Temporary Tax Ef
Income Taxes - Temporary Tax Effects (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Tax losses and tax credits | $ 506 | $ 369 |
Operating lease liabilities | 343 | 317 |
Bonus and deferred compensation | 334 | 372 |
Bad debt and other reserves | 117 | 103 |
Pension obligation | 0 | 1 |
All other | 188 | 64 |
Deferred tax assets, before valuation allowance | 1,488 | 1,226 |
Less: Valuation allowance | (356.5) | (255) |
Deferred tax assets | 1,131 | 971 |
Liabilities: | ||
Property and equipment | 55 | 21 |
Unconsolidated affiliates and partnerships | (115) | (93) |
Capitalized costs and intangibles | (531) | (562) |
Operating lease assets | (286) | (273) |
All other | (38) | (38) |
Deferred tax liabilities | (1,025) | (987) |
Net deferred tax assets/(liabilities) | $ 106 | |
Net deferred tax assets/(liabilities) | $ 16 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance, unrecognized tax benefits | $ (391.4) | $ (192) |
Gross increases - tax positions in prior period | (12) | (42) |
Gross decreases - tax positions in prior period | 1 | 1 |
Gross increases - current-period tax positions | (18) | (167) |
Decreases relating to settlements | 0 | 1 |
Reductions as a result of lapse of statute of limitations | 6.7 | 2 |
Foreign exchange movement | 0 | 6 |
Ending balance, unrecognized tax benefits | $ (413.5) | $ (391.4) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 18, 2022 | Nov. 19, 2021 | |
Equity [Line Items] | |||||
Preferred stock authorized (in shares) | 25,000,000 | ||||
Preferred stock issued (in shares) | 0 | 0 | |||
Class A common stock, shares authorized (in shares) | 525,000,000 | 525,000,000 | |||
Class A common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | |||
Class A common stock issued (in shares) | 304,889,140 | 311,014,160 | |||
Class A common stock outstanding (in shares) | 304,889,140 | 311,014,160 | |||
Shares repurchased during the period, value | $ 649 | $ 1,862 | $ 373 | ||
Capacity remaining under current stock repurchase program | $ 1,500 | ||||
Class A common stock | |||||
Equity [Line Items] | |||||
Class A common stock, shares authorized (in shares) | 525,000,000 | 525,000,000 | |||
Class A common stock, par value (in USD per share) | $ 0.01 | ||||
Class A common stock issued (in shares) | 304,889,140 | 311,014,160 | |||
Class A common stock outstanding (in shares) | 304,889,140 | 311,014,160 | |||
Repurchase of common stock (in shares) | 7,867,348 | 22,890,606 | 3,954,369 | ||
Class A common stock | November 2021 Repurchase Program | |||||
Equity [Line Items] | |||||
Authorized share repurchase amount | $ 4,000 | $ 2,000 | |||
Stock repurchase, term | 5 years | ||||
Authorized share additional repurchase amount | $ 2,000 | ||||
Repurchase of common stock (in shares) | 7,867,348 | 22,890,606 | 3,954,369 | ||
Average price per share (in USD per share) | $ 82.59 | ||||
Shares repurchased during the period, value | $ 649.8 | $ 1,900 | $ 372.9 |
Income Per Share Information -
Income Per Share Information - Calculation of Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic Income Per Share | |||
Net income attributable to CBRE Group, Inc. stockholders | $ 986 | $ 1,407 | $ 1,837 |
Weighted average shares outstanding for basic income per share (in shares) | 308,430,080 | 322,813,345 | 335,232,840 |
Basic income per share attributable to CBRE Group, Inc. shareholders (in USD per share) | $ 3.20 | $ 4.36 | $ 5.48 |
Diluted Income Per Share | |||
Net income attributable to CBRE Group, Inc. stockholders | $ 986 | $ 1,407 | $ 1,837 |
Weighted average shares outstanding for basic income per share (in shares) | 308,430,080 | 322,813,345 | 335,232,840 |
Dilutive effect of contingently issuable shares (in shares) | 4,120,862 | 4,882,770 | 4,484,561 |
Weighted average shares outstanding for diluted income per share (in shares) | 312,550,942 | 327,696,115 | 339,717,401 |
Diluted income per share attributable to CBRE Group, Inc. shareholders (in USD per share) | $ 3.15 | $ 4.29 | $ 5.41 |
Income Per Share Information _2
Income Per Share Information - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contingently Issuable Shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded in computation of diluted income per share (in shares) | 338,711 | 1,312,197 | 186,241 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | $ 31,404 | $ 30,174 | $ 26,950 |
Total Out of Scope of Topic 606 Revenue | 545 | 654 | 796 |
Total Revenue | 31,949 | 30,828 | 27,746 |
Corporate And Reconciling Items | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | (17) | (16) | (20) |
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 |
Total Revenue | (17) | (16) | (20) |
Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 7,969 | 9,340 | 8,925 |
Total Out of Scope of Topic 606 Revenue | 530 | 543 | 650 |
Total Revenue | 8,499 | 9,883 | 9,575 |
Global Workplace Solutions | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 22,515 | 19,851 | 17,099 |
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 |
Total Revenue | 22,515 | 19,851 | 17,099 |
Real Estate Investments | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 937 | 999 | 946 |
Total Out of Scope of Topic 606 Revenue | 15 | 111 | 146 |
Total Revenue | 952 | 1,110 | 1,092 |
Facilities management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 15,205 | 15,201 | 14,167 |
Facilities management | Global Workplace Solutions | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 15,205 | 15,201 | 14,167 |
Project management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 7,310 | 4,650 | 2,932 |
Project management | Global Workplace Solutions | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 7,310 | 4,650 | 2,932 |
Advisory leasing | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 3,506 | 3,875 | 3,308 |
Advisory leasing | Corporate And Reconciling Items | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 3 | 3 | 2 |
Advisory leasing | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 3,503 | 3,872 | 3,306 |
Advisory sales | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 1,611 | 2,523 | 2,790 |
Advisory sales | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 1,611 | 2,523 | 2,790 |
Property management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 1,908 | 1,830 | 1,717 |
Property management | Corporate And Reconciling Items | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | (20) | (19) | (22) |
Property management | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 1,928 | 1,849 | 1,739 |
Valuation | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 716 | 765 | 733 |
Valuation | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 716 | 765 | 733 |
Commercial mortgage origination | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 138 | 274 | 314 |
Total Out of Scope of Topic 606 Revenue | 286 | 289 | 388 |
Commercial mortgage origination | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 138 | 274 | 314 |
Total Out of Scope of Topic 606 Revenue | 286 | 289 | 388 |
Loan servicing | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 73 | 57 | 43 |
Total Out of Scope of Topic 606 Revenue | 244 | 254 | 262 |
Loan servicing | Advisory Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 73 | 57 | 43 |
Total Out of Scope of Topic 606 Revenue | 244 | 254 | 262 |
Investment management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 592 | 595 | 556 |
Investment management | Real Estate Investments | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 592 | 595 | 556 |
Development services | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 345 | 404 | 390 |
Total Out of Scope of Topic 606 Revenue | 15 | 111 | 146 |
Development services | Real Estate Investments | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 Revenue | 345 | 404 | 390 |
Total Out of Scope of Topic 606 Revenue | $ 15 | $ 111 | $ 146 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 517.4 | $ 529.1 | |
Contract assets, current | 442.9 | 391.6 | |
Increase in contract assets | (11.7) | ||
Contract liabilities | 304.3 | 284.3 | |
Contract liabilities, current | 297.6 | 276.3 | |
Recognized revenue included in contract liability | (232.7) | ||
Capitalized contract cost | 39.8 | 29.9 | $ 84.9 |
Capitalized contract cost, amortization of transaction cost | $ 36.7 | $ 42.1 | $ 40.3 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Global business segments | 3 |
Segments - Summarized Financial
Segments - Summarized Financial Information by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 31,949 | $ 30,828 | $ 27,746 |
Depreciation and amortization | 622 | 613 | 526 |
Equity income from unconsolidated subsidiaries | 248 | 229 | 619 |
Segment Operating Profit | 1,117 | 1,512 | 1,637 |
Amortization of right-to-use assets | 36 | 31 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment Operating Profit | 2,609 | 3,327 | 3,291 |
Corporate And Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Revenue | (17) | (16) | (20) |
Depreciation and amortization | 56 | 33 | 29 |
Equity income from unconsolidated subsidiaries | 27 | (167) | 37 |
Segment Operating Profit | 368 | 578 | 217 |
Advisory Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 8,499 | 9,883 | 9,575 |
Depreciation and amortization | 289 | 311 | 311 |
Equity income from unconsolidated subsidiaries | 4 | 15 | 25 |
Segment Operating Profit | 1,364 | 1,910 | 2,063 |
Global Workplace Solutions | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 22,515 | 19,851 | 17,099 |
Depreciation and amortization | 262 | 253 | 159 |
Equity income from unconsolidated subsidiaries | 1 | 1 | 2 |
Segment Operating Profit | 1,006 | 899 | 708 |
Amortization of right-to-use assets | 46.4 | 52.7 | 52.2 |
Real Estate Investments | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 952 | 1,110 | 1,092 |
Depreciation and amortization | 15 | 16 | 27 |
Equity income from unconsolidated subsidiaries | 216 | 380 | 555 |
Segment Operating Profit | $ 239 | $ 518 | $ 520 |
Segments - Reconciliation of Se
Segments - Reconciliation of Segment Operating Profit (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Net income attributable to CBRE Group, Inc. stockholders | $ 986 | $ 1,407 | $ 1,837 | |
Net income attributable to non-controlling interests | 41 | 17 | 5 | |
Net income | 1,027 | 1,424 | 1,842 | |
Depreciation and amortization | 622 | 613 | 526 | |
Asset impairments | $ 10.4 | 0 | 58.7 | 0 |
Interest expense, net of interest income | 149 | 69 | 50 | |
Write-off of financing costs on extinguished debt | 0 | 2 | 0 | |
Provision for income taxes | 250 | 234 | 568 | |
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue | (7) | (4) | 50 | |
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period | 0 | (5) | (6) | |
Costs incurred related to legal entity restructuring | 13 | 13 | 0 | |
Integration and other costs related to acquisitions | 62 | 40 | 44 | |
Costs associated with efficiency and cost-reduction initiatives | $ 159 | 118 | 0 | |
Environmental Remediation Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Segment Operating Profit | |||
Provision for Telford's fire safety remediation | $ 0 | 186 | 0 | |
One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired | (34) | 0 | 0 | |
Segment Operating Profit | 1,117 | 1,512 | 1,637 | |
Corporate And Reconciling Items | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Depreciation and amortization | 56 | 33 | 29 | |
Segment Operating Profit | 368 | 578 | 217 | |
Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Segment Operating Profit | $ 2,609 | $ 3,327 | $ 3,291 |
Segments - Summary of Geographi
Segments - Summary of Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 31,949 | $ 30,828 | $ 27,746 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 17,458 | 17,464 | 15,700 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 4,393 | 4,084 | 3,618 |
All other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 10,098 | $ 9,280 | $ 8,428 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Employees Other Than Executive Officers - Related Party - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Other Receivables | $ 732.5 | $ 600.1 |
Maximum | ||
Related Party Transaction [Line Items] | ||
Related party transaction, rate | 7% |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | ||
Cost of revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 17.4 | $ 33.4 | |
Operating, administrative and other expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 133 | $ 84.1 |
Restructuring Activities - Tran
Restructuring Activities - Transformation and workforce optimization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | ||
Efficiency And Cost Reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 168 | $ 126 | |
Efficiency And Cost Reduction | Corporate, Non-Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 14 | 32 | |
Efficiency And Cost Reduction | Advisory Services | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 78 | 51 | |
Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 52 | 31 | |
Efficiency And Cost Reduction | Real Estate Investments | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 24 | 12 | |
Employee separation benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 82 | 82 | |
Employee separation benefits | Efficiency And Cost Reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 82 | 81 | |
Employee separation benefits | Efficiency And Cost Reduction | Corporate, Non-Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 11 | 19 | |
Employee separation benefits | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 26 | 33 | |
Employee separation benefits | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 32 | 20 | |
Employee separation benefits | Efficiency And Cost Reduction | Real Estate Investments | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 13 | 9 | |
Lease exit costs | Efficiency And Cost Reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 45 | 13 | |
Lease exit costs | Efficiency And Cost Reduction | Corporate, Non-Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1 | 0 | |
Lease exit costs | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 39 | 10 | |
Lease exit costs | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1 | 3 | |
Lease exit costs | Efficiency And Cost Reduction | Real Estate Investments | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4 | 0 | |
Professional fees | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 32 | 23 | |
Professional fees | Efficiency And Cost Reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 32 | 24 | |
Professional fees | Efficiency And Cost Reduction | Corporate, Non-Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2 | 13 | |
Professional fees | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 7 | 3 | |
Professional fees | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 19 | 5 | |
Professional fees | Efficiency And Cost Reduction | Real Estate Investments | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4 | 3 | |
Subtotal | Efficiency And Cost Reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 159 | 118 | |
Subtotal | Efficiency And Cost Reduction | Corporate, Non-Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 14 | 32 | |
Subtotal | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 72 | 46 | |
Subtotal | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 52 | 28 | |
Subtotal | Efficiency And Cost Reduction | Real Estate Investments | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 21 | 12 | |
Depreciation expense | Efficiency And Cost Reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 9 | 8 | |
Depreciation expense | Efficiency And Cost Reduction | Corporate, Non-Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | |
Depreciation expense | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 6 | 5 | |
Depreciation expense | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 3 | |
Depreciation expense | Efficiency And Cost Reduction | Real Estate Investments | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 3 | $ 0 |
Restructuring Activities - Liab
Restructuring Activities - Liability Balance Associated with major Cash-based Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Expense incurred | $ 0 | ||
Employee separation benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning Balance | $ 37 | $ 0 | |
Expense incurred | 82 | 82 | |
Payments made | (106) | (45) | |
Restructuring Reserve, Ending Balance | 13 | 37 | 0 |
Professional fees | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning Balance | 10 | 0 | |
Expense incurred | 32 | 23 | |
Payments made | (42) | (13) | |
Restructuring Reserve, Ending Balance | $ 0 | $ 10 | $ 0 |
Telford Fire Safety Remediati_2
Telford Fire Safety Remediation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag | liability | |
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | |
Telford Fire Safety Remediation | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated environmental liability | $ 192.1 | $ 185.9 |
Current portion of estimated environmental liability | $ 82.2 | $ 51.6 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 92 | $ 97 | $ 95 |
Additions: Charges to expense | 34 | 17 | 18 |
Deductions: Write-offs, payments and other | 24 | 22 | 16 |
Ending balance | $ 102 | $ 92 | $ 97 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - Subsequent Event - J&J Worldwide Services $ in Millions | Feb. 05, 2024 USD ($) |
Subsequent Event [Line Items] | |
Purchase price | $ 800 |
Contingent earn-out liability | $ 250 |