Guarantor and Nonguarantor Financial Statements | 3 Months Ended |
Mar. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor and Nonguarantor Financial Statements | 15. Guarantor and Nonguarantor Financial Statements |
The following condensed consolidating financial information includes: |
(1) Condensed consolidating balance sheets as of March 31, 2015 and December 31, 2014; condensed consolidating statements of operations for the three months ended March 31, 2015 and 2014; condensed consolidating statements of comprehensive income (loss) for the three months ended March 31, 2015 and 2014; and condensed consolidating statements of cash flows for the three months ended March 31, 2015 and 2014 of (a) CBRE Group, Inc. as the parent, (b) CBRE Services, Inc. (CBRE) as the subsidiary issuer, (c) the guarantor subsidiaries, (d) the nonguarantor subsidiaries and (e) CBRE Group, Inc. on a consolidated basis; and |
(2) Elimination entries necessary to consolidate CBRE Group, Inc. as the parent with CBRE and its guarantor and nonguarantor subsidiaries. |
Investments in consolidated subsidiaries are presented using the equity method of accounting. The principal elimination entries eliminate investments in consolidated subsidiaries and intercompany balances and transactions. |
|
CONDENSED CONSOLIDATING BALANCE SHEET |
AS OF MARCH 31, 2015 |
(Dollars in thousands) |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Parent | | | CBRE | | | Guarantor | | | Nonguarantor | | | Elimination | | | Consolidated | |
Subsidiaries | Subsidiaries | Total |
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 5 | | | $ | 5,653 | | | $ | 33,654 | | | $ | 339,716 | | | $ | — | | | $ | 379,028 | |
Restricted cash | | | — | | | | — | | | | 3,961 | | | | 52,733 | | | | — | | | | 56,694 | |
Receivables, net | | | — | | | | — | | | | 641,188 | | | | 895,912 | | | | — | | | | 1,537,100 | |
Warehouse receivables (a) | | | — | | | | — | | | | 343,406 | | | | 736,958 | | | | — | | | | 1,080,364 | |
Trading securities | | | — | | | | — | | | | 113 | | | | 64,011 | | | | — | | | | 64,124 | |
Income taxes receivable | | | 4,960 | | | | — | | | | 12,557 | | | | 13,330 | | | | — | | | | 30,847 | |
Prepaid expenses | | | — | | | | — | | | | 58,348 | | | | 84,849 | | | | — | | | | 143,197 | |
Deferred tax assets, net | | | — | | | | — | | | | 140,746 | | | | 52,578 | | | | — | | | | 193,324 | |
Real estate and other assets held for sale | | | — | | | | — | | | | 1,062 | | | | 4,060 | | | | — | | | | 5,122 | |
Available for sale securities | | | — | | | | — | | | | 849 | | | | — | | | | — | | | | 849 | |
Other current assets | | | — | | | | 17,777 | | | | 51,474 | | | | 33,979 | | | | — | | | | 103,230 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Current Assets | | | 4,965 | | | | 23,430 | | | | 1,287,358 | | | | 2,278,126 | | | | — | | | | 3,593,879 | |
Property and equipment, net | | | — | | | | — | | | | 350,384 | | | | 129,367 | | | | — | | | | 479,751 | |
Goodwill | | | — | | | | — | | | | 1,200,012 | | | | 1,066,997 | | | | — | | | | 2,267,009 | |
Other intangible assets, net | | | — | | | | — | | | | 505,278 | | | | 283,739 | | | | — | | | | 789,017 | |
Investments in unconsolidated subsidiaries | | | — | | | | — | | | | 170,732 | | | | 39,073 | | | | — | | | | 209,805 | |
Investments in consolidated subsidiaries | | | 3,074,751 | | | | 2,448,431 | | | | 809,953 | | | | — | | | | (6,333,135 | ) | | | — | |
Intercompany loan receivable | | | — | | | | 2,423,383 | | | | 700,000 | | | | — | | | | (3,123,383 | ) | | | — | |
Real estate under development | | | — | | | | — | | | | 831 | | | | 6,689 | | | | — | | | | 7,520 | |
Real estate held for investment | | | — | | | | — | | | | 5,609 | | | | 29,271 | | | | — | | | | 34,880 | |
Available for sale securities | | | — | | | | — | | | | 53,800 | | | | 1,787 | | | | — | | | | 55,587 | |
Other assets, net | | | — | | | | 50,913 | | | | 100,868 | | | | 36,431 | | | | — | | | | 188,212 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 3,079,716 | | | $ | 4,946,157 | | | $ | 5,184,825 | | | $ | 3,871,480 | | | $ | (9,456,518 | ) | | $ | 7,625,660 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | $ | — | | | $ | 5,355 | | | $ | 173,257 | | | $ | 523,513 | | | $ | — | | | $ | 702,125 | |
Compensation and employee benefits payable | | | — | | | | 626 | | | | 271,013 | | | | 219,679 | | | | — | | | | 491,318 | |
Accrued bonus and profit sharing | | | — | | | | — | | | | 189,756 | | | | 311,581 | | | | — | | | | 501,337 | |
Short-term borrowings: | | | | | | | | | | | | | | | | | | | | | | | | |
Warehouse lines of credit (a) | | | — | | | | — | | | | 341,542 | | | | 724,349 | | | | — | | | | 1,065,891 | |
Revolving credit facility | | | — | | | | 110,000 | | | | — | | | | — | | | | — | | | | 110,000 | |
Other | | | — | | | | — | | | | 16 | | | | — | | | | — | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total short-term borrowings | | | — | | | | 110,000 | | | | 341,558 | | | | 724,349 | | | | — | | | | 1,175,907 | |
Current maturities of long-term debt | | | — | | | | 12,500 | | | | 2,775 | | | | 21 | | | | — | | | | 15,296 | |
Notes payable on real estate | | | — | | | | — | | | | — | | | | 23,253 | | | | — | | | | 23,253 | |
Other current liabilities | | | — | | | | 106 | | | | 59,713 | | | | 3,934 | | | | — | | | | 63,753 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Current Liabilities | | | — | | | | 128,587 | | | | 1,038,072 | | | | 1,806,330 | | | | — | | | | 2,972,989 | |
Long-Term Debt: | | | | | | | | | | | | | | | | | | | | | | | | |
5.00% senior notes | | | — | | | | 800,000 | | | | — | | | | — | | | | — | | | | 800,000 | |
Senior secured term loans | | | — | | | | 487,500 | | | | — | | | | — | | | | — | | | | 487,500 | |
5.25% senior notes | | | — | | | | 426,819 | | | | — | | | | — | | | | — | | | | 426,819 | |
Other long-term debt | | | — | | | | — | | | | — | | | | 23 | | | | — | | | | 23 | |
Intercompany loan payable | | | 820,408 | | | | — | | | | 1,328,460 | | | | 974,515 | | | | (3,123,383 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Long-Term Debt | | | 820,408 | | | | 1,714,319 | | | | 1,328,460 | | | | 974,538 | | | | (3,123,383 | ) | | | 1,714,342 | |
Notes payable on real estate | | | — | | | | — | | | | — | | | | 19,952 | | | | — | | | | 19,952 | |
Deferred tax liabilities, net | | | — | | | | — | | | | 104,418 | | | | 48,320 | | | | — | | | | 152,738 | |
Non-current tax liabilities | | | — | | | | — | | | | 47,651 | | | | 82 | | | | — | | | | 47,733 | |
Pension liability | | | — | | | | — | | | | — | | | | 87,152 | | | | — | | | | 87,152 | |
Other liabilities | | | — | | | | 28,500 | | | | 217,793 | | | | 79,440 | | | | — | | | | 325,733 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 820,408 | | | | 1,871,406 | | | | 2,736,394 | | | | 3,015,814 | | | | (3,123,383 | ) | | | 5,320,639 | |
Commitments and contingencies | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
CBRE Group, Inc. Stockholders’ Equity | | | 2,259,308 | | | | 3,074,751 | | | | 2,448,431 | | | | 809,953 | | | | (6,333,135 | ) | | | 2,259,308 | |
Non-controlling interests | | | — | | | | — | | | | — | | | | 45,713 | | | | — | | | | 45,713 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Equity | | | 2,259,308 | | | | 3,074,751 | | | | 2,448,431 | | | | 855,666 | | | | (6,333,135 | ) | | | 2,305,021 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Equity | | $ | 3,079,716 | | | $ | 4,946,157 | | | $ | 5,184,825 | | | $ | 3,871,480 | | | $ | (9,456,518 | ) | | $ | 7,625,660 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
(a) | Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 5.25% senior notes and our 2015 Credit Agreement, a substantial majority of warehouse receivables funded under Bank of America (BofA), TD Bank, N.A. (TD Bank), Capital One, N.A. (Capital One), JP Morgan Chase Bank, N.A. (JP Morgan) and Fannie Mae ASAP lines of credit are pledged to BofA, TD Bank, Capital One, JP Morgan and Fannie Mae, and accordingly, are not included as collateral for these notes or our other outstanding debt. | | | | | | | | | | | | | | | | | | | | | | | |
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CONDENSED CONSOLIDATING BALANCE SHEET |
AS OF DECEMBER 31, 2014 |
(Dollars in thousands) |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Parent | | | CBRE | | | Guarantor | | | Nonguarantor | | | Elimination | | | Consolidated | |
Subsidiaries | Subsidiaries | Total |
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 5 | | | $ | 18,262 | | | $ | 374,103 | | | $ | 348,514 | | | $ | — | | | $ | 740,884 | |
Restricted cash | | | — | | | | — | | | | 630 | | | | 27,460 | | | | — | | | | 28,090 | |
Receivables, net | | | — | | | | — | | | | 605,044 | | | | 1,131,185 | | | | — | | | | 1,736,229 | |
Warehouse receivables (a) | | | — | | | | — | | | | 339,921 | | | | 166,373 | | | | — | | | | 506,294 | |
Trading securities | | | — | | | | — | | | | 115 | | | | 62,689 | | | | — | | | | 62,804 | |
Income taxes receivable | | | 19,443 | | | | — | | | | — | | | | 10,603 | | | | (17,337 | ) | | | 12,709 | |
Prepaid expenses | | | — | | | | — | | | | 62,902 | | | | 79,817 | | | | — | | | | 142,719 | |
Deferred tax assets, net | | | — | | | | — | | | | 140,761 | | | | 65,105 | | | | — | | | | 205,866 | |
Real estate and other assets held for sale | | | — | | | | — | | | | — | | | | 3,845 | | | | — | | | | 3,845 | |
Available for sale securities | | | — | | | | — | | | | 663 | | | | — | | | | — | | | | 663 | |
Other current assets | | | — | | | | 1,185 | | | | 50,429 | | | | 32,787 | | | | — | | | | 84,401 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Current Assets | | | 19,448 | | | | 19,447 | | | | 1,574,568 | | | | 1,928,378 | | | | (17,337 | ) | | | 3,524,504 | |
Property and equipment, net | | | — | | | | — | | | | 361,899 | | | | 136,027 | | | | — | | | | 497,926 | |
Goodwill | | | — | | | | — | | | | 1,196,418 | | | | 1,137,403 | | | | — | | | | 2,333,821 | |
Other intangible assets, net | | | — | | | | — | | | | 493,058 | | | | 309,302 | | | | — | | | | 802,360 | |
Investments in unconsolidated subsidiaries | | | — | | | | — | | | | 173,738 | | | | 44,542 | | | | — | | | | 218,280 | |
Investments in consolidated subsidiaries | | | 3,019,410 | | | | 2,433,913 | | | | 914,895 | | | | — | | | | (6,368,218 | ) | | | — | |
Intercompany loan receivable | | | — | | | | 2,453,215 | | | | 700,000 | | | | — | | | | (3,153,215 | ) | | | — | |
Real estate under development | | | — | | | | — | | | | 828 | | | | 3,802 | | | | — | | | | 4,630 | |
Real estate held for investment | | | — | | | | — | | | | 6,814 | | | | 30,315 | | | | — | | | | 37,129 | |
Available for sale securities | | | — | | | | — | | | | 57,714 | | | | 1,798 | | | | — | | | | 59,512 | |
Other assets, net | | | — | | | | 33,581 | | | | 98,139 | | | | 37,223 | | | | — | | | | 168,943 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 3,038,858 | | | $ | 4,940,156 | | | $ | 5,578,071 | | | $ | 3,628,790 | | | $ | (9,538,770 | ) | | $ | 7,647,105 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | $ | — | | | $ | 19,541 | | | $ | 257,591 | | | $ | 550,398 | | | $ | — | | | $ | 827,530 | |
Compensation and employee benefits payable | | | — | | | | 626 | | | | 346,663 | | | | 276,525 | | | | — | | | | 623,814 | |
Accrued bonus and profit sharing | | | — | | | | — | | | | 425,329 | | | | 363,529 | | | | — | | | | 788,858 | |
Income taxes payable | | | — | | | | — | | | | 17,337 | | | | — | | | | (17,337 | ) | | | — | |
Short-term borrowings: | | | | | | | | | | | | | | | | | | | | | | | | |
Warehouse lines of credit (a) | | | — | | | | — | | | | 337,184 | | | | 164,001 | | | | — | | | | 501,185 | |
Revolving credit facility | | | — | | | | — | | | | — | | | | 4,840 | | | | — | | | | 4,840 | |
Other | | | — | | | | — | | | | 16 | | | | 9 | | | | — | | | | 25 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total short-term borrowings | | | — | | | | — | | | | 337,200 | | | | 168,850 | | | | — | | | | 506,050 | |
Current maturities of long-term debt | | | — | | | | 39,650 | | | | 2,734 | | | | 23 | | | | — | | | | 42,407 | |
Notes payable on real estate | | | — | | | | — | | | | — | | | | 23,229 | | | | — | | | | 23,229 | |
Other current liabilities | | | — | | | | 1,258 | | | | 58,357 | | | | 4,131 | | | | — | | | | 63,746 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Current Liabilities | | | — | | | | 61,075 | | | | 1,445,211 | | | | 1,386,685 | | | | (17,337 | ) | | | 2,875,634 | |
Long-Term Debt: | | | | | | | | | | | | | | | | | | | | | | | | |
5.00% senior notes | | | — | | | | 800,000 | | | | — | | | | — | | | | — | | | | 800,000 | |
Senior secured term loans | | | — | | | | 605,963 | | | | — | | | | — | | | | — | | | | 605,963 | |
5.25% senior notes | | | — | | | | 426,813 | | | | — | | | | — | | | | — | | | | 426,813 | |
Other long-term debt | | | — | | | | — | | | | — | | | | 26 | | | | — | | | | 26 | |
Intercompany loan payable | | | 779,028 | | | | — | | | | 1,350,424 | | | | 1,023,763 | | | | (3,153,215 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Long-Term Debt | | | 779,028 | | | | 1,832,776 | | | | 1,350,424 | | | | 1,023,789 | | | | (3,153,215 | ) | | | 1,832,802 | |
Notes payable on real estate | | | — | | | | — | | | | — | | | | 19,614 | | | | — | | | | 19,614 | |
Deferred tax liabilities, net | | | — | | | | — | | | | 87,486 | | | | 61,747 | | | | — | | | | 149,233 | |
Non-current tax liabilities | | | — | | | | — | | | | 45,936 | | | | 67 | | | | — | | | | 46,003 | |
Pension liability | | | — | | | | — | | | | — | | | | 92,923 | | | | — | | | | 92,923 | |
Other liabilities | | | — | | | | 26,895 | | | | 215,101 | | | | 87,502 | | | | — | | | | 329,498 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 779,028 | | | | 1,920,746 | | | | 3,144,158 | | | | 2,672,327 | | | | (3,170,552 | ) | | | 5,345,707 | |
Commitments and contingencies | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
CBRE Group, Inc. Stockholders’ Equity | | | 2,259,830 | | | | 3,019,410 | | | | 2,433,913 | | | | 914,895 | | | | (6,368,218 | ) | | | 2,259,830 | |
Non-controlling interests | | | — | | | | — | | | | — | | | | 41,568 | | | | — | | | | 41,568 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Equity | | | 2,259,830 | | | | 3,019,410 | | | | 2,433,913 | | | | 956,463 | | | | (6,368,218 | ) | | | 2,301,398 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Equity | | $ | 3,038,858 | | | $ | 4,940,156 | | | $ | 5,578,071 | | | $ | 3,628,790 | | | $ | (9,538,770 | ) | | $ | 7,647,105 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
(a) | Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 5.25% senior notes and our 2013 Credit Agreement, a substantial majority of warehouse receivables funded under BofA, JP Morgan, Capital One and Fannie Mae ASAP lines of credit are pledged to BofA, JP Morgan, Capital One and Fannie Mae, and accordingly, are not included as collateral for these notes or our other outstanding debt. | | | | | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
FOR THE THREE MONTHS ENDED MARCH 31, 2015 |
(Dollars in thousands) |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Parent | | | CBRE | | | Guarantor | | | Nonguarantor | | | Elimination | | | Consolidated | |
Subsidiaries | Subsidiaries | Total |
Revenue | | $ | — | | | $ | — | | | $ | 1,157,871 | | | $ | 894,632 | | | $ | — | | | $ | 2,052,503 | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of services | | | — | | | | — | | | | 717,643 | | | | 573,134 | | | | — | | | | 1,290,777 | |
Operating, administrative and other | | | 13,144 | | | | (18,620 | ) | | | 284,587 | | | | 252,664 | | | | — | | | | 531,775 | |
Depreciation and amortization | | | — | | | | — | | | | 36,527 | | | | 33,319 | | | | — | | | | 69,846 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total costs and expenses | | | 13,144 | | | | (18,620 | ) | | | 1,038,757 | | | | 859,117 | | | | — | | | | 1,892,398 | |
Operating (loss) income | | | (13,144 | ) | | | 18,620 | | | | 119,114 | | | | 35,515 | | | | — | | | | 160,105 | |
Equity income from unconsolidated subsidiaries | | | — | | | | — | | | | 15,321 | | | | 130 | | | | — | | | | 15,451 | |
Other income | | | — | | | | — | | | | 924 | | | | 163 | | | | — | | | | 1,087 | |
Interest income | | | — | | | | 55,367 | | | | 674 | | | | 1,623 | | | | (55,367 | ) | | | 2,297 | |
Interest expense | | | — | | | | 24,886 | | | | 39,402 | | | | 17,293 | | | | (55,367 | ) | | | 26,214 | |
Write-off of financing costs | | | — | | | | 2,685 | | | | — | | | | — | | | | — | | | | 2,685 | |
Royalty and management service (income) expense | | | — | | | | — | | | | (4,102 | ) | | | 4,102 | | | | — | | | | — | |
Income from consolidated subsidiaries | | | 101,121 | | | | 72,220 | | | | 225 | | | | — | | | | (173,566 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before (benefit of) provision for income taxes | | | 87,977 | | | | 118,636 | | | | 100,958 | | | | 16,036 | | | | (173,566 | ) | | | 150,041 | |
(Benefit of) provision for income taxes | | | (4,960 | ) | | | 17,515 | | | | 28,738 | | | | 15,610 | | | | — | | | | 56,903 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | 92,937 | | | | 101,121 | | | | 72,220 | | | | 426 | | | | (173,566 | ) | | | 93,138 | |
Less: Net income attributable to non-controlling interests | | | — | | | | — | | | | — | | | | 201 | | | | — | | | | 201 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to CBRE Group, Inc. | | $ | 92,937 | | | $ | 101,121 | | | $ | 72,220 | | | $ | 225 | | | $ | (173,566 | ) | | $ | 92,937 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
FOR THE THREE MONTHS ENDED MARCH 31, 2014 |
(Dollars in thousands) |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Parent | | | CBRE | | | Guarantor | | | Nonguarantor | | | Elimination | | | Consolidated | |
Subsidiaries | Subsidiaries | Total |
Revenue | | $ | — | | | $ | — | | | $ | 956,638 | | | $ | 904,204 | | | $ | — | | | $ | 1,860,842 | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of services | | | — | | | | — | | | | 594,917 | | | | 566,543 | | | | — | | | | 1,161,460 | |
Operating, administrative and other | | | 9,672 | | | | 1,399 | | | | 253,985 | | | | 263,339 | | | | — | | | | 528,395 | |
Depreciation and amortization | | | — | | | | — | | | | 31,181 | | | | 34,022 | | | | — | | | | 65,203 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total costs and expenses | | | 9,672 | | | | 1,399 | | | | 880,083 | | | | 863,904 | | | | — | | | | 1,755,058 | |
Gain on disposition of real estate | | | — | | | | — | | | | 6,697 | | | | — | | | | — | | | | 6,697 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating (loss) income | | | (9,672 | ) | | | (1,399 | ) | | | 83,252 | | | | 40,300 | | | | — | | | | 112,481 | |
Equity income (loss) from unconsolidated subsidiaries | | | — | | | | — | | | | 17,202 | | | | (2,202 | ) | | | — | | | | 15,000 | |
Other income | | | — | | | | — | | | | 842 | | | | 3,959 | | | | — | | | | 4,801 | |
Interest income | | | — | | | | 52,270 | | | | 600 | | | | 972 | | | | (52,265 | ) | | | 1,577 | |
Interest expense | | | — | | | | 24,602 | | | | 42,026 | | | | 13,652 | | | | (52,265 | ) | | | 28,015 | |
Royalty and management service (income) expense | | | — | | | | — | | | | (1,858 | ) | | | 1,858 | | | | — | | | | — | |
Income (loss) from consolidated subsidiaries | | | 73,729 | | | | 57,255 | | | | (2,837 | ) | | | — | | | | (128,147 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before (benefit of) provision for income taxes | | | 64,057 | | | | 83,524 | | | | 58,891 | | | | 27,519 | | | | (128,147 | ) | | | 105,844 | |
(Benefit of) provision for income taxes | | | (3,606 | ) | | | 9,795 | | | | 1,636 | | | | 30,077 | | | | — | | | | 37,902 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | 67,663 | | | | 73,729 | | | | 57,255 | | | | (2,558 | ) | | | (128,147 | ) | | | 67,942 | |
Less: Net income attributable to non-controlling interests | | | — | | | | — | | | | — | | | | 279 | | | | — | | | | 279 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to CBRE Group, Inc. | | $ | 67,663 | | | $ | 73,729 | | | $ | 57,255 | | | $ | (2,837 | ) | | $ | (128,147 | ) | | $ | 67,663 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) |
FOR THE THREE MONTHS ENDED MARCH 31, 2015 |
(Dollars in thousands) |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Parent | | | CBRE | | | Guarantor | | | Nonguarantor | | | Elimination | | | Consolidated | |
Subsidiaries | Subsidiaries | Total |
Net income | | $ | 92,937 | | | $ | 101,121 | | | $ | 72,220 | | | $ | 426 | | | $ | (173,566 | ) | | $ | 93,138 | |
Other comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation loss | | | — | | | | — | | | | — | | | | (105,420 | ) | | | — | | | | (105,420 | ) |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | | | — | | | | 1,795 | | | | — | | | | — | | | | — | | | | 1,795 | |
Unrealized losses on interest rate swaps, net of tax | | | — | | | | (2,774 | ) | | | — | | | | — | | | | — | | | | (2,774 | ) |
Unrealized holding (losses) gains on available for sale securities, net of tax | | | — | | | | — | | | | (287 | ) | | | 121 | | | | — | | | | (166 | ) |
Other, net | | | — | | | | — | | | | 2 | | | | — | | | | — | | | | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other comprehensive loss | | | — | | | | (979 | ) | | | (285 | ) | | | (105,299 | ) | | | — | | | | (106,563 | ) |
Comprehensive income (loss) | | | 92,937 | | | | 100,142 | | | | 71,935 | | | | (104,873 | ) | | | (173,566 | ) | | | (13,425 | ) |
Less: Comprehensive income attributable to non-controlling interests | | | — | | | | — | | | | — | | | | 168 | | | | — | | | | 168 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Comprehensive income (loss) attributable to CBRE Group, Inc. | | $ | 92,937 | | | $ | 100,142 | | | $ | 71,935 | | | $ | (105,041 | ) | | $ | (173,566 | ) | | $ | (13,593 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME |
FOR THE THREE MONTHS ENDED MARCH 31, 2014 |
(Dollars in thousands) |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Parent | | | CBRE | | | Guarantor | | | Nonguarantor | | | Elimination | | | Consolidated | |
Subsidiaries | Subsidiaries | Total |
Net income (loss) | | $ | 67,663 | | | $ | 73,729 | | | $ | 57,255 | | | $ | (2,558 | ) | | $ | (128,147 | ) | | $ | 67,942 | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation gain | | | — | | | | — | | | | — | | | | 11,573 | | | | — | | | | 11,573 | |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | | | — | | | | 1,800 | | | | — | | | | — | | | | — | | | | 1,800 | |
Unrealized (losses) gains on interest rate swaps and interest rate caps, net of tax | | | — | | | | (1,565 | ) | | | — | | | | 61 | | | | — | | | | (1,504 | ) |
Unrealized holding gains on available for sale securities, net of tax | | | — | | | | — | | | | 368 | | | | 70 | | | | — | | | | 438 | |
Other, net | | | — | | | | — | | | | 275 | | | | — | | | | — | | | | 275 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other comprehensive income | | | — | | | | 235 | | | | 643 | | | | 11,704 | | | | — | | | | 12,582 | |
Comprehensive income | | | 67,663 | | | | 73,964 | | | | 57,898 | | | | 9,146 | | | | (128,147 | ) | | | 80,524 | |
Less: Comprehensive income attributable to non-controlling interests | | | — | | | | — | | | | — | | | | 285 | | | | — | | | | 285 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Comprehensive income attributable to CBRE Group, Inc. | | $ | 67,663 | | | $ | 73,964 | | | $ | 57,898 | | | $ | 8,861 | | | $ | (128,147 | ) | | $ | 80,239 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
FOR THE THREE MONTHS ENDED MARCH 31, 2015 |
(Dollars in thousands) |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Parent | | | CBRE | | | Guarantor | | | Nonguarantor | | | Consolidated | | | | | |
Subsidiaries | Subsidiaries | Total | | | | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | | $ | 22,240 | | | $ | 828 | | | $ | (296,579 | ) | | $ | 93,661 | | | $ | (179,850 | ) | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | | — | | | | — | | | | (8,536 | ) | | | (10,092 | ) | | | (18,628 | ) | | | | |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | | | — | | | | — | | | | (73,061 | ) | | | (1,972 | ) | | | (75,033 | ) | | | | |
Contributions to unconsolidated subsidiaries | | | — | | | | — | | | | (13,930 | ) | | | (911 | ) | | | (14,841 | ) | | | | |
Distributions from unconsolidated subsidiaries | | | — | | | | — | | | | 22,865 | | | | 1,557 | | | | 24,422 | | | | | |
Additions to real estate held for investment | | | — | | | | — | | | | — | | | | (670 | ) | | | (670 | ) | | | | |
Proceeds from the sale of servicing rights and other assets | | | — | | | | — | | | | 2,410 | | | | 2,531 | | | | 4,941 | | | | | |
Increase in restricted cash | | | — | | | | — | | | | (3,331 | ) | | | (28,027 | ) | | | (31,358 | ) | | | | |
Purchase of available for sale securities | | | — | | | | — | | | | (11,878 | ) | | | — | | | | (11,878 | ) | | | | |
Proceeds from the sale of available for sale securities | | | — | | | | — | | | | 15,854 | | | | — | | | | 15,854 | | | | | |
Other investing activities, net | | | — | | | | — | | | | 358 | | | | — | | | | 358 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | | | — | | | | — | | | | (69,249 | ) | | | (37,584 | ) | | | (106,833 | ) | | | | |
| | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from senior secured term loans | | | — | | | | 500,000 | | | | — | | | | — | | | | 500,000 | | | | | |
Repayment of senior secured term loans | | | — | | | | (645,613 | ) | | | — | | | | — | | | | (645,613 | ) | | | | |
Proceeds from revolving credit facility | | | — | | | | 264,000 | | | | — | | | | — | | | | 264,000 | | | | | |
Repayment of revolving credit facility | | | — | | | | (154,000 | ) | | | — | | | | (4,512 | ) | | | (158,512 | ) | | | | |
Repayment of notes payable on real estate held for investment | | | — | | | | — | | | | — | | | | (385 | ) | | | (385 | ) | | | | |
Proceeds from notes payable on real estate held for sale and under development | | | — | | | | — | | | | — | | | | 746 | | | | 746 | | | | | |
Shares repurchased for payment of taxes on equity awards | | | (5,092 | ) | | | — | | | | — | | | | — | | | | (5,092 | ) | | | | |
Incremental tax benefit from stock options exercised | | | 532 | | | | — | | | | — | | | | — | | | | 532 | | | | | |
Non-controlling interests contributions | | | — | | | | — | | | | — | | | | 4,192 | | | | 4,192 | | | | | |
Non-controlling interests distributions | | | — | | | | — | | | | — | | | | (748 | ) | | | (748 | ) | | | | |
Payment of financing costs | | | — | | | | (21,183 | ) | | | — | | | | — | | | | (21,183 | ) | | | | |
(Increase) decrease in intercompany receivables, net | | | (19,308 | ) | | | 43,359 | | | | 25,379 | | | | (49,430 | ) | | | — | | | | | |
Other financing activities, net | | | 1,628 | | | | — | | | | — | | | | — | | | | 1,628 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used in) provided by financing activities | | | (22,240 | ) | | | (13,437 | ) | | | 25,379 | | | | (50,137 | ) | | | (60,435 | ) | | | | |
Effect of currency exchange rate changes on cash and cash equivalents | | | — | | | | — | | | | — | | | | (14,738 | ) | | | (14,738 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
NET DECREASE IN CASH AND CASH EQUIVALENTS | | | — | | | | (12,609 | ) | | | (340,449 | ) | | | (8,798 | ) | | | (361,856 | ) | | | | |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | | | 5 | | | | 18,262 | | | | 374,103 | | | | 348,514 | | | | 740,884 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | | $ | 5 | | | $ | 5,653 | | | $ | 33,654 | | | $ | 339,716 | | | $ | 379,028 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash paid during the period for: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest | | $ | — | | | $ | 36,358 | | | $ | — | | | $ | 805 | | | $ | 37,163 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income tax payments, net | | $ | — | | | $ | — | | | $ | 34,160 | | | $ | 22,730 | | | $ | 56,890 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
FOR THE THREE MONTHS ENDED MARCH 31, 2014 |
(Dollars in thousands) |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Parent | | | CBRE | | | Guarantor | | | Nonguarantor | | | Consolidated | | | | | |
Subsidiaries | Subsidiaries | Total | | | | |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | | $ | 17,391 | | | $ | 42,115 | | | $ | (333,507 | ) | | $ | 4,035 | | | $ | (269,966 | ) | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | | — | | | | — | | | | (8,070 | ) | | | (5,583 | ) | | | (13,653 | ) | | | | |
Acquisition of businesses, including net assets acquired, intangibles and goodwill | | | — | | | | — | | | | (5,310 | ) | | | (9,394 | ) | | | (14,704 | ) | | | | |
Contributions to unconsolidated subsidiaries | | | — | | | | — | | | | (9,709 | ) | | | (1 | ) | | | (9,710 | ) | | | | |
Distributions from unconsolidated subsidiaries | | | — | | | | — | | | | 17,121 | | | | 158 | | | | 17,279 | | | | | |
Proceeds from the sale of servicing rights and other assets | | | — | | | | — | | | | 8,354 | | | | 962 | | | | 9,316 | | | | | |
Decrease in restricted cash | | | — | | | | 6,871 | | | | 1,515 | | | | 1,225 | | | | 9,611 | | | | | |
Purchase of available for sale securities | | | — | | | | — | | | | (12,660 | ) | | | — | | | | (12,660 | ) | | | | |
Proceeds from the sale of available for sale securities | | | — | | | | — | | | | 10,999 | | | | — | | | | 10,999 | | | | | |
Other investing activities, net | | | — | | | | — | | | | 23 | | | | 3 | | | | 26 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) investing activities | | | — | | | | 6,871 | | | | 2,263 | | | | (12,630 | ) | | | (3,496 | ) | | | | |
| | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
Repayment of senior secured term loans | | | — | | | | (9,913 | ) | | | — | | | | — | | | | (9,913 | ) | | | | |
Proceeds from revolving credit facility | | | — | | | | 613,000 | | | | — | | | | 4,765 | | | | 617,765 | | | | | |
Repayment of revolving credit facility | | | — | | | | (374,000 | ) | | | — | | | | (27,112 | ) | | | (401,112 | ) | | | | |
Repayment of notes payable on real estate held for investment | | | — | | | | — | | | | — | | | | (906 | ) | | | (906 | ) | | | | |
Proceeds from notes payable on real estate held for sale and under development | | | — | | | | — | | | | — | | | | 2,058 | | | | 2,058 | | | | | |
Incremental tax benefit from stock options exercised | | | 1,239 | | | | — | | | | — | | | | — | | | | 1,239 | | | | | |
Non-controlling interests contributions | | | — | | | | — | | | | — | | | | 119 | | | | 119 | | | | | |
Non-controlling interests distributions | | | — | | | | — | | | | — | | | | (2,024 | ) | | | (2,024 | ) | | | | |
Payment of financing costs | | | — | | | | — | | | | — | | | | (9 | ) | | | (9 | ) | | | | |
(Increase) decrease in intercompany receivables, net | | | (19,748 | ) | | | (281,009 | ) | | | 315,252 | | | | (14,495 | ) | | | — | | | | | |
Other financing activities, net | | | 1,120 | | | | — | | | | — | | | | (9 | ) | | | 1,111 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used in) provided by financing activities | | | (17,389 | ) | | | (51,922 | ) | | | 315,252 | | | | (37,613 | ) | | | 208,328 | | | | | |
Effect of currency exchange rate changes on cash and cash equivalents | | | — | | | | — | | | | — | | | | 1,459 | | | | 1,459 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | | | 2 | | | | (2,936 | ) | | | (15,992 | ) | | | (44,749 | ) | | | (63,675 | ) | | | | |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | | | 5 | | | | 11,585 | | | | 91,244 | | | | 389,078 | | | | 491,912 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | | $ | 7 | | | $ | 8,649 | | | $ | 75,252 | | | $ | 344,329 | | | $ | 428,237 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash paid during the period for: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest | | $ | — | | | $ | 27,256 | | | $ | 200 | | | $ | 1,968 | | | $ | 29,424 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income tax payments, net | | $ | — | | | $ | — | | | $ | 68,200 | | | $ | 29,863 | | | $ | 98,063 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |