Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CBG | |
Entity Registrant Name | CBRE GROUP, INC. | |
Entity Central Index Key | 1,138,118 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 337,874,535 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 533,281 | $ 762,576 |
Restricted cash | 59,046 | 68,836 |
Receivables, less allowance for doubtful accounts of $40,286 and $39,469 at March 31, 2017 and December 31, 2016, respectively | 2,499,115 | 2,605,602 |
Warehouse receivables | 685,133 | 1,276,047 |
Income taxes receivable | 55,438 | 45,626 |
Prepaid expenses | 212,336 | 184,107 |
Other current assets | 201,111 | 179,656 |
Total Current Assets | 4,245,460 | 5,122,450 |
Property and equipment, net | 551,633 | 560,756 |
Goodwill | 3,019,585 | 2,981,392 |
Other intangible assets, net of accumulated amortization of $825,419 and $771,673 at March 31, 2017 and December 31, 2016, respectively | 1,403,262 | 1,411,039 |
Investments in unconsolidated subsidiaries | 242,486 | 232,238 |
Deferred tax assets, net | 94,653 | 105,324 |
Other assets, net | 370,033 | 366,388 |
Total Assets | 9,927,112 | 10,779,587 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 1,320,584 | 1,446,438 |
Compensation and employee benefits payable | 719,967 | 772,922 |
Accrued bonus and profit sharing | 467,717 | 890,321 |
Income taxes payable | 109,894 | 58,351 |
Short-term borrowings: | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) | 671,453 | 1,254,653 |
Revolving credit facility | 120,000 | |
Other | 16 | 16 |
Total short-term borrowings | 791,469 | 1,254,669 |
Current maturities of long-term debt | 12 | 11 |
Other current liabilities | 63,537 | 102,717 |
Total Current Liabilities | 3,473,180 | 4,525,429 |
Long-term debt, net of current maturities | 2,549,258 | 2,548,126 |
Deferred tax liabilities, net | 78,142 | 70,719 |
Non-current tax liabilities | 40,770 | 54,042 |
Other liabilities | 527,523 | 524,026 |
Total Liabilities | 6,668,873 | 7,722,342 |
Commitments and contingencies | ||
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock; $0.01 par value; 525,000,000 shares authorized; 337,874,535 and 337,279,449 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 3,379 | 3,373 |
Additional paid-in capital | 1,159,294 | 1,145,226 |
Accumulated earnings | 2,786,503 | 2,656,906 |
Accumulated other comprehensive loss | (737,231) | (791,018) |
Total CBRE Group, Inc. Stockholders’ Equity | 3,211,945 | 3,014,487 |
Non-controlling interests | 46,294 | 42,758 |
Total Equity | 3,258,239 | 3,057,245 |
Total Liabilities and Equity | $ 9,927,112 | $ 10,779,587 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 40,286 | $ 39,469 |
Other intangible assets, accumulated amortization | $ 825,419 | $ 771,673 |
Class A common stock, par value | $ 0.01 | $ 0.01 |
Class A common stock, shares authorized | 525,000,000 | 525,000,000 |
Class A common stock, shares issued | 337,874,535 | 337,279,449 |
Class A common stock, shares outstanding | 337,874,535 | 337,279,449 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 2,981,204 | $ 2,846,734 |
Costs and expenses: | ||
Cost of services | 2,087,079 | 2,013,613 |
Operating, administrative and other | 606,231 | 643,366 |
Depreciation and amortization | 94,037 | 86,994 |
Total costs and expenses | 2,787,347 | 2,743,973 |
Gain on disposition of real estate | 1,385 | 4,819 |
Operating income | 195,242 | 107,580 |
Equity income from unconsolidated subsidiaries | 15,018 | 57,301 |
Other income | 4,115 | 3,215 |
Interest income | 2,411 | 1,459 |
Interest expense | 34,010 | 34,790 |
Income before provision for income taxes | 182,776 | 134,765 |
Provision for income taxes | 51,273 | 50,125 |
Net income | 131,503 | 84,640 |
Less: Net income attributable to non-controlling interests | 1,906 | 2,473 |
Net income attributable to CBRE Group, Inc. | $ 129,597 | $ 82,167 |
Basic income per share: | ||
Net income per share attributable to CBRE Group, Inc. | $ 0.38 | $ 0.25 |
Weighted average shares outstanding for basic income per share | 336,907,836 | 333,992,935 |
Diluted income per share: | ||
Net income per share attributable to CBRE Group, Inc. | $ 0.38 | $ 0.24 |
Weighted average shares outstanding for diluted income per share | 339,690,579 | 337,506,232 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 131,503 | $ 84,640 |
Other comprehensive income: | ||
Foreign currency translation gain | 51,089 | 16,594 |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 1,508 | 1,743 |
Unrealized gains (losses) on interest rate swaps, net of tax | 294 | (2,909) |
Unrealized holding gains (losses) on available for sale securities, net of tax | 923 | (929) |
Other, net | (6) | (57) |
Total other comprehensive income | 53,808 | 14,442 |
Comprehensive income | 185,311 | 99,082 |
Less: Comprehensive income attributable to non-controlling interests | 1,927 | 2,595 |
Comprehensive income attributable to CBRE Group, Inc. | $ 183,384 | $ 96,487 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 131,503 | $ 84,640 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 94,037 | 86,994 |
Amortization of financing costs | 2,439 | 2,648 |
Gain on sale of loans, servicing rights and other assets | (37,939) | (29,010) |
Net realized and unrealized gain from investments | (4,115) | (3,215) |
Equity income from unconsolidated subsidiaries | (15,018) | (57,301) |
(Recovery of) provision for doubtful accounts | (928) | 3,420 |
Compensation expense for equity awards | 15,411 | 12,594 |
Distribution of earnings from unconsolidated subsidiaries | 3,206 | 11,017 |
Tenant concessions received | 3,776 | 1,755 |
Purchase of trading securities | (22,986) | (20,815) |
Proceeds from sale of trading securities | 15,270 | 22,688 |
Decrease in receivables | 146,191 | 145,976 |
Increase in prepaid expenses and other assets | (50,164) | (29,731) |
Decrease in accounts payable and accrued expenses | (133,231) | (148,316) |
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing | (491,251) | (385,314) |
Decrease (increase) in income taxes receivable/payable | 13,193 | (34,159) |
(Decrease) increase in other liabilities | (7,876) | 8,195 |
Other operating activities, net | (3,548) | (706) |
Net cash used in operating activities | (342,030) | (328,640) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (23,735) | (33,468) |
Acquisition of businesses (other than Global Workplace Solutions (GWS)), including net assets acquired, intangibles and goodwill | (21,204) | (3,298) |
Acquisition of GWS, including net assets acquired, intangibles and goodwill | (21,900) | |
Contributions to unconsolidated subsidiaries | (14,567) | (10,923) |
Distributions from unconsolidated subsidiaries | 15,995 | 55,571 |
Proceeds from the sale of servicing rights and other assets | 11,365 | 5,603 |
Decrease in restricted cash | 10,463 | 9,771 |
Purchase of available for sale securities | (7,289) | (7,716) |
Proceeds from the sale of available for sale securities | 7,220 | 9,969 |
Other investing activities, net | 1,227 | (2,303) |
Net cash (used in) provided by investing activities | (20,525) | 1,306 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of senior term loans | (5,625) | |
Proceeds from revolving credit facility | 266,000 | 565,000 |
Repayment of revolving credit facility | (146,000) | (285,000) |
Repayment of notes payable on real estate held for investment | (435) | |
Proceeds from notes payable on real estate held for sale and under development | 1,711 | 12,427 |
Repayment of notes payable on real estate held for sale and under development | (2,744) | (4,102) |
Units repurchased for payment of taxes on equity awards | (1,900) | (4,252) |
Non-controlling interest contributions | 1,574 | 27 |
Non-controlling interest distributions | (744) | (1,138) |
Payment of financing costs | (4,787) | |
Other financing activities, net | 308 | (236) |
Net cash provided by financing activities | 117,770 | 272,314 |
Effect of currency exchange rate changes on cash and cash equivalents | 15,490 | 3,846 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (229,295) | (51,174) |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 762,576 | 540,403 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 533,281 | 489,229 |
Cash paid during the period for: | ||
Interest | 52,027 | 54,205 |
Income taxes, net | $ 37,333 | $ 82,978 |
Consolidated Statement of Equit
Consolidated Statement of Equity (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Class A Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] |
Beginning balance at Dec. 31, 2016 | $ 3,057,245 | $ 3,373 | $ 1,145,226 | $ 2,656,906 | $ (791,018) | $ 42,758 |
Net income | 131,503 | 129,597 | 1,906 | |||
Compensation expense for equity awards | 15,411 | 15,411 | ||||
Units repurchased for payment of taxes on equity awards | (1,900) | (1,900) | ||||
Foreign currency translation gain | 51,089 | 51,068 | 21 | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 1,508 | 1,508 | ||||
Unrealized gains on interest rate swaps, net of tax | 294 | 294 | ||||
Unrealized holding gains on available for sale securities, net of tax | 923 | 923 | ||||
Contributions from non-controlling interests | 1,574 | 1,574 | ||||
Distributions to non-controlling interests | (744) | (744) | ||||
Other | 1,336 | 6 | 557 | (6) | 779 | |
Ending balance at Mar. 31, 2017 | $ 3,258,239 | $ 3,379 | $ 1,159,294 | $ 2,786,503 | $ (737,231) | $ 46,294 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Readers of this Quarterly Report on Form 10-Q (Quarterly Report) should refer to the audited financial statements and notes to consolidated financial statements of CBRE Group, Inc., a Delaware corporation (which may be referred to in these financial statements as the “company,” “we,” “us” and “our”), for the year ended December 31, 2016, which are included in our 2016 Annual Report on Form 10-K (2016 Annual Report), filed with the United States Securities and Exchange Commission (SEC) and also available on our website ( www.cbre.com The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (GAAP) for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, and reported amounts of revenue and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2017. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” In March 2016, the FASB issued ASU 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” In October 2016, the FASB issued ASU 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control.” In December 2016, the FASB issued ASU 2016-19, “Technical Corrections and Improvements.” In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” Recent Accounting Pronouncements Pending Adoption The FASB has recently issued five ASUs related to revenue recognition (“new revenue recognition guidance”), all of which will become effective for the company on January 1, 2018. The ASUs issued are: (1) in May 2014, ASU 2014-09, “Revenue from Contracts with Customers (Topic 606);” n March 2016, ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net);” (3) in “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing;” (4) in “ Revenue from Contracts with Customers (Topic 606): Narrow-scope Improvements and Practical Expedients;” and (5) in December 2016, ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue From Contracts with Customers.” ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. clarifies guidance in certain narrow areas and adds some practical expedients. We plan to adopt the new revenue recognition guidance in the first quarter of 2018 and are evaluating the application of a transition method. We continue to evaluate the impact that adoption of these updates will have on our consolidated financial statements and related disclosures. Based on our initial assessment, the impact of the application of the new revenue recognition guidance will likely result in an acceleration of some revenues that are based, in part, on future contingent events. For example, some brokerage revenues from leasing commissions in various countries where we operate will get recognized earlier. Under current GAAP, a portion of these commissions are deferred until a future contingency is resolved (e.g. tenant move-in or payment of first month’s rent). Under the new revenue guidance, CBRE’s performance obligation will be typically satisfied at lease signing and therefore the portion of the commission that is contingent on a future event will likely be recognized earlier if deemed not subject to significant reversal. We are currently evaluating the impact of principal versus agent guidance in relation to third-party costs which are billed to clients in association with facilities management services and the impact on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” In February 2017, the FASB issued ASU 2017-05, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” In March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Variable Interest Entities (VIEs) | 3. Variable Interest Entities (VIEs) We hold variable interests in certain VIEs in our Global Investment Management and Development Services segments which are not consolidated as it was determined that we are not the primary beneficiary. Our involvement with these entities is in the form of equity co-investments and fee arrangements. As of March 31, 2017 and December 31, 2016, our maximum exposure to loss related to the VIEs which are not consolidated was as follows (dollars in thousands): March 31, December 31, 2017 2016 Investments in unconsolidated subsidiaries $ 31,651 $ 31,041 Other current assets 3,403 3,314 Co-investment commitments 164 168 Maximum exposure to loss $ 35,218 $ 34,523 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The “Fair Value Measurements and Disclosures” • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. There were no significant transfers in or out of Level 1 and Level 2 during the three months ended March 31, 2017 and 2016. There have been no significant changes to the valuation techniques and inputs used to develop the recurring fair value measurements from those disclosed in our 2016 Annual Report. The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (dollars in thousands): As of March 31, 2017 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 8,973 $ — $ — $ 8,973 Debt securities issued by U.S. federal agencies — 4,830 — 4,830 Corporate debt securities — 17,407 — 17,407 Asset-backed securities — 1,842 — 1,842 Collateralized mortgage obligations — 983 — 983 Total debt securities 8,973 25,062 — 34,035 Equity securities 24,540 — — 24,540 Total available for sale securities 33,513 25,062 — 58,575 Trading securities 64,423 — — 64,423 Warehouse receivables — 685,133 — 685,133 Foreign currency exchange forward contracts — 1,352 — 1,352 Total assets at fair value $ 97,936 $ 711,547 $ — $ 809,483 Liabilities Interest rate swaps $ — $ 10,341 $ — $ 10,341 Securities sold, not yet purchased 4,111 — — 4,111 Total liabilities at fair value $ 4,111 $ 10,341 $ — $ 14,452 As of December 31, 2016 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 8,485 $ — $ — $ 8,485 Debt securities issued by U.S. federal agencies — 5,046 — 5,046 Corporate debt securities — 17,094 — 17,094 Asset-backed securities — 2,695 — 2,695 Collateralized mortgage obligations — 1,010 — 1,010 Total debt securities 8,485 25,845 — 34,330 Equity securities 22,744 — — 22,744 Total available for sale securities 31,229 25,845 — 57,074 Trading securities 52,629 — — 52,629 Warehouse receivables — 1,276,047 — 1,276,047 Foreign currency exchange forward contracts — 1,471 — 1,471 Total assets at fair value $ 83,858 $ 1,303,363 $ — $ 1,387,221 Liabilities Interest rate swaps $ — $ 13,162 $ — $ 13,162 Securities sold, not yet purchased 3,591 — — 3,591 Total liabilities at fair value $ 3,591 $ 13,162 $ — $ 16,753 There were no significant non-recurring fair value measurements recorded during the three months ended March 31, 2017 and 2016. FASB ASC Topic 825, “Financial Instruments” • Cash and Cash Equivalents and – These balances include cash and cash equivalents as well as restricted cash with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments. • Receivables, less Allowance for Doubtful Accounts – Due to their short-term nature, fair value approximates carrying value. • Warehouse Receivables – These balances are carried at fair value based on market prices at the balance sheet date. • Trading and – These investments are carried at their fair value. • Foreign Currency Exchange Forward Contracts – These assets and liabilities are carried at their fair value as calculated by using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. • Securities Sold, not yet Purchased – These liabilities are carried at their fair value. • Short-Term Borrowings – The majority of this balance represents outstanding amounts under our warehouse lines of credit of our wholly-owned subsidiary, CBRE Capital Markets, Inc. (CBRE Capital Markets), and our revolving credit facility. Due to the short-term nature and variable interest rates of these instruments, fair value approximates carrying value (see Note 6). • Senior Term Loans – Based upon information from third-party banks (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our senior term loans was approximately $751.4 million at both March 31, 2017 and December 31, 2016. Their actual carrying value, net of unamortized debt issuance costs, totaled $744.9 million and $744.3 million at March 31, 2017 and December 31, 2016, respectively (see Note 6). • Interest Rate Swaps – These liabilities are carried at their fair value as calculated by using widely-accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. • Senior Notes – Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair values of our 5.00% senior notes, 4.875% senior notes and 5.25% senior notes were $835.5 million, $626.8 million and $452.5 million, respectively, at March 31, 2017 and $827.6 million, $607.0 million and $439.3 million, respectively, at December 31, 2016. The actual carrying value of our 5.00% senior notes, 4.875% senior notes and 5.25% senior notes, net of unamortized debt issuance costs, totaled $790.7 million, $591.4 million and $422.2 million, respectively, at March 31, 2017 and $790.4 million, $591.2 million and $422.2 million, respectively, at December 31, 2016. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries | 5. Investments in Unconsolidated Subsidiaries Investments in unconsolidated subsidiaries are accounted for under the equity method of accounting. Our investment ownership percentages in equity method investments vary, generally ranging up to 5.0% in our Global Investment Management segment, up to 10.0% in our Development Services segment, and up to 50.0% in our other business segments. Combined condensed financial information for the entities actually accounted for using the equity method is as follows (dollars in thousands): Three Months Ended March 31, 2017 2016 Global Investment Management Revenue $ 267,151 $ 232,603 Operating income $ 15,478 $ 623 Net income (loss) $ 4,090 $ (21,875 ) Development Services Revenue $ 21,526 $ 12,658 Operating income $ 20,561 $ 120,910 Net income $ 16,097 $ 118,461 Other Revenue $ 25,858 $ 28,251 Operating income $ 2,179 $ 6,182 Net income $ 2,148 $ 6,194 Total Revenue $ 314,535 $ 273,512 Operating income $ 38,218 $ 127,715 Net income $ 22,335 $ 102,780 |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | 6. Long-Term Debt and Short-Term Borrowings Long-Term Debt Long-term debt consists of the following (dollars in thousands): March 31, December 31, 2017 2016 Senior term loans, with interest ranging from 1.77% to 2.38%, due quarterly through 2022 $ 751,875 $ 751,875 5.00% senior notes due in 2023 800,000 800,000 4.875% senior notes due in 2026, net of unamortized discount 596,001 595,912 5.25% senior notes due in 2025, net of unamortized premium 426,454 426,500 Other 14 14 Total long-term debt 2,574,344 2,574,301 Less: current maturities of long-term debt (12 ) (11 ) Less: unamortized debt issuance costs (25,074 ) (26,164 ) Total long-term debt, net of current maturities $ 2,549,258 $ 2,548,126 On January 9, 2015, CBRE Services, Inc. (CBRE Services), our wholly-owned subsidiary, entered into an amended and restated credit agreement (2015 Credit Agreement) with a syndicate of banks jointly led by Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC and Credit Suisse AG. On March 21, 2016, CBRE Services executed an amendment to the 2015 Credit Agreement that, among other things, extended the maturity on the revolving credit facility to March 2021 and increased the borrowing capacity under the revolving credit facility by $200.0 million. Our 2015 Credit Agreement is an unsecured credit facility that is jointly and severally guaranteed by us and substantially all of our material domestic subsidiaries. As of March 31, 2017, the 2015 Credit Agreement provided for the following: (1) a $2.8 billion revolving credit facility, which includes the capacity to obtain letters of credit and swingline loans and matures on March 21, 2021; (2) a $500.0 million tranche A term loan facility requiring quarterly principal payments, which began on June 30, 2015 and continue through maturity on January 9, 2020; (3) a $270.0 million tranche B-1 term loan facility requiring quarterly principal payments, which began on December 31, 2015 and continue through maturity on September 3, 2020; and (4) a $130.0 million tranche B-2 term loan facility requiring quarterly principal payments, which began on December 31, 2015 and continue through maturity on September 3, 2022. Our 2015 Credit Agreement contains restrictive covenants that, among other things, limit our ability to incur additional indebtedness, pay dividends or make distributions to stockholders, repurchase capital stock or debt, make investments, sell assets or subsidiary stock, create or permit liens on assets, engage in transactions with affiliates, enter into sale/leaseback transactions, issue subsidiary equity and enter into consolidations or mergers. Our 2015 Credit Agreement also requires us to maintain a minimum coverage ratio of EBITDA (as defined in the 2015 Credit Agreement) to total interest expense of 2.00x and a maximum leverage ratio of total debt less available cash to EBITDA (as defined in the 2015 Credit Agreement) of 4.25x as of the end of each fiscal quarter. On this basis, our coverage ratio of EBITDA to total interest expense was 13.08x for the trailing twelve months ended March 31, 2017, and our leverage ratio of total debt less available cash to EBITDA was 1.35x as of March 31, 2017. The indentures governing our 5.00% senior notes, 4.875% senior notes and 5.25% senior notes contain restrictive covenants that, among other things, limit our ability to create or permit liens on assets securing indebtedness, entering into sale/leaseback transactions and entering into consolidations or mergers. Short-Term Borrowings Revolving Credit Facility As of March 31, 2017, we had $120.0 million of revolving credit facility principal outstanding under our 2015 Credit Agreement with a weighted average annual interest rate of 4.0% and which was included in short-term borrowings in the accompanying consolidated balance sheets. As of March 31, 2017, letters of credit totaling $2.0 million were outstanding under our revolving credit facility. These letters of credit, which reduce the amount we may borrow under our revolving credit facility, were primarily issued in the ordinary course of business. As of December 31, 2016, no amounts were outstanding under our revolving credit facility other than letters of credit totaling $2.0 million. Warehouse Lines of Credit CBRE Capital Markets has warehouse lines of credit with third-party lenders for the purpose of funding mortgage loans that will be resold, and a funding arrangement with Federal National Mortgage Association (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. During the three months ended March 31, 2017, we had a maximum of $1.3 billion of warehouse lines of credit principal outstanding. As of March 31, 2017 and December 31, 2016, we had $671.5 million and $1.3 billion, respectively, of warehouse lines of credit principal outstanding, which are included in short-term borrowings in the accompanying consolidated balance sheets. Additionally, we had $685.1 million and $1.3 billion of mortgage loans held for sale (warehouse receivables) as of March 31, 2017 and December 31, 2016, respectively, included in the accompanying consolidated balance sheets, which substantially represented mortgage loans funded through the lines of credit that were either under commitment to be purchased by Federal Home Loan Mortgage Corporation (Freddie Mac) or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Government National Mortgage Association (Ginnie Mae) mortgage backed securities that will be secured by the underlying loans. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies We are a party to a number of pending or threatened lawsuits arising out of, or incident to, our ordinary course of business. We believe that any losses in excess of the amounts accrued therefor as liabilities on our financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our financial statements if one or more matters are resolved in a particular period in an amount materially in excess of what we anticipated. In January 2008, CBRE Multifamily Capital, Inc. (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 in selected cases, is subject to sharing up to one-third of any losses on loans originated under the DUS Program. CBRE MCI has funded loans subject to such loss sharing arrangements with unpaid principal balances of $17.4 billion at March 31, 2017. 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 March 31, 2017 and December 31, 2016, CBRE MCI had a $48.0 million and a $45.0 million, respectively, letter of credit under this reserve arrangement, and had provided approximately $29.6 million and $28.2 million, respectively, of loan loss accruals. Fannie Mae’s recourse under the DUS Program is limited to the assets of CBRE MCI, which assets totaled approximately $552.9 million (including $334.6 million of warehouse receivables, a substantial majority of which are pledged against warehouse lines of credit and are therefore not available to Fannie Mae) at March 31, 2017. CBRE Capital Markets participates in Freddie Mac’s Multifamily Small Balance Loan (SBL) Program. Under the SBL program, CBRE Capital Markets has certain repurchase and loss reimbursement obligations. These obligations are for the period from origination of the loan to the securitization date. CBRE Capital Markets must post a cash reserve or other acceptable collateral to provide for sufficient capital in the event the obligations are triggered. As of March 31, 2017, CBRE Capital Markets had posted a $5.0 million letter of credit under this reserve arrangement. We had outstanding letters of credit totaling $59.0 million as of March 31, 2017, 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. CBRE MCI’s letters of credit totaling $53.0 million as of March 31, 2017 referred to in the preceding paragraphs represented the majority of the $59.0 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 varying dates through April 2018. We had guarantees totaling $56.2 million as of March 31, 2017, excluding guarantees related to pension liabilities, consolidated indebtedness and other obligations for which we have outstanding liabilities already accrued on our consolidated balance sheet, and excluding guarantees related to operating leases. The $56.2 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 March 31, 2017, we had issued numerous non-recourse carveout, completion and budget guarantees relating to development projects for the benefit of third parties. These guarantees are commonplace in our industry and are made by us in the ordinary course of our Development Services business. Non-recourse carveout guarantees generally require that our project-entity borrower not commit specified improper acts, with us potentially liable for all or a portion of such entity’s indebtedness or other damages suffered by the lender if those acts occur. Completion and budget guarantees generally require us to complete construction of the relevant project within a specified timeframe and/or within a specified budget, with us potentially being liable for costs to complete in excess of such timeframe or budget. However, we generally use “guaranteed maximum price” contracts with reputable, bondable general contractors with respect to projects for which we provide these guarantees. These contracts are intended to pass the risk to such contractors. While there can be no assurance, we do not expect to incur any material losses under these guarantees. An important part of the strategy for our Global Investment Management business involves investing our capital in certain real estate investments with our clients. These co-investments generally total up to 2.0% of the equity in a particular fund. As of March 31, 2017, we had aggregate commitments of $24.2 million to fund future co-investments. Additionally, an important part of our Development Services business strategy is to invest in unconsolidated real estate subsidiaries as a principal (in most cases co-investing with our clients). As of March 31, 2017, we had committed to fund $23.4 million of additional capital to these unconsolidated subsidiaries. |
Income Per Share Information
Income Per Share Information | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Income Per Share Information | 8. Income Per Share Information The calculations of basic and diluted income per share attributable to CBRE Group, Inc. shareholders are as follows (dollars in thousands, except share data): Three Months Ended March 31, 2017 2016 Basic Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 129,597 $ 82,167 Weighted average shares outstanding for basic income per share 336,907,836 333,992,935 Basic income per share attributable to CBRE Group, Inc. shareholders $ 0.38 $ 0.25 Diluted Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 129,597 $ 82,167 Weighted average shares outstanding for basic income per share 336,907,836 333,992,935 Dilutive effect of contingently issuable shares 2,774,785 3,469,041 Dilutive effect of stock options 7,958 44,256 Weighted average shares outstanding for diluted income per share 339,690,579 337,506,232 Diluted income per share attributable to CBRE Group, Inc. shareholders $ 0.38 $ 0.24 For the three months ended March 31, 2017 and 2016, 1,170,967 and 1,562,323, 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. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | 9. Segments We report our operations through the following segments: (1) Americas; (2) Europe, Middle East and Africa (EMEA); (3) Asia Pacific; (4) Global Investment Management and (5) Development Services. The Americas segment is our largest segment of operations and provides a comprehensive range of services throughout the U.S. and in the largest regions of Canada and key markets in Latin America. The primary services offered consist of the following: property sales, property leasing, mortgage services, appraisal and valuation, property management and occupier outsourcing services. Our EMEA and Asia Pacific segments generally provide services similar to the Americas business segment. The EMEA segment has operations primarily in Europe, while the Asia Pacific segment has operations in Asia, Australia and New Zealand. Our Global Investment Management business provides investment management services to clients seeking to generate returns and diversification through direct and indirect investments in real estate in North America, Europe and Asia Pacific. Our Development Services business consists of real estate development and investment activities primarily in the U.S. Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended March 31, 2017 2016 (1) Revenue Americas $ 1,692,646 $ 1,587,875 EMEA 844,188 840,347 Asia Pacific 341,145 311,359 Global Investment Management 89,566 90,380 Development Services 13,659 16,773 Total revenue $ 2,981,204 $ 2,846,734 Adjusted EBITDA Americas $ 220,400 $ 187,214 EMEA 33,864 27,811 Asia Pacific 20,281 12,868 Global Investment Management 25,859 22,915 Development Services 2,804 31,875 Total Adjusted EBITDA $ 303,208 $ 282,683 (1) In 2017, we changed the presentation of the operating results of one of our emerging businesses among our regional services reporting segments. Prior year amounts have been reclassified to conform with the current-year presentation. This change had no impact on our consolidated results. Adjusted EBITDA is the measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. EBITDA represents earnings before net interest expense, income taxes, depreciation and amortization. Amounts shown for adjusted EBITDA further remove (from EBITDA) the impact of certain cash and non-cash charges related to acquisitions, cost-elimination expenses and certain carried interest incentive compensation (reversal) expense to align with the timing of associated revenue. Adjusted EBITDA is calculated as follows (dollars in thousands): Three Months Ended March 31, 2017 2016 (1) Net income attributable to CBRE Group, Inc. $ 129,597 $ 82,167 Add: Depreciation and amortization 94,037 86,994 Interest expense 34,010 34,790 Provision for income taxes 51,273 50,125 Less: Interest income 2,411 1,459 EBITDA 306,506 252,617 Adjustments: Integration and other costs related to acquisitions 11,943 17,173 Cost-elimination expenses (2) - 12,403 Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue (15,241 ) 490 Adjusted EBITDA $ 303,208 $ 282,683 (1) In 2017, we changed the presentation of the operating results of one of our emerging businesses among our regional services reporting segments. Prior year amounts have been reclassified to conform with the current-year presentation. This change had no impact on our consolidated results. ( 2 ) Represents cost-elimination expenses relating to a program initiated in the fourth quarter of 2015 and completed in the third quarter of 2016 (our cost-elimination project) to reduce the company’s global cost structure after several years of significant revenue and related cost growth. Cost-elimination expenses incurred during the three months ended March 31, 2016 consisted of $11.8 million of severance costs related to headcount reductions in connection with the program and $0.6 million of third-party contract termination costs. |
Guarantor and Nonguarantor Fina
Guarantor and Nonguarantor Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Guarantor and Nonguarantor Financial Statements | 10. Guarantor and Nonguarantor Financial Statements The following condensed consolidating financial information includes condensed consolidating balance sheets as of March 31, 2017 and December 31, 2016 and condensed consolidating statements of operations, condensed consolidating statements of comprehensive income and condensed consolidating statements of cash flows for the three months ended March 31, 2017 and 2016 of: • CBRE Group, Inc., as the parent; CBRE Services, as the subsidiary issuer; the guarantor subsidiaries; the nonguarantor subsidiaries; • Elimination entries necessary to consolidate CBRE Group, Inc., as the parent, with CBRE Services and its guarantor and nonguarantor subsidiaries; and • CBRE Group, Inc., on a consolidated basis. Investments in consolidated subsidiaries are presented using the equity method of accounting. The principal elimination entries eliminate investments in consolidated subsidiaries and intercompany balances and transactions. CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2017 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 8,678 $ 40,252 $ 484,344 $ − $ 533,281 Restricted cash — — 4,968 54,078 — 59,046 Receivables, net — — 996,102 1,503,013 — 2,499,115 Warehouse receivables (1) — — 350,501 334,632 — 685,133 Income taxes receivable — 1,375 11,630 43,808 (1,375 ) 55,438 Prepaid expenses — − 84,874 127,462 — 212,336 Other current assets — 1,302 73,776 126,033 — 201,111 Total Current Assets 7 11,355 1,562,103 2,673,370 (1,375 ) 4,245,460 Property and equipment, net — — 384,136 167,497 — 551,633 Goodwill — — 1,682,177 1,337,408 — 3,019,585 Other intangible assets, net — — 778,857 624,405 — 1,403,262 Investments in unconsolidated subsidiaries — — 196,497 45,989 — 242,486 Investments in consolidated subsidiaries 4,427,377 4,429,140 2,421,387 — (11,277,904 ) — Intercompany loan receivable — 2,653,458 700,000 — (3,353,458 ) — Deferred tax assets, net — — 52,861 94,653 (52,861 ) 94,653 Other assets, net — 20,921 243,284 105,828 − 370,033 Total Assets $ 4,427,384 $ 7,114,874 $ 8,021,302 $ 5,049,150 $ (14,685,598 ) $ 9,927,112 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 7,275 $ 381,816 $ 931,493 $ — $ 1,320,584 Compensation and employee benefits payable — 626 345,922 373,419 — 719,967 Accrued bonus and profit sharing — — 210,041 257,676 — 467,717 Income taxes payable 109 — 79,086 32,074 (1,375 ) 109,894 Short-term borrowings: — Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) (1) — — 344,831 326,622 — 671,453 Revolving credit facility — 120,000 — — — 120,000 Other — — 16 — — 16 Total short-term borrowings — 120,000 344,847 326,622 — 791,469 Current maturities of long-term debt — - — 12 — 12 Other current liabilities — 1,833 41,942 19,762 — 63,537 Total Current Liabilities 109 129,734 1,403,654 1,941,058 (1,375 ) 3,473,180 Long-Term Debt, net: Long-term debt, net — 2,549,256 — 2 — 2,549,258 Intercompany loan payable 1,215,330 — 1,886,440 251,688 (3,353,458 ) − Total Long-Term Debt, net 1,215,330 2,549,256 1,886,440 251,690 (3,353,458 ) 2,549,258 Deferred tax liabilities, net — — — 131,003 (52,861 ) 78,142 Non-current tax liabilities — — 38,673 2,097 — 40,770 Other liabilities — 8,507 263,395 255,621 — 527,523 Total Liabilities 1,215,439 2,687,497 3,592,162 2,581,469 (3,407,694 ) 6,668,873 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 3,211,945 4,427,377 4,429,140 2,421,387 (11,277,904 ) 3,211,945 Non-controlling interests — — — 46,294 — 46,294 Total Equity 3,211,945 4,427,377 4,429,140 2,467,681 (11,277,904 ) 3,258,239 Total Liabilities and Equity $ 4,427,384 $ 7,114,874 $ 8,021,302 $ 5,049,150 $ (14,685,598 ) $ 9,927,112 (1) Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 4.875% senior notes, 5.25% senior notes and our 2015 Credit Agreement, a substantial majority of warehouse receivables funded under JP Morgan Chase Bank, N.A. (JP Morgan), Bank of America (BofA), TD Bank, N.A. (TD Bank), Fannie Mae ASAP and Capital One, N.A. (Capital One) lines of credit are pledged to JP Morgan, BofA, TD Bank, Fannie Mae and Capital One. CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2016 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 16,889 $ 264,121 $ 481,559 $ − $ 762,576 Restricted cash — — 6,967 61,869 — 68,836 Receivables, net — — 943,028 1,662,574 — 2,605,602 Warehouse receivables (1) — — 687,454 588,593 — 1,276,047 Income taxes receivable 1,915 17,364 8,170 37,456 (19,279 ) 45,626 Prepaid expenses — — 78,296 105,811 — 184,107 Other current assets — 1,421 64,576 113,659 — 179,656 Total Current Assets 1,922 35,674 2,052,612 3,051,521 (19,279 ) 5,122,450 Property and equipment, net — — 395,749 165,007 — 560,756 Goodwill — — 1,669,683 1,311,709 — 2,981,392 Other intangible assets, net — — 793,525 617,514 — 1,411,039 Investments in unconsolidated subsidiaries — — 189,455 42,783 — 232,238 Investments in consolidated subsidiaries 4,226,629 4,076,265 2,314,549 — (10,617,443 ) — Intercompany loan receivable — 2,684,421 700,000 — (3,384,421 ) — Deferred tax assets, net — — 72,325 90,334 (57,335 ) 105,324 Other assets, net — 22,229 240,707 103,452 — 366,388 Total Assets $ 4,228,551 $ 6,818,589 $ 8,428,605 $ 5,382,320 $ (14,078,478 ) $ 10,779,587 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 30,049 $ 409,470 $ 1,006,919 $ — $ 1,446,438 Compensation and employee benefits payable — 626 402,719 369,577 — 772,922 Accrued bonus and profit sharing — — 506,715 383,606 — 890,321 Income taxes payable — — 40,946 36,684 (19,279 ) 58,351 Short-term borrowings: — Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) (1) — — 680,473 574,180 — 1,254,653 Other — — 16 — — 16 Total short-term borrowings — — 680,489 574,180 — 1,254,669 Current maturities of long-term debt — — — 11 — 11 Other current liabilities — — 81,590 21,127 — 102,717 Total Current Liabilities — 30,675 2,121,929 2,392,104 (19,279 ) 4,525,429 Long-Term Debt, net: Long-term debt, net — 2,548,123 — 3 — 2,548,126 Intercompany loan payable 1,214,064 — 1,916,675 253,682 (3,384,421 ) — Total Long-Term Debt, net 1,214,064 2,548,123 1,916,675 253,685 (3,384,421 ) 2,548,126 Deferred tax liabilities, net — — — 128,054 (57,335 ) 70,719 Non-current tax liabilities — — 53,422 620 — 54,042 Other liabilities — 13,162 260,314 250,550 — 524,026 Total Liabilities 1,214,064 2,591,960 4,352,340 3,025,013 (3,461,035 ) 7,722,342 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 3,014,487 4,226,629 4,076,265 2,314,549 (10,617,443 ) 3,014,487 Non-controlling interests — — — 42,758 — 42,758 Total Equity 3,014,487 4,226,629 4,076,265 2,357,307 (10,617,443 ) 3,057,245 Total Liabilities and Equity $ 4,228,551 $ 6,818,589 $ 8,428,605 $ 5,382,320 $ (14,078,478 ) $ 10,779,587 (1) Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 4.875% senior notes, 5.25% senior notes and our 2015 Credit Agreement, a substantial majority of warehouse receivables funded under BofA, Fannie Mae ASAP, JP Morgan, Capital One and TD Bank lines of credit are pledged to BofA, Fannie Mae, JP Morgan, Capital One and TD Bank. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2017 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total Revenue $ — $ — $ 1,563,066 $ 1,418,138 $ − $ 2,981,204 Costs and expenses: Cost of services — — 1,070,384 1,016,695 — 2,087,079 Operating, administrative and other (284 ) 349 315,756 290,410 — 606,231 Depreciation and amortization — — 56,730 37,307 — 94,037 Total costs and expenses (284 ) 349 1,442,870 1,344,412 — 2,787,347 Gain on disposition of real estate — — 226 1,159 — 1,385 Operating income (loss) 284 (349 ) 120,422 74,885 — 195,242 Equity income from unconsolidated subsidiaries — — 14,370 648 — 15,018 Other income — — 414 3,701 — 4,115 Interest income — 29,901 1,647 764 (29,901 ) 2,411 Interest expense — 33,146 22,148 8,617 (29,901 ) 34,010 Royalty and management service (income) expense — — (5,802 ) 5,802 — — Income from consolidated subsidiaries 129,422 131,641 41,989 — (303,052 ) — Income before provision for (benefit of) income taxes 129,706 128,047 162,496 65,579 (303,052 ) 182,776 Provision for (benefit of) income taxes 109 (1,375 ) 30,855 21,684 — 51,273 Net income 129,597 129,422 131,641 43,895 (303,052 ) 131,503 Less: Net income attributable to non-controlling interests — — — 1,906 — 1,906 Net income attributable to CBRE Group, Inc. $ 129,597 $ 129,422 $ 131,641 $ 41,989 $ (303,052 ) $ 129,597 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2016 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total Revenue $ — $ — $ 1,497,499 $ 1,349,235 $ — $ 2,846,734 Costs and expenses: Cost of services — — 1,024,563 989,050 — 2,013,613 Operating, administrative and other 1,426 7,524 342,870 291,546 — 643,366 Depreciation and amortization — — 54,731 32,263 — 86,994 Total costs and expenses 1,426 7,524 1,422,164 1,312,859 — 2,743,973 Gain on disposition of real estate — — 3,659 1,160 — 4,819 Operating (loss) income (1,426 ) (7,524 ) 78,994 37,536 — 107,580 Equity income from unconsolidated subsidiaries — — 56,265 1,036 — 57,301 Other (loss) income — — (432 ) 3,647 — 3,215 Interest income — 32,473 917 542 (32,473 ) 1,459 Interest expense — 33,627 24,583 9,053 (32,473 ) 34,790 Royalty and management service (income) expense — — (7,428 ) 7,428 − — Income from consolidated subsidiaries 83,047 88,400 3,532 — (174,979 ) — Income before (benefit of) provision for income taxes 81,621 79,722 122,121 26,280 (174,979 ) 134,765 (Benefit of) provision for income taxes (546 ) (3,325 ) 33,721 20,275 — 50,125 Net income 82,167 83,047 88,400 6,005 (174,979 ) 84,640 Less: Net income attributable to non-controlling interests — — — 2,473 — 2,473 Net income attributable to CBRE Group, Inc. $ 82,167 $ 83,047 $ 88,400 $ 3,532 $ (174,979 ) $ 82,167 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2017 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total Net income $ 129,597 $ 129,422 $ 131,641 $ 43,895 $ (303,052 ) $ 131,503 Other comprehensive (loss) income: Foreign currency translation gain — — — 51,089 — 51,089 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 1,508 — — — 1,508 Unrealized gains on interest rate swaps, net — 294 — — — 294 Unrealized holding gains on available for sale securities, net — — 829 94 — 923 Other, net (5 ) — (1 ) — — (6 ) Total other comprehensive (loss) income (5 ) 1,802 828 51,183 — 53,808 Comprehensive income 129,592 131,224 132,469 95,078 (303,052 ) 185,311 Less: Comprehensive income attributable to non-controlling interests — — — 1,927 — 1,927 Comprehensive income attributable to CBRE Group, Inc. $ 129,592 $ 131,224 $ 132,469 $ 93,151 $ (303,052 ) $ 183,384 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2016 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total Net income $ 82,167 $ 83,047 $ 88,400 $ 6,005 $ (174,979 ) $ 84,640 Other comprehensive (loss) income: Foreign currency translation gain — — — 16,594 — 16,594 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 1,743 — — — 1,743 Unrealized losses on interest rate swaps, net — (2,909 ) — — — (2,909 ) Unrealized holding (losses) gains on available for sale securities, net — — (1,089 ) 160 — (929 ) Other, net — — (57 ) − — (57 ) Total other comprehensive (loss) income — (1,166 ) (1,146 ) 16,754 — 14,442 Comprehensive income 82,167 81,881 87,254 22,759 (174,979 ) 99,082 Less: Comprehensive income attributable to non-controlling interests — — — 2,595 — 2,595 Comprehensive income attributable to CBRE Group, Inc. $ 82,167 $ 81,881 $ 87,254 $ 20,164 $ (174,979 ) $ 96,487 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 17,610 $ (6,445 ) $ (326,667 ) $ (26,528 ) $ (342,030 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (17,095 ) (6,640 ) (23,735 ) Acquisition of businesses, including net assets acquired, intangibles and goodwill — — (20,578 ) (626 ) (21,204 ) Contributions to unconsolidated subsidiaries — — (11,086 ) (3,481 ) (14,567 ) Distributions from unconsolidated subsidiaries — — 15,796 199 15,995 Proceeds from the sale of servicing rights and other assets — — 6,009 5,356 11,365 Decrease in restricted cash — — 1,999 8,464 10,463 Purchase of available for sale securities — — (7,289 ) — (7,289 ) Proceeds from the sale of available for sale securities — — 7,220 — 7,220 Other investing activities, net — — 1,275 (48 ) 1,227 Net cash (used in) provided by investing activities — — (23,749 ) 3,224 (20,525 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving credit facility — 266,000 — — 266,000 Repayment of revolving credit facility — (146,000 ) — — (146,000 ) Repayment of notes payable on real estate held for investment — - — (435 ) (435 ) Proceeds from notes payable on real estate held for sale and under development — — — 1,711 1,711 Repayment of notes payable on real estate held for sale and under development — — — (2,744 ) (2,744 ) Units repurchased for payment of taxes on equity awards (1,900 ) — — — (1,900 ) Non-controlling interest contributions — — — 1,574 1,574 Non-controlling interest distributions — — — (744 ) (744 ) (Increase) decrease in intercompany receivables, net (16,020 ) (121,766 ) 126,547 11,239 — Other financing activities, net 310 — — (2 ) 308 Net cash (used in) provided by financing activities (17,610 ) (1,766 ) 126,547 10,599 117,770 Effect of currency exchange rate changes on cash and cash equivalents — — — 15,490 15,490 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS — (8,211 ) (223,869 ) 2,785 (229,295 ) CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD 7 16,889 264,121 481,559 762,576 CASH AND CASH EQUIVALENTS, AT END OF PERIOD $ 7 $ 8,678 $ 40,252 $ 484,344 $ 533,281 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 51,987 $ — $ 40 $ 52,027 Income taxes, net $ — $ — $ 5,176 $ 32,157 $ 37,333 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2016 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 38,715 $ (14,370 ) $ (350,009 ) $ (2,976 ) $ (328,640 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (23,730 ) (9,738 ) (33,468 ) Acquisition of GWS, including net assets acquired, intangibles and goodwill — — (21,900 ) — (21,900 ) Acquisition of businesses (other than GWS), including net assets acquired, intangibles and goodwill — — (1,143 ) (2,155 ) (3,298 ) Contributions to unconsolidated subsidiaries — — (10,832 ) (91 ) (10,923 ) Distributions from unconsolidated subsidiaries — — 54,420 1,151 55,571 Proceeds from the sale of servicing rights and other assets — — 3,739 1,864 5,603 Decrease in restricted cash — — 3,254 6,517 9,771 Purchase of available for sale securities — — (7,716 ) — (7,716 ) Proceeds from the sale of available for sale securities — — 9,969 — 9,969 Other investing activities, net — — (2,303 ) — (2,303 ) Net cash provided by (used in) investing activities — — 3,758 (2,452 ) 1,306 CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of senior term loans — (5,625 ) — — (5,625 ) Proceeds from revolving credit facility — 565,000 — — 565,000 Repayment of revolving credit facility — (285,000 ) — — (285,000 ) Proceeds from notes payable on real estate held for sale and under development — — — 12,427 12,427 Repayment of notes payable on real estate held for sale and under development — — — (4,102 ) (4,102 ) Units repurchased for payment of taxes on equity awards (4,252 ) — — − (4,252 ) Non-controlling interest contributions — — — 27 27 Non-controlling interest distributions — — — (1,138 ) (1,138 ) Payment of financing costs — (4,677 ) — (110 ) (4,787 ) (Increase) decrease in intercompany receivables, net (34,640 ) (260,391 ) 251,072 43,959 — Other financing activities, net 177 — — (413 ) (236 ) Net cash (used in) provided by financing activities (38,715 ) 9,307 251,072 50,650 272,314 Effect of currency exchange rate changes on cash and cash equivalents — — — 3,846 3,846 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS — (5,063 ) (95,179 ) 49,068 (51,174 ) CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD 5 8,479 147,410 384,509 540,403 CASH AND CASH EQUIVALENTS, AT END OF PERIOD $ 5 $ 3,416 $ 52,231 $ 433,577 $ 489,229 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 53,924 $ — $ 281 $ 54,205 Income taxes, net $ — $ — $ 63,648 $ 19,330 $ 82,978 |
Variable Interest Entities (V18
Variable Interest Entities (VIEs) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Maximum Exposure to Loss | As of March 31, 2017 and December 31, 2016, our maximum exposure to loss related to the VIEs which are not consolidated was as follows (dollars in thousands): March 31, December 31, 2017 2016 Investments in unconsolidated subsidiaries $ 31,651 $ 31,041 Other current assets 3,403 3,314 Co-investment commitments 164 168 Maximum exposure to loss $ 35,218 $ 34,523 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (dollars in thousands): As of March 31, 2017 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 8,973 $ — $ — $ 8,973 Debt securities issued by U.S. federal agencies — 4,830 — 4,830 Corporate debt securities — 17,407 — 17,407 Asset-backed securities — 1,842 — 1,842 Collateralized mortgage obligations — 983 — 983 Total debt securities 8,973 25,062 — 34,035 Equity securities 24,540 — — 24,540 Total available for sale securities 33,513 25,062 — 58,575 Trading securities 64,423 — — 64,423 Warehouse receivables — 685,133 — 685,133 Foreign currency exchange forward contracts — 1,352 — 1,352 Total assets at fair value $ 97,936 $ 711,547 $ — $ 809,483 Liabilities Interest rate swaps $ — $ 10,341 $ — $ 10,341 Securities sold, not yet purchased 4,111 — — 4,111 Total liabilities at fair value $ 4,111 $ 10,341 $ — $ 14,452 As of December 31, 2016 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 8,485 $ — $ — $ 8,485 Debt securities issued by U.S. federal agencies — 5,046 — 5,046 Corporate debt securities — 17,094 — 17,094 Asset-backed securities — 2,695 — 2,695 Collateralized mortgage obligations — 1,010 — 1,010 Total debt securities 8,485 25,845 — 34,330 Equity securities 22,744 — — 22,744 Total available for sale securities 31,229 25,845 — 57,074 Trading securities 52,629 — — 52,629 Warehouse receivables — 1,276,047 — 1,276,047 Foreign currency exchange forward contracts — 1,471 — 1,471 Total assets at fair value $ 83,858 $ 1,303,363 $ — $ 1,387,221 Liabilities Interest rate swaps $ — $ 13,162 $ — $ 13,162 Securities sold, not yet purchased 3,591 — — 3,591 Total liabilities at fair value $ 3,591 $ 13,162 $ — $ 16,753 |
Investments in Unconsolidated20
Investments in Unconsolidated Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of Condensed Financial Information of Equity Method Investments | Combined condensed financial information for the entities actually accounted for using the equity method is as follows (dollars in thousands): Three Months Ended March 31, 2017 2016 Global Investment Management Revenue $ 267,151 $ 232,603 Operating income $ 15,478 $ 623 Net income (loss) $ 4,090 $ (21,875 ) Development Services Revenue $ 21,526 $ 12,658 Operating income $ 20,561 $ 120,910 Net income $ 16,097 $ 118,461 Other Revenue $ 25,858 $ 28,251 Operating income $ 2,179 $ 6,182 Net income $ 2,148 $ 6,194 Total Revenue $ 314,535 $ 273,512 Operating income $ 38,218 $ 127,715 Net income $ 22,335 $ 102,780 |
Long-Term Debt and Short-Term21
Long-Term Debt and Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (dollars in thousands): March 31, December 31, 2017 2016 Senior term loans, with interest ranging from 1.77% to 2.38%, due quarterly through 2022 $ 751,875 $ 751,875 5.00% senior notes due in 2023 800,000 800,000 4.875% senior notes due in 2026, net of unamortized discount 596,001 595,912 5.25% senior notes due in 2025, net of unamortized premium 426,454 426,500 Other 14 14 Total long-term debt 2,574,344 2,574,301 Less: current maturities of long-term debt (12 ) (11 ) Less: unamortized debt issuance costs (25,074 ) (26,164 ) Total long-term debt, net of current maturities $ 2,549,258 $ 2,548,126 |
Income Per Share Information (T
Income Per Share Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Income Per Share | The calculations of basic and diluted income per share attributable to CBRE Group, Inc. shareholders are as follows (dollars in thousands, except share data): Three Months Ended March 31, 2017 2016 Basic Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 129,597 $ 82,167 Weighted average shares outstanding for basic income per share 336,907,836 333,992,935 Basic income per share attributable to CBRE Group, Inc. shareholders $ 0.38 $ 0.25 Diluted Income Per Share Net income attributable to CBRE Group, Inc. shareholders $ 129,597 $ 82,167 Weighted average shares outstanding for basic income per share 336,907,836 333,992,935 Dilutive effect of contingently issuable shares 2,774,785 3,469,041 Dilutive effect of stock options 7,958 44,256 Weighted average shares outstanding for diluted income per share 339,690,579 337,506,232 Diluted income per share attributable to CBRE Group, Inc. shareholders $ 0.38 $ 0.24 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Summarized Financial Information by Segment | Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended March 31, 2017 2016 (1) Revenue Americas $ 1,692,646 $ 1,587,875 EMEA 844,188 840,347 Asia Pacific 341,145 311,359 Global Investment Management 89,566 90,380 Development Services 13,659 16,773 Total revenue $ 2,981,204 $ 2,846,734 Adjusted EBITDA Americas $ 220,400 $ 187,214 EMEA 33,864 27,811 Asia Pacific 20,281 12,868 Global Investment Management 25,859 22,915 Development Services 2,804 31,875 Total Adjusted EBITDA $ 303,208 $ 282,683 (1) In 2017, we changed the presentation of the operating results of one of our emerging businesses among our regional services reporting segments. Prior year amounts have been reclassified to conform with the current-year presentation. This change had no impact on our consolidated results. |
Adjusted EBITDA Calculation by Segment | Adjusted EBITDA is calculated as follows (dollars in thousands): Three Months Ended March 31, 2017 2016 (1) Net income attributable to CBRE Group, Inc. $ 129,597 $ 82,167 Add: Depreciation and amortization 94,037 86,994 Interest expense 34,010 34,790 Provision for income taxes 51,273 50,125 Less: Interest income 2,411 1,459 EBITDA 306,506 252,617 Adjustments: Integration and other costs related to acquisitions 11,943 17,173 Cost-elimination expenses (2) - 12,403 Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue (15,241 ) 490 Adjusted EBITDA $ 303,208 $ 282,683 (1) In 2017, we changed the presentation of the operating results of one of our emerging businesses among our regional services reporting segments. Prior year amounts have been reclassified to conform with the current-year presentation. This change had no impact on our consolidated results. ( 2 ) Represents cost-elimination expenses relating to a program initiated in the fourth quarter of 2015 and completed in the third quarter of 2016 (our cost-elimination project) to reduce the company’s global cost structure after several years of significant revenue and related cost growth. Cost-elimination expenses incurred during the three months ended March 31, 2016 consisted of $11.8 million of severance costs related to headcount reductions in connection with the program and $0.6 million of third-party contract termination costs. |
Guarantor and Nonguarantor Fi24
Guarantor and Nonguarantor Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2017 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 8,678 $ 40,252 $ 484,344 $ − $ 533,281 Restricted cash — — 4,968 54,078 — 59,046 Receivables, net — — 996,102 1,503,013 — 2,499,115 Warehouse receivables (1) — — 350,501 334,632 — 685,133 Income taxes receivable — 1,375 11,630 43,808 (1,375 ) 55,438 Prepaid expenses — − 84,874 127,462 — 212,336 Other current assets — 1,302 73,776 126,033 — 201,111 Total Current Assets 7 11,355 1,562,103 2,673,370 (1,375 ) 4,245,460 Property and equipment, net — — 384,136 167,497 — 551,633 Goodwill — — 1,682,177 1,337,408 — 3,019,585 Other intangible assets, net — — 778,857 624,405 — 1,403,262 Investments in unconsolidated subsidiaries — — 196,497 45,989 — 242,486 Investments in consolidated subsidiaries 4,427,377 4,429,140 2,421,387 — (11,277,904 ) — Intercompany loan receivable — 2,653,458 700,000 — (3,353,458 ) — Deferred tax assets, net — — 52,861 94,653 (52,861 ) 94,653 Other assets, net — 20,921 243,284 105,828 − 370,033 Total Assets $ 4,427,384 $ 7,114,874 $ 8,021,302 $ 5,049,150 $ (14,685,598 ) $ 9,927,112 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 7,275 $ 381,816 $ 931,493 $ — $ 1,320,584 Compensation and employee benefits payable — 626 345,922 373,419 — 719,967 Accrued bonus and profit sharing — — 210,041 257,676 — 467,717 Income taxes payable 109 — 79,086 32,074 (1,375 ) 109,894 Short-term borrowings: — Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) (1) — — 344,831 326,622 — 671,453 Revolving credit facility — 120,000 — — — 120,000 Other — — 16 — — 16 Total short-term borrowings — 120,000 344,847 326,622 — 791,469 Current maturities of long-term debt — - — 12 — 12 Other current liabilities — 1,833 41,942 19,762 — 63,537 Total Current Liabilities 109 129,734 1,403,654 1,941,058 (1,375 ) 3,473,180 Long-Term Debt, net: Long-term debt, net — 2,549,256 — 2 — 2,549,258 Intercompany loan payable 1,215,330 — 1,886,440 251,688 (3,353,458 ) − Total Long-Term Debt, net 1,215,330 2,549,256 1,886,440 251,690 (3,353,458 ) 2,549,258 Deferred tax liabilities, net — — — 131,003 (52,861 ) 78,142 Non-current tax liabilities — — 38,673 2,097 — 40,770 Other liabilities — 8,507 263,395 255,621 — 527,523 Total Liabilities 1,215,439 2,687,497 3,592,162 2,581,469 (3,407,694 ) 6,668,873 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 3,211,945 4,427,377 4,429,140 2,421,387 (11,277,904 ) 3,211,945 Non-controlling interests — — — 46,294 — 46,294 Total Equity 3,211,945 4,427,377 4,429,140 2,467,681 (11,277,904 ) 3,258,239 Total Liabilities and Equity $ 4,427,384 $ 7,114,874 $ 8,021,302 $ 5,049,150 $ (14,685,598 ) $ 9,927,112 (1) Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 4.875% senior notes, 5.25% senior notes and our 2015 Credit Agreement, a substantial majority of warehouse receivables funded under JP Morgan Chase Bank, N.A. (JP Morgan), Bank of America (BofA), TD Bank, N.A. (TD Bank), Fannie Mae ASAP and Capital One, N.A. (Capital One) lines of credit are pledged to JP Morgan, BofA, TD Bank, Fannie Mae and Capital One. CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2016 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total ASSETS Current Assets: Cash and cash equivalents $ 7 $ 16,889 $ 264,121 $ 481,559 $ − $ 762,576 Restricted cash — — 6,967 61,869 — 68,836 Receivables, net — — 943,028 1,662,574 — 2,605,602 Warehouse receivables (1) — — 687,454 588,593 — 1,276,047 Income taxes receivable 1,915 17,364 8,170 37,456 (19,279 ) 45,626 Prepaid expenses — — 78,296 105,811 — 184,107 Other current assets — 1,421 64,576 113,659 — 179,656 Total Current Assets 1,922 35,674 2,052,612 3,051,521 (19,279 ) 5,122,450 Property and equipment, net — — 395,749 165,007 — 560,756 Goodwill — — 1,669,683 1,311,709 — 2,981,392 Other intangible assets, net — — 793,525 617,514 — 1,411,039 Investments in unconsolidated subsidiaries — — 189,455 42,783 — 232,238 Investments in consolidated subsidiaries 4,226,629 4,076,265 2,314,549 — (10,617,443 ) — Intercompany loan receivable — 2,684,421 700,000 — (3,384,421 ) — Deferred tax assets, net — — 72,325 90,334 (57,335 ) 105,324 Other assets, net — 22,229 240,707 103,452 — 366,388 Total Assets $ 4,228,551 $ 6,818,589 $ 8,428,605 $ 5,382,320 $ (14,078,478 ) $ 10,779,587 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ — $ 30,049 $ 409,470 $ 1,006,919 $ — $ 1,446,438 Compensation and employee benefits payable — 626 402,719 369,577 — 772,922 Accrued bonus and profit sharing — — 506,715 383,606 — 890,321 Income taxes payable — — 40,946 36,684 (19,279 ) 58,351 Short-term borrowings: — Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) (1) — — 680,473 574,180 — 1,254,653 Other — — 16 — — 16 Total short-term borrowings — — 680,489 574,180 — 1,254,669 Current maturities of long-term debt — — — 11 — 11 Other current liabilities — — 81,590 21,127 — 102,717 Total Current Liabilities — 30,675 2,121,929 2,392,104 (19,279 ) 4,525,429 Long-Term Debt, net: Long-term debt, net — 2,548,123 — 3 — 2,548,126 Intercompany loan payable 1,214,064 — 1,916,675 253,682 (3,384,421 ) — Total Long-Term Debt, net 1,214,064 2,548,123 1,916,675 253,685 (3,384,421 ) 2,548,126 Deferred tax liabilities, net — — — 128,054 (57,335 ) 70,719 Non-current tax liabilities — — 53,422 620 — 54,042 Other liabilities — 13,162 260,314 250,550 — 524,026 Total Liabilities 1,214,064 2,591,960 4,352,340 3,025,013 (3,461,035 ) 7,722,342 Commitments and contingencies — — — — — — Equity: CBRE Group, Inc. Stockholders’ Equity 3,014,487 4,226,629 4,076,265 2,314,549 (10,617,443 ) 3,014,487 Non-controlling interests — — — 42,758 — 42,758 Total Equity 3,014,487 4,226,629 4,076,265 2,357,307 (10,617,443 ) 3,057,245 Total Liabilities and Equity $ 4,228,551 $ 6,818,589 $ 8,428,605 $ 5,382,320 $ (14,078,478 ) $ 10,779,587 (1) Although CBRE Capital Markets is included among our domestic subsidiaries that jointly and severally guarantee our 5.00% senior notes, 4.875% senior notes, 5.25% senior notes and our 2015 Credit Agreement, a substantial majority of warehouse receivables funded under BofA, Fannie Mae ASAP, JP Morgan, Capital One and TD Bank lines of credit are pledged to BofA, Fannie Mae, JP Morgan, Capital One and TD Bank. |
Condensed Consolidating Statement of Operations | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2017 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total Revenue $ — $ — $ 1,563,066 $ 1,418,138 $ − $ 2,981,204 Costs and expenses: Cost of services — — 1,070,384 1,016,695 — 2,087,079 Operating, administrative and other (284 ) 349 315,756 290,410 — 606,231 Depreciation and amortization — — 56,730 37,307 — 94,037 Total costs and expenses (284 ) 349 1,442,870 1,344,412 — 2,787,347 Gain on disposition of real estate — — 226 1,159 — 1,385 Operating income (loss) 284 (349 ) 120,422 74,885 — 195,242 Equity income from unconsolidated subsidiaries — — 14,370 648 — 15,018 Other income — — 414 3,701 — 4,115 Interest income — 29,901 1,647 764 (29,901 ) 2,411 Interest expense — 33,146 22,148 8,617 (29,901 ) 34,010 Royalty and management service (income) expense — — (5,802 ) 5,802 — — Income from consolidated subsidiaries 129,422 131,641 41,989 — (303,052 ) — Income before provision for (benefit of) income taxes 129,706 128,047 162,496 65,579 (303,052 ) 182,776 Provision for (benefit of) income taxes 109 (1,375 ) 30,855 21,684 — 51,273 Net income 129,597 129,422 131,641 43,895 (303,052 ) 131,503 Less: Net income attributable to non-controlling interests — — — 1,906 — 1,906 Net income attributable to CBRE Group, Inc. $ 129,597 $ 129,422 $ 131,641 $ 41,989 $ (303,052 ) $ 129,597 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2016 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total Revenue $ — $ — $ 1,497,499 $ 1,349,235 $ — $ 2,846,734 Costs and expenses: Cost of services — — 1,024,563 989,050 — 2,013,613 Operating, administrative and other 1,426 7,524 342,870 291,546 — 643,366 Depreciation and amortization — — 54,731 32,263 — 86,994 Total costs and expenses 1,426 7,524 1,422,164 1,312,859 — 2,743,973 Gain on disposition of real estate — — 3,659 1,160 — 4,819 Operating (loss) income (1,426 ) (7,524 ) 78,994 37,536 — 107,580 Equity income from unconsolidated subsidiaries — — 56,265 1,036 — 57,301 Other (loss) income — — (432 ) 3,647 — 3,215 Interest income — 32,473 917 542 (32,473 ) 1,459 Interest expense — 33,627 24,583 9,053 (32,473 ) 34,790 Royalty and management service (income) expense — — (7,428 ) 7,428 − — Income from consolidated subsidiaries 83,047 88,400 3,532 — (174,979 ) — Income before (benefit of) provision for income taxes 81,621 79,722 122,121 26,280 (174,979 ) 134,765 (Benefit of) provision for income taxes (546 ) (3,325 ) 33,721 20,275 — 50,125 Net income 82,167 83,047 88,400 6,005 (174,979 ) 84,640 Less: Net income attributable to non-controlling interests — — — 2,473 — 2,473 Net income attributable to CBRE Group, Inc. $ 82,167 $ 83,047 $ 88,400 $ 3,532 $ (174,979 ) $ 82,167 |
Condensed Consolidating Statement of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2017 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total Net income $ 129,597 $ 129,422 $ 131,641 $ 43,895 $ (303,052 ) $ 131,503 Other comprehensive (loss) income: Foreign currency translation gain — — — 51,089 — 51,089 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 1,508 — — — 1,508 Unrealized gains on interest rate swaps, net — 294 — — — 294 Unrealized holding gains on available for sale securities, net — — 829 94 — 923 Other, net (5 ) — (1 ) — — (6 ) Total other comprehensive (loss) income (5 ) 1,802 828 51,183 — 53,808 Comprehensive income 129,592 131,224 132,469 95,078 (303,052 ) 185,311 Less: Comprehensive income attributable to non-controlling interests — — — 1,927 — 1,927 Comprehensive income attributable to CBRE Group, Inc. $ 129,592 $ 131,224 $ 132,469 $ 93,151 $ (303,052 ) $ 183,384 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2016 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Eliminations Total Net income $ 82,167 $ 83,047 $ 88,400 $ 6,005 $ (174,979 ) $ 84,640 Other comprehensive (loss) income: Foreign currency translation gain — — — 16,594 — 16,594 Amounts reclassified from accumulated other comprehensive loss to interest expense, net — 1,743 — — — 1,743 Unrealized losses on interest rate swaps, net — (2,909 ) — — — (2,909 ) Unrealized holding (losses) gains on available for sale securities, net — — (1,089 ) 160 — (929 ) Other, net — — (57 ) − — (57 ) Total other comprehensive (loss) income — (1,166 ) (1,146 ) 16,754 — 14,442 Comprehensive income 82,167 81,881 87,254 22,759 (174,979 ) 99,082 Less: Comprehensive income attributable to non-controlling interests — — — 2,595 — 2,595 Comprehensive income attributable to CBRE Group, Inc. $ 82,167 $ 81,881 $ 87,254 $ 20,164 $ (174,979 ) $ 96,487 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 17,610 $ (6,445 ) $ (326,667 ) $ (26,528 ) $ (342,030 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (17,095 ) (6,640 ) (23,735 ) Acquisition of businesses, including net assets acquired, intangibles and goodwill — — (20,578 ) (626 ) (21,204 ) Contributions to unconsolidated subsidiaries — — (11,086 ) (3,481 ) (14,567 ) Distributions from unconsolidated subsidiaries — — 15,796 199 15,995 Proceeds from the sale of servicing rights and other assets — — 6,009 5,356 11,365 Decrease in restricted cash — — 1,999 8,464 10,463 Purchase of available for sale securities — — (7,289 ) — (7,289 ) Proceeds from the sale of available for sale securities — — 7,220 — 7,220 Other investing activities, net — — 1,275 (48 ) 1,227 Net cash (used in) provided by investing activities — — (23,749 ) 3,224 (20,525 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving credit facility — 266,000 — — 266,000 Repayment of revolving credit facility — (146,000 ) — — (146,000 ) Repayment of notes payable on real estate held for investment — - — (435 ) (435 ) Proceeds from notes payable on real estate held for sale and under development — — — 1,711 1,711 Repayment of notes payable on real estate held for sale and under development — — — (2,744 ) (2,744 ) Units repurchased for payment of taxes on equity awards (1,900 ) — — — (1,900 ) Non-controlling interest contributions — — — 1,574 1,574 Non-controlling interest distributions — — — (744 ) (744 ) (Increase) decrease in intercompany receivables, net (16,020 ) (121,766 ) 126,547 11,239 — Other financing activities, net 310 — — (2 ) 308 Net cash (used in) provided by financing activities (17,610 ) (1,766 ) 126,547 10,599 117,770 Effect of currency exchange rate changes on cash and cash equivalents — — — 15,490 15,490 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS — (8,211 ) (223,869 ) 2,785 (229,295 ) CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD 7 16,889 264,121 481,559 762,576 CASH AND CASH EQUIVALENTS, AT END OF PERIOD $ 7 $ 8,678 $ 40,252 $ 484,344 $ 533,281 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 51,987 $ — $ 40 $ 52,027 Income taxes, net $ — $ — $ 5,176 $ 32,157 $ 37,333 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2016 (Dollars in thousands) CBRE Guarantor Nonguarantor Consolidated Parent Services Subsidiaries Subsidiaries Total CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 38,715 $ (14,370 ) $ (350,009 ) $ (2,976 ) $ (328,640 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — (23,730 ) (9,738 ) (33,468 ) Acquisition of GWS, including net assets acquired, intangibles and goodwill — — (21,900 ) — (21,900 ) Acquisition of businesses (other than GWS), including net assets acquired, intangibles and goodwill — — (1,143 ) (2,155 ) (3,298 ) Contributions to unconsolidated subsidiaries — — (10,832 ) (91 ) (10,923 ) Distributions from unconsolidated subsidiaries — — 54,420 1,151 55,571 Proceeds from the sale of servicing rights and other assets — — 3,739 1,864 5,603 Decrease in restricted cash — — 3,254 6,517 9,771 Purchase of available for sale securities — — (7,716 ) — (7,716 ) Proceeds from the sale of available for sale securities — — 9,969 — 9,969 Other investing activities, net — — (2,303 ) — (2,303 ) Net cash provided by (used in) investing activities — — 3,758 (2,452 ) 1,306 CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of senior term loans — (5,625 ) — — (5,625 ) Proceeds from revolving credit facility — 565,000 — — 565,000 Repayment of revolving credit facility — (285,000 ) — — (285,000 ) Proceeds from notes payable on real estate held for sale and under development — — — 12,427 12,427 Repayment of notes payable on real estate held for sale and under development — — — (4,102 ) (4,102 ) Units repurchased for payment of taxes on equity awards (4,252 ) — — − (4,252 ) Non-controlling interest contributions — — — 27 27 Non-controlling interest distributions — — — (1,138 ) (1,138 ) Payment of financing costs — (4,677 ) — (110 ) (4,787 ) (Increase) decrease in intercompany receivables, net (34,640 ) (260,391 ) 251,072 43,959 — Other financing activities, net 177 — — (413 ) (236 ) Net cash (used in) provided by financing activities (38,715 ) 9,307 251,072 50,650 272,314 Effect of currency exchange rate changes on cash and cash equivalents — — — 3,846 3,846 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS — (5,063 ) (95,179 ) 49,068 (51,174 ) CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD 5 8,479 147,410 384,509 540,403 CASH AND CASH EQUIVALENTS, AT END OF PERIOD $ 5 $ 3,416 $ 52,231 $ 433,577 $ 489,229 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ — $ 53,924 $ — $ 281 $ 54,205 Income taxes, net $ — $ — $ 63,648 $ 19,330 $ 82,978 |
Variable Interest Entities (V25
Variable Interest Entities (VIEs) - Schedule of Maximum Exposure to Loss (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 242,486 | $ 232,238 |
Other current assets | 201,111 | 179,656 |
Co-investment commitments | 24,200 | |
Non-Consolidated Variable Interest Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | 31,651 | 31,041 |
Other current assets | 3,403 | 3,314 |
Co-investment commitments | 164 | 168 |
Maximum exposure to loss | $ 35,218 | $ 34,523 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value measurements assets, significant transfers from level 1 to level 2 | $ 0 | $ 0 | |
Fair value measurements assets, significant transfers from level 2 to level 1 | 0 | 0 | |
Fair value measurements liabilities, significant transfers from level 1 to level 2 | 0 | 0 | |
Fair value measurements liabilities, significant transfers from level 2 to level 1 | 0 | 0 | |
Assets, fair value disclosure, nonrecurring | 0 | $ 0 | |
Liabilities, fair value disclosure, nonrecurring | 0 | ||
5.00% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated fair value of senior loans | $ 835,500,000 | $ 827,600,000 | |
Interest rate of long-term debt | 5.00% | 5.00% | |
Senior notes | $ 790,700,000 | $ 790,400,000 | |
4.875% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated fair value of senior loans | $ 626,800,000 | $ 607,000,000 | |
Interest rate of long-term debt | 4.875% | 4.875% | |
Senior notes | $ 591,400,000 | $ 591,200,000 | |
5.25% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated fair value of senior loans | $ 452,500,000 | $ 439,300,000 | |
Interest rate of long-term debt | 5.25% | 5.25% | |
Senior notes | $ 422,200,000 | $ 422,200,000 | |
Senior term loans [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated fair value of senior loans | 751,400,000 | 751,400,000 | |
Senior term loans | $ 744,900,000 | $ 744,300,000 | |
Senior Notes [Member] | 5.00% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate of long-term debt | 5.00% | 5.00% | |
Senior Notes [Member] | 4.875% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate of long-term debt | 4.875% | 4.875% | |
Senior Notes [Member] | 5.25% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate of long-term debt | 5.25% | 5.25% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warehouse receivables | $ 685,133 | $ 1,276,047 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 58,575 | 57,074 |
Trading securities | 64,423 | 52,629 |
Warehouse receivables | 685,133 | 1,276,047 |
Foreign currency exchange forward contracts | 1,352 | 1,471 |
Total assets at fair value | 809,483 | 1,387,221 |
Interest rate swaps | 10,341 | 13,162 |
Securities sold, not yet purchased | 4,111 | 3,591 |
Total liabilities at fair value | 14,452 | 16,753 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 33,513 | 31,229 |
Trading securities | 64,423 | 52,629 |
Total assets at fair value | 97,936 | 83,858 |
Securities sold, not yet purchased | 4,111 | 3,591 |
Total liabilities at fair value | 4,111 | 3,591 |
Recurring [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 25,062 | 25,845 |
Warehouse receivables | 685,133 | 1,276,047 |
Foreign currency exchange forward contracts | 1,352 | 1,471 |
Total assets at fair value | 711,547 | 1,303,363 |
Interest rate swaps | 10,341 | 13,162 |
Total liabilities at fair value | 10,341 | 13,162 |
Recurring [Member] | U.S. treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 8,973 | 8,485 |
Recurring [Member] | U.S. treasury securities [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 8,973 | 8,485 |
Recurring [Member] | Debt securities issued by U.S. federal agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 4,830 | 5,046 |
Recurring [Member] | Debt securities issued by U.S. federal agencies [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 4,830 | 5,046 |
Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 17,407 | 17,094 |
Recurring [Member] | Corporate debt securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 17,407 | 17,094 |
Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,842 | 2,695 |
Recurring [Member] | Asset-backed securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,842 | 2,695 |
Recurring [Member] | Collateralized mortgage obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 983 | 1,010 |
Recurring [Member] | Collateralized mortgage obligations [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 983 | 1,010 |
Recurring [Member] | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 34,035 | 34,330 |
Recurring [Member] | Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 8,973 | 8,485 |
Recurring [Member] | Debt Securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 25,062 | 25,845 |
Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 24,540 | 22,744 |
Recurring [Member] | Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 24,540 | $ 22,744 |
Investments In Unconsolidated28
Investments In Unconsolidated Subsidiaries - Additional information (Detail) - Maximum [Member] | Mar. 31, 2017 |
Global Investment Management [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 5.00% |
Development Services [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 10.00% |
Other [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 50.00% |
Investments in Unconsolidated29
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Financial Information of Equity Method Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule Of Equity Method Investments [Line Items] | ||
Revenue | $ 314,535 | $ 273,512 |
Operating income | 38,218 | 127,715 |
Net income (loss) | 22,335 | 102,780 |
Global Investment Management [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Revenue | 267,151 | 232,603 |
Operating income | 15,478 | 623 |
Net income (loss) | 4,090 | (21,875) |
Development Services [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Revenue | 21,526 | 12,658 |
Operating income | 20,561 | 120,910 |
Net income (loss) | 16,097 | 118,461 |
Other [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Revenue | 25,858 | 28,251 |
Operating income | 2,179 | 6,182 |
Net income (loss) | $ 2,148 | $ 6,194 |
Long-Term Debt and Short-Term30
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 2,574,344 | $ 2,574,301 |
Less: current maturities of long-term debt | (12) | (11) |
Less: unamortized debt issuance costs | (25,074) | (26,164) |
Total long-term debt, net of current maturities | 2,549,258 | 2,548,126 |
Senior secured term loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 751,875 | 751,875 |
Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 14 | 14 |
5.00% Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 800,000 | 800,000 |
4.875% Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 596,001 | 595,912 |
5.25% Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 426,454 | $ 426,500 |
Long-Term Debt and Short-Term31
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Senior secured term loans [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt, end | Dec. 31, 2022 | Dec. 31, 2022 |
5.00% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 5.00% | 5.00% |
5.00% Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 5.00% | 5.00% |
Due date of long-term debt | 2,023 | 2,023 |
4.875% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 4.875% | 4.875% |
4.875% Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 4.875% | 4.875% |
Due date of long-term debt | 2,026 | 2,026 |
5.25% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 5.25% | 5.25% |
5.25% Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 5.25% | 5.25% |
Due date of long-term debt | 2,025 | 2,025 |
Minimum [Member] | Senior secured term loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 1.77% | 1.77% |
Maximum [Member] | Senior secured term loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of long-term debt | 2.38% | 2.38% |
Long-Term Debt and Short-Term32
Long-Term Debt and Short-Term Borrowings - Long-Term Debt - Additional Information (Detail) - USD ($) | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 200.00% | ||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 425.00% | ||
Coverage ratio of EBITDA to total interest expense expressed in percentage | 1308.00% | ||
Leverage ratio of total debt less available cash to EBITDA expressed in percentage | 135.00% | ||
2015 Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Amounts available to borrow under Credit Agreement | $ 2,800,000,000 | ||
Revolving credit facility maturity date | Mar. 21, 2021 | ||
5.00% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of long-term debt | 5.00% | 5.00% | |
5.00% Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of long-term debt | 5.00% | 5.00% | |
4.875% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of long-term debt | 4.875% | 4.875% | |
4.875% Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of long-term debt | 4.875% | 4.875% | |
5.25% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of long-term debt | 5.25% | 5.25% | |
5.25% Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of long-term debt | 5.25% | 5.25% | |
Revolving credit facility [Member] | 2015 Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility increase in borrowing capacity | $ 200,000,000 | ||
Tranche A term loan facility [Member] | 2015 Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Amounts available to borrow under Credit Agreement | $ 500,000,000 | ||
Revolving credit facility maturity date | Jan. 9, 2020 | ||
Tranche B-1 term loan facility [Member] | 2015 Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Amounts available to borrow under Credit Agreement | $ 270,000,000 | ||
Revolving credit facility maturity date | Sep. 3, 2020 | ||
Tranche B-2 term loan facility [Member] | 2015 Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Amounts available to borrow under Credit Agreement | $ 130,000,000 | ||
Revolving credit facility maturity date | Sep. 3, 2022 |
Long-Term Debt and Short-Term33
Long-Term Debt and Short-Term Borrowings - Revolving Credit Facility - Additional Information (Detail) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Revolving credit facility principal amount outstanding | $ 120,000,000 | |
Letters of credit outstanding amount | 59,000,000 | |
Revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility principal amount outstanding | 120,000,000 | $ 0 |
Letters of credit outstanding amount | $ 2,000,000 | $ 2,000,000 |
2015 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility, weighted average annual interest rates | 4.00% |
Long-Term Debt and Short-Term34
Long-Term Debt and Short-Term Borrowings - Warehouse Lines of Credit - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Warehouse lines of credit | $ 671,453,000 | $ 1,254,653,000 |
Loans Held-for-sale, Mortgage | 685,100,000 | $ 1,300,000,000 |
Warehouse Agreement Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit principal outstanding | $ 1,300,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 59,000,000 | |
Accrued loan loss | 29,600,000 | $ 28,200,000 |
Assets available for recourse | 552,900,000 | |
Warehouse receivables | $ 334,600,000 | |
Letters of credit expiration date | 2018-04 | |
Guarantees total | $ 56,200,000 | |
Commitments to investment in future real estate investment | 24,200,000 | |
Commitments to investment in unconsolidated real estate subsidiary | $ 23,400,000 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Co-investments typically range | 2.00% | |
Funded loans subject to loss sharing arrangements [Member] | ||
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | $ 17,400,000,000 | |
Letters of credit outstanding | 48,000,000 | $ 45,000,000 |
SBL Program [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | 5,000,000 | |
Funded loans not subject to loss sharing arrangements [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 53,000,000 |
Income Per Share Information -
Income Per Share Information - Computation of Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic Income Per Share | ||
Net income attributable to CBRE Group, Inc. shareholders | $ 129,597 | $ 82,167 |
Weighted average shares outstanding for basic income per share | 336,907,836 | 333,992,935 |
Basic income per share attributable to CBRE Group, Inc. shareholders | $ 0.38 | $ 0.25 |
Diluted Income Per Share | ||
Net income attributable to CBRE Group, Inc. shareholders | $ 129,597 | $ 82,167 |
Weighted average shares outstanding for basic income per share | 336,907,836 | 333,992,935 |
Dilutive effect of contingently issuable shares | 2,774,785 | 3,469,041 |
Dilutive effect of stock options | 7,958 | 44,256 |
Weighted average shares outstanding for diluted income per share | 339,690,579 | 337,506,232 |
Diluted income per share attributable to CBRE Group, Inc. shareholders | $ 0.38 | $ 0.24 |
Income Per Share Information 37
Income Per Share Information - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Contingently Issuable Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded in computation of diluted income per share | 1,170,967 | 1,562,323 |
Segments - Summarized Financial
Segments - Summarized Financial Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 2,981,204 | $ 2,846,734 |
Adjusted EBITDA | 303,208 | 282,683 |
Global Investment Management [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 89,566 | 90,380 |
Adjusted EBITDA | 25,859 | 22,915 |
Development Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,659 | 16,773 |
Adjusted EBITDA | 2,804 | 31,875 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,692,646 | 1,587,875 |
Adjusted EBITDA | 220,400 | 187,214 |
EMEA [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 844,188 | 840,347 |
Adjusted EBITDA | 33,864 | 27,811 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 341,145 | 311,359 |
Adjusted EBITDA | $ 20,281 | $ 12,868 |
Segments - Adjusted EBITDA Calc
Segments - Adjusted EBITDA Calculation by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting [Abstract] | ||
Net income attributable to CBRE Group, Inc. | $ 129,597 | $ 82,167 |
Depreciation and amortization | 94,037 | 86,994 |
Interest expense | 34,010 | 34,790 |
Provision for income taxes | 51,273 | 50,125 |
Interest income | 2,411 | 1,459 |
EBITDA | 306,506 | 252,617 |
Integration and other costs related to acquisitions | 11,943 | 17,173 |
Cost-elimination expenses | 12,403 | |
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue | (15,241) | 490 |
Adjusted EBITDA | $ 303,208 | $ 282,683 |
Segments - Adjusted EBITDA Ca40
Segments - Adjusted EBITDA Calculation by Segment (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Segment Reporting [Abstract] | |
Severance costs | $ 11.8 |
Contract termination cost | $ 0.6 |
Guarantor and Nonguarantor Fi41
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 533,281 | $ 762,576 | $ 489,229 | $ 540,403 |
Restricted cash | 59,046 | 68,836 | ||
Receivables, net | 2,499,115 | 2,605,602 | ||
Warehouse receivables | 685,133 | 1,276,047 | ||
Income taxes receivable | 55,438 | 45,626 | ||
Prepaid expenses | 212,336 | 184,107 | ||
Other current assets | 201,111 | 179,656 | ||
Total Current Assets | 4,245,460 | 5,122,450 | ||
Property and equipment, net | 551,633 | 560,756 | ||
Goodwill | 3,019,585 | 2,981,392 | ||
Other intangible assets, net | 1,403,262 | 1,411,039 | ||
Investments in unconsolidated subsidiaries | 242,486 | 232,238 | ||
Deferred tax assets, net | 94,653 | 105,324 | ||
Other assets, net | 370,033 | 366,388 | ||
Total Assets | 9,927,112 | 10,779,587 | ||
Accounts payable and accrued expenses | 1,320,584 | 1,446,438 | ||
Compensation and employee benefits payable | 719,967 | 772,922 | ||
Accrued bonus and profit sharing | 467,717 | 890,321 | ||
Income taxes payable | 109,894 | 58,351 | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) | 671,453 | 1,254,653 | ||
Revolving credit facility principal amount outstanding | 120,000 | |||
Other | 16 | 16 | ||
Total short-term borrowings | 791,469 | 1,254,669 | ||
Current maturities of long-term debt | 12 | 11 | ||
Other current liabilities | 63,537 | 102,717 | ||
Total Current Liabilities | 3,473,180 | 4,525,429 | ||
Long-term debt, net | 2,549,258 | 2,548,126 | ||
Total Long-Term Debt, net | 2,549,258 | 2,548,126 | ||
Deferred tax liabilities, net | 78,142 | 70,719 | ||
Non-current tax liabilities | 40,770 | 54,042 | ||
Other liabilities | 527,523 | 524,026 | ||
Total Liabilities | 6,668,873 | 7,722,342 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 3,211,945 | 3,014,487 | ||
Non-controlling interests | 46,294 | 42,758 | ||
Total Equity | 3,258,239 | 3,057,245 | ||
Total Liabilities and Equity | 9,927,112 | 10,779,587 | ||
Eliminations [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Income taxes receivable | (1,375) | (19,279) | ||
Total Current Assets | (1,375) | (19,279) | ||
Investments in consolidated subsidiaries | (11,277,904) | (10,617,443) | ||
Intercompany loan receivable | (3,353,458) | (3,384,421) | ||
Deferred tax assets, net | (52,861) | (57,335) | ||
Total Assets | (14,685,598) | (14,078,478) | ||
Income taxes payable | (1,375) | (19,279) | ||
Total Current Liabilities | (1,375) | (19,279) | ||
Intercompany loan payable | (3,353,458) | (3,384,421) | ||
Total Long-Term Debt, net | (3,353,458) | (3,384,421) | ||
Deferred tax liabilities, net | (52,861) | (57,335) | ||
Total Liabilities | (3,407,694) | (3,461,035) | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | (11,277,904) | (10,617,443) | ||
Total Equity | (11,277,904) | (10,617,443) | ||
Total Liabilities and Equity | (14,685,598) | (14,078,478) | ||
Parent [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 7 | 7 | 5 | 5 |
Income taxes receivable | 1,915 | |||
Total Current Assets | 7 | 1,922 | ||
Investments in consolidated subsidiaries | 4,427,377 | 4,226,629 | ||
Total Assets | 4,427,384 | 4,228,551 | ||
Income taxes payable | 109 | |||
Total Current Liabilities | 109 | |||
Intercompany loan payable | 1,215,330 | 1,214,064 | ||
Total Long-Term Debt, net | 1,215,330 | 1,214,064 | ||
Total Liabilities | 1,215,439 | 1,214,064 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 3,211,945 | 3,014,487 | ||
Total Equity | 3,211,945 | 3,014,487 | ||
Total Liabilities and Equity | 4,427,384 | 4,228,551 | ||
CBRE Services [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 8,678 | 16,889 | 3,416 | 8,479 |
Income taxes receivable | 1,375 | 17,364 | ||
Other current assets | 1,302 | 1,421 | ||
Total Current Assets | 11,355 | 35,674 | ||
Investments in consolidated subsidiaries | 4,429,140 | 4,076,265 | ||
Intercompany loan receivable | 2,653,458 | 2,684,421 | ||
Other assets, net | 20,921 | 22,229 | ||
Total Assets | 7,114,874 | 6,818,589 | ||
Accounts payable and accrued expenses | 7,275 | 30,049 | ||
Compensation and employee benefits payable | 626 | 626 | ||
Revolving credit facility principal amount outstanding | 120,000 | |||
Total short-term borrowings | 120,000 | |||
Other current liabilities | 1,833 | |||
Total Current Liabilities | 129,734 | 30,675 | ||
Long-term debt, net | 2,549,256 | 2,548,123 | ||
Total Long-Term Debt, net | 2,549,256 | 2,548,123 | ||
Other liabilities | 8,507 | 13,162 | ||
Total Liabilities | 2,687,497 | 2,591,960 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 4,427,377 | 4,226,629 | ||
Total Equity | 4,427,377 | 4,226,629 | ||
Total Liabilities and Equity | 7,114,874 | 6,818,589 | ||
Guarantor Subsidiaries [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 40,252 | 264,121 | 52,231 | 147,410 |
Restricted cash | 4,968 | 6,967 | ||
Receivables, net | 996,102 | 943,028 | ||
Warehouse receivables | 350,501 | 687,454 | ||
Income taxes receivable | 11,630 | 8,170 | ||
Prepaid expenses | 84,874 | 78,296 | ||
Other current assets | 73,776 | 64,576 | ||
Total Current Assets | 1,562,103 | 2,052,612 | ||
Property and equipment, net | 384,136 | 395,749 | ||
Goodwill | 1,682,177 | 1,669,683 | ||
Other intangible assets, net | 778,857 | 793,525 | ||
Investments in unconsolidated subsidiaries | 196,497 | 189,455 | ||
Investments in consolidated subsidiaries | 2,421,387 | 2,314,549 | ||
Intercompany loan receivable | 700,000 | 700,000 | ||
Deferred tax assets, net | 52,861 | 72,325 | ||
Other assets, net | 243,284 | 240,707 | ||
Total Assets | 8,021,302 | 8,428,605 | ||
Accounts payable and accrued expenses | 381,816 | 409,470 | ||
Compensation and employee benefits payable | 345,922 | 402,719 | ||
Accrued bonus and profit sharing | 210,041 | 506,715 | ||
Income taxes payable | 79,086 | 40,946 | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) | 344,831 | 680,473 | ||
Other | 16 | 16 | ||
Total short-term borrowings | 344,847 | 680,489 | ||
Other current liabilities | 41,942 | 81,590 | ||
Total Current Liabilities | 1,403,654 | 2,121,929 | ||
Intercompany loan payable | 1,886,440 | 1,916,675 | ||
Total Long-Term Debt, net | 1,886,440 | 1,916,675 | ||
Non-current tax liabilities | 38,673 | 53,422 | ||
Other liabilities | 263,395 | 260,314 | ||
Total Liabilities | 3,592,162 | 4,352,340 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 4,429,140 | 4,076,265 | ||
Total Equity | 4,429,140 | 4,076,265 | ||
Total Liabilities and Equity | 8,021,302 | 8,428,605 | ||
Nonguarantor Subsidiaries [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 484,344 | 481,559 | $ 433,577 | $ 384,509 |
Restricted cash | 54,078 | 61,869 | ||
Receivables, net | 1,503,013 | 1,662,574 | ||
Warehouse receivables | 334,632 | 588,593 | ||
Income taxes receivable | 43,808 | 37,456 | ||
Prepaid expenses | 127,462 | 105,811 | ||
Other current assets | 126,033 | 113,659 | ||
Total Current Assets | 2,673,370 | 3,051,521 | ||
Property and equipment, net | 167,497 | 165,007 | ||
Goodwill | 1,337,408 | 1,311,709 | ||
Other intangible assets, net | 624,405 | 617,514 | ||
Investments in unconsolidated subsidiaries | 45,989 | 42,783 | ||
Deferred tax assets, net | 94,653 | 90,334 | ||
Other assets, net | 105,828 | 103,452 | ||
Total Assets | 5,049,150 | 5,382,320 | ||
Accounts payable and accrued expenses | 931,493 | 1,006,919 | ||
Compensation and employee benefits payable | 373,419 | 369,577 | ||
Accrued bonus and profit sharing | 257,676 | 383,606 | ||
Income taxes payable | 32,074 | 36,684 | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Entities have committed to purchase) | 326,622 | 574,180 | ||
Total short-term borrowings | 326,622 | 574,180 | ||
Current maturities of long-term debt | 12 | 11 | ||
Other current liabilities | 19,762 | 21,127 | ||
Total Current Liabilities | 1,941,058 | 2,392,104 | ||
Long-term debt, net | 2 | 3 | ||
Intercompany loan payable | 251,688 | 253,682 | ||
Total Long-Term Debt, net | 251,690 | 253,685 | ||
Deferred tax liabilities, net | 131,003 | 128,054 | ||
Non-current tax liabilities | 2,097 | 620 | ||
Other liabilities | 255,621 | 250,550 | ||
Total Liabilities | 2,581,469 | 3,025,013 | ||
Commitments and contingencies | ||||
CBRE Group, Inc. Stockholders’ Equity | 2,421,387 | 2,314,549 | ||
Non-controlling interests | 46,294 | 42,758 | ||
Total Equity | 2,467,681 | 2,357,307 | ||
Total Liabilities and Equity | $ 5,049,150 | $ 5,382,320 |
Guarantor and Nonguarantor Fi42
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Balance Sheet (Parenthetical) (Detail) | Mar. 31, 2017 | Dec. 31, 2016 |
5.00% Senior Notes [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Interest rate of long-term debt | 5.00% | 5.00% |
4.875% Senior Notes [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Interest rate of long-term debt | 4.875% | 4.875% |
5.25% Senior Notes [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Interest rate of long-term debt | 5.25% | 5.25% |
Guarantor and Nonguarantor Fi43
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Statement of Income Captions [Line Items] | ||
Revenue | $ 2,981,204 | $ 2,846,734 |
Cost of services | 2,087,079 | 2,013,613 |
Operating, administrative and other | 606,231 | 643,366 |
Depreciation and amortization | 94,037 | 86,994 |
Total costs and expenses | 2,787,347 | 2,743,973 |
Gain on disposition of real estate | 1,385 | 4,819 |
Operating income | 195,242 | 107,580 |
Equity income from unconsolidated subsidiaries | 15,018 | 57,301 |
Other (loss) income | 4,115 | 3,215 |
Interest income | 2,411 | 1,459 |
Interest expense | 34,010 | 34,790 |
Income before provision for income taxes | 182,776 | 134,765 |
Provision for (benefit of) income taxes | 51,273 | 50,125 |
Net income | 131,503 | 84,640 |
Less: Net income attributable to non-controlling interests | 1,906 | 2,473 |
Net income attributable to CBRE Group, Inc. | 129,597 | 82,167 |
Eliminations [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Interest income | (29,901) | (32,473) |
Interest expense | (29,901) | (32,473) |
Income from consolidated subsidiaries | (303,052) | (174,979) |
Income before provision for income taxes | (303,052) | (174,979) |
Net income | (303,052) | (174,979) |
Net income attributable to CBRE Group, Inc. | (303,052) | (174,979) |
Parent [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Operating, administrative and other | (284) | 1,426 |
Total costs and expenses | (284) | 1,426 |
Operating income | 284 | (1,426) |
Income from consolidated subsidiaries | 129,422 | 83,047 |
Income before provision for income taxes | 129,706 | 81,621 |
Provision for (benefit of) income taxes | 109 | (546) |
Net income | 129,597 | 82,167 |
Net income attributable to CBRE Group, Inc. | 129,597 | 82,167 |
CBRE Services [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Operating, administrative and other | 349 | 7,524 |
Total costs and expenses | 349 | 7,524 |
Operating income | (349) | (7,524) |
Interest income | 29,901 | 32,473 |
Interest expense | 33,146 | 33,627 |
Income from consolidated subsidiaries | 131,641 | 88,400 |
Income before provision for income taxes | 128,047 | 79,722 |
Provision for (benefit of) income taxes | (1,375) | (3,325) |
Net income | 129,422 | 83,047 |
Net income attributable to CBRE Group, Inc. | 129,422 | 83,047 |
Guarantor Subsidiaries [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenue | 1,563,066 | 1,497,499 |
Cost of services | 1,070,384 | 1,024,563 |
Operating, administrative and other | 315,756 | 342,870 |
Depreciation and amortization | 56,730 | 54,731 |
Total costs and expenses | 1,442,870 | 1,422,164 |
Gain on disposition of real estate | 226 | 3,659 |
Operating income | 120,422 | 78,994 |
Equity income from unconsolidated subsidiaries | 14,370 | 56,265 |
Other (loss) income | 414 | (432) |
Interest income | 1,647 | 917 |
Interest expense | 22,148 | 24,583 |
Royalty and management service (income) expense | (5,802) | (7,428) |
Income from consolidated subsidiaries | 41,989 | 3,532 |
Income before provision for income taxes | 162,496 | 122,121 |
Provision for (benefit of) income taxes | 30,855 | 33,721 |
Net income | 131,641 | 88,400 |
Net income attributable to CBRE Group, Inc. | 131,641 | 88,400 |
Nonguarantor Subsidiaries [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenue | 1,418,138 | 1,349,235 |
Cost of services | 1,016,695 | 989,050 |
Operating, administrative and other | 290,410 | 291,546 |
Depreciation and amortization | 37,307 | 32,263 |
Total costs and expenses | 1,344,412 | 1,312,859 |
Gain on disposition of real estate | 1,159 | 1,160 |
Operating income | 74,885 | 37,536 |
Equity income from unconsolidated subsidiaries | 648 | 1,036 |
Other (loss) income | 3,701 | 3,647 |
Interest income | 764 | 542 |
Interest expense | 8,617 | 9,053 |
Royalty and management service (income) expense | 5,802 | 7,428 |
Income before provision for income taxes | 65,579 | 26,280 |
Provision for (benefit of) income taxes | 21,684 | 20,275 |
Net income | 43,895 | 6,005 |
Less: Net income attributable to non-controlling interests | 1,906 | 2,473 |
Net income attributable to CBRE Group, Inc. | $ 41,989 | $ 3,532 |
Guarantor and Nonguarantor Fi44
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Statement of Income Captions [Line Items] | ||
Net income | $ 131,503 | $ 84,640 |
Foreign currency translation gain | 51,089 | 16,594 |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 1,508 | 1,743 |
Unrealized gains (losses) on interest rate swaps, net of tax | 294 | (2,909) |
Unrealized holding gains (losses) on available for sale securities, net of tax | 923 | (929) |
Other, net | (6) | (57) |
Total other comprehensive income | 53,808 | 14,442 |
Comprehensive income | 185,311 | 99,082 |
Less: Comprehensive income attributable to non-controlling interests | 1,927 | 2,595 |
Comprehensive income attributable to CBRE Group, Inc. | 183,384 | 96,487 |
Eliminations [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | (303,052) | (174,979) |
Comprehensive income | (303,052) | (174,979) |
Comprehensive income attributable to CBRE Group, Inc. | (303,052) | (174,979) |
Parent [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 129,597 | 82,167 |
Other, net | (5) | |
Total other comprehensive income | (5) | |
Comprehensive income | 129,592 | 82,167 |
Comprehensive income attributable to CBRE Group, Inc. | 129,592 | 82,167 |
CBRE Services [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 129,422 | 83,047 |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 1,508 | 1,743 |
Unrealized gains (losses) on interest rate swaps, net of tax | 294 | (2,909) |
Total other comprehensive income | 1,802 | (1,166) |
Comprehensive income | 131,224 | 81,881 |
Comprehensive income attributable to CBRE Group, Inc. | 131,224 | 81,881 |
Guarantor Subsidiaries [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 131,641 | 88,400 |
Unrealized holding gains (losses) on available for sale securities, net of tax | 829 | (1,089) |
Other, net | (1) | (57) |
Total other comprehensive income | 828 | (1,146) |
Comprehensive income | 132,469 | 87,254 |
Comprehensive income attributable to CBRE Group, Inc. | 132,469 | 87,254 |
Nonguarantor Subsidiaries [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 43,895 | 6,005 |
Foreign currency translation gain | 51,089 | 16,594 |
Unrealized holding gains (losses) on available for sale securities, net of tax | 94 | 160 |
Total other comprehensive income | 51,183 | 16,754 |
Comprehensive income | 95,078 | 22,759 |
Less: Comprehensive income attributable to non-controlling interests | 1,927 | 2,595 |
Comprehensive income attributable to CBRE Group, Inc. | $ 93,151 | $ 20,164 |
Guarantor and Nonguarantor Fi45
Guarantor and Nonguarantor Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | $ (342,030) | $ (328,640) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (23,735) | (33,468) |
Acquisition of GWS, including net assets acquired, intangibles and goodwill | (21,900) | |
Acquisition of businesses (other than Global Workplace Solutions (GWS)), including net assets acquired, intangibles and goodwill | (21,204) | (3,298) |
Contributions to unconsolidated subsidiaries | (14,567) | (10,923) |
Distributions from unconsolidated subsidiaries | 15,995 | 55,571 |
Proceeds from the sale of servicing rights and other assets | 11,365 | 5,603 |
Decrease in restricted cash | 10,463 | 9,771 |
Purchase of available for sale securities | (7,289) | (7,716) |
Proceeds from the sale of available for sale securities | 7,220 | 9,969 |
Other investing activities, net | 1,227 | (2,303) |
Net cash (used in) provided by investing activities | (20,525) | 1,306 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of senior term loans | (5,625) | |
Proceeds from revolving credit facility | 266,000 | 565,000 |
Repayment of revolving credit facility | (146,000) | (285,000) |
Repayment of notes payable on real estate held for investment | (435) | |
Proceeds from notes payable on real estate held for sale and under development | 1,711 | 12,427 |
Repayment of notes payable on real estate held for sale and under development | (2,744) | (4,102) |
Units repurchased for payment of taxes on equity awards | (1,900) | (4,252) |
Non-controlling interest contributions | 1,574 | 27 |
Non-controlling interest distributions | (744) | (1,138) |
Payment of financing costs | (4,787) | |
Other financing activities, net | 308 | (236) |
Net cash provided by financing activities | 117,770 | 272,314 |
Effect of currency exchange rate changes on cash and cash equivalents | 15,490 | 3,846 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (229,295) | (51,174) |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 762,576 | 540,403 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 533,281 | 489,229 |
Cash paid during the period for: | ||
Interest | 52,027 | 54,205 |
Income taxes, net | 37,333 | 82,978 |
Parent [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 17,610 | 38,715 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Units repurchased for payment of taxes on equity awards | (1,900) | (4,252) |
(Increase) decrease in intercompany receivables, net | (16,020) | (34,640) |
Other financing activities, net | 310 | 177 |
Net cash provided by financing activities | (17,610) | (38,715) |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 7 | 5 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 7 | 5 |
CBRE Services [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (6,445) | (14,370) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of senior term loans | (5,625) | |
Proceeds from revolving credit facility | 266,000 | 565,000 |
Repayment of revolving credit facility | (146,000) | (285,000) |
Payment of financing costs | (4,677) | |
(Increase) decrease in intercompany receivables, net | (121,766) | (260,391) |
Net cash provided by financing activities | (1,766) | 9,307 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (8,211) | (5,063) |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 16,889 | 8,479 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 8,678 | 3,416 |
Cash paid during the period for: | ||
Interest | 51,987 | 53,924 |
Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (326,667) | (350,009) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (17,095) | (23,730) |
Acquisition of GWS, including net assets acquired, intangibles and goodwill | (21,900) | |
Acquisition of businesses (other than Global Workplace Solutions (GWS)), including net assets acquired, intangibles and goodwill | (20,578) | (1,143) |
Contributions to unconsolidated subsidiaries | (11,086) | (10,832) |
Distributions from unconsolidated subsidiaries | 15,796 | 54,420 |
Proceeds from the sale of servicing rights and other assets | 6,009 | 3,739 |
Decrease in restricted cash | 1,999 | 3,254 |
Purchase of available for sale securities | (7,289) | (7,716) |
Proceeds from the sale of available for sale securities | 7,220 | 9,969 |
Other investing activities, net | 1,275 | (2,303) |
Net cash (used in) provided by investing activities | (23,749) | 3,758 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
(Increase) decrease in intercompany receivables, net | 126,547 | 251,072 |
Net cash provided by financing activities | 126,547 | 251,072 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (223,869) | (95,179) |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 264,121 | 147,410 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 40,252 | 52,231 |
Cash paid during the period for: | ||
Income taxes, net | 5,176 | 63,648 |
Nonguarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (26,528) | (2,976) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (6,640) | (9,738) |
Acquisition of businesses (other than Global Workplace Solutions (GWS)), including net assets acquired, intangibles and goodwill | (626) | (2,155) |
Contributions to unconsolidated subsidiaries | (3,481) | (91) |
Distributions from unconsolidated subsidiaries | 199 | 1,151 |
Proceeds from the sale of servicing rights and other assets | 5,356 | 1,864 |
Decrease in restricted cash | 8,464 | 6,517 |
Other investing activities, net | (48) | |
Net cash (used in) provided by investing activities | 3,224 | (2,452) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of notes payable on real estate held for investment | (435) | |
Proceeds from notes payable on real estate held for sale and under development | 1,711 | 12,427 |
Repayment of notes payable on real estate held for sale and under development | (2,744) | (4,102) |
Non-controlling interest contributions | 1,574 | 27 |
Non-controlling interest distributions | (744) | (1,138) |
Payment of financing costs | (110) | |
(Increase) decrease in intercompany receivables, net | 11,239 | 43,959 |
Other financing activities, net | (2) | (413) |
Net cash provided by financing activities | 10,599 | 50,650 |
Effect of currency exchange rate changes on cash and cash equivalents | 15,490 | 3,846 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 2,785 | 49,068 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 481,559 | 384,509 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 484,344 | 433,577 |
Cash paid during the period for: | ||
Interest | 40 | 281 |
Income taxes, net | $ 32,157 | $ 19,330 |