2022 Q1 Form 10-Q Financial Statement

#000113811822000018 Filed on May 09, 2022

View on sec.gov

Income Statement

Concept 2022 Q1 2021 Q1
Revenue $7.333B $5.939B
YoY Change 23.47% 0.84%
Cost Of Revenue $5.752B $4.720B
YoY Change 21.88% 0.15%
Gross Profit $1.581B $1.219B
YoY Change 29.64% 3.64%
Gross Profit Margin 21.56% 20.53%
Selling, General & Admin $1.066B $828.3M
YoY Change 28.7% 4.83%
% of Gross Profit 67.44% 67.93%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $149.0M $122.1M
YoY Change 22.06% 7.29%
% of Gross Profit 9.43% 10.01%
Operating Expenses $1.215B $950.5M
YoY Change 27.83% 5.16%
Operating Profit $377.0M $269.1M
YoY Change 40.09% 22.15%
Interest Expense $30.05M $73.50M
YoY Change -59.12% 1497.83%
% of Operating Profit 7.97% 27.31%
Other Income/Expense, Net -$14.46M $2.732M
YoY Change -629.43% -1515.54%
Pretax Income $392.5M $345.3M
YoY Change 13.68% 53.67%
Income Tax -$3.738M $76.33M
% Of Pretax Income -0.95% 22.1%
Net Earnings $392.3M $266.2M
YoY Change 47.37% 54.59%
Net Earnings / Revenue 5.35% 4.48%
Basic Earnings Per Share $1.18 $0.79
Diluted Earnings Per Share $1.16 $0.78
COMMON SHARES
Basic Shares Outstanding 331.9M shares 335.9M shares
Diluted Shares Outstanding 337.1M shares 339.6M shares

Balance Sheet

Concept 2022 Q1 2021 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.657B $1.910B
YoY Change -13.23% 204.14%
Cash & Equivalents $1.657B $1.910B
Short-Term Investments
Other Short-Term Assets $543.4M $318.7M
YoY Change 70.5% -53.27%
Inventory
Prepaid Expenses $333.7M $281.7M
Receivables $5.073B $4.233B
Other Receivables $1.239B $758.0M
Total Short-Term Assets $9.334B $7.906B
YoY Change 18.05% 8.84%
LONG-TERM ASSETS
Property, Plant & Equipment $792.7M $774.3M
YoY Change 2.38% -59.18%
Goodwill $4.977B $3.805B
YoY Change 30.81% 3.56%
Intangibles $2.339B $1.370B
YoY Change 70.64%
Long-Term Investments $1.124B $682.6M
YoY Change 64.72% 61.36%
Other Assets $869.7M $748.6M
YoY Change 16.17% 8.28%
Total Long-Term Assets $11.81B $9.342B
YoY Change 26.41% 11.0%
TOTAL ASSETS
Total Short-Term Assets $9.334B $7.906B
Total Long-Term Assets $11.81B $9.342B
Total Assets $21.14B $17.25B
YoY Change 22.58% 10.0%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.882B $2.469B
YoY Change 16.72% 4.4%
Accrued Expenses $2.706B $2.218B
YoY Change 22.01% 4.87%
Deferred Revenue $295.6M $174.4M
YoY Change 69.5% 62.99%
Short-Term Debt $1.413B $681.0M
YoY Change 107.48% -46.12%
Long-Term Debt Due $37.08M $1.402M
YoY Change 2544.51% -18.39%
Total Short-Term Liabilities $7.790B $5.773B
YoY Change 34.94% -4.82%
LONG-TERM LIABILITIES
Long-Term Debt $1.526B $1.848B
YoY Change -17.43% 5.35%
Other Long-Term Liabilities $950.2M $608.8M
YoY Change 56.07% 31.87%
Total Long-Term Liabilities $2.476B $2.457B
YoY Change 0.78% 10.87%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.790B $5.773B
Total Long-Term Liabilities $2.476B $2.457B
Total Liabilities $11.86B $9.593B
YoY Change 23.64% 0.86%
SHAREHOLDERS EQUITY
Retained Earnings $8.759B $6.796B
YoY Change 28.88% 14.22%
Common Stock $412.5M $1.017B
YoY Change -59.43% -1.31%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $8.470B $7.230B
YoY Change
Total Liabilities & Shareholders Equity $21.14B $17.25B
YoY Change 22.58% 10.0%

Cashflow Statement

Concept 2022 Q1 2021 Q1
OPERATING ACTIVITIES
Net Income $392.3M $266.2M
YoY Change 47.37% 54.59%
Depreciation, Depletion And Amortization $149.0M $122.1M
YoY Change 22.06% 7.29%
Cash From Operating Activities -$393.5M -$193.4M
YoY Change 103.42% 50.22%
INVESTING ACTIVITIES
Capital Expenditures $42.06M $29.60M
YoY Change 42.1% -52.45%
Acquisitions
YoY Change
Other Investing Activities $4.487M -$16.00K
YoY Change -28143.75% -99.82%
Cash From Investing Activities -$95.62M -$193.9M
YoY Change -50.69% 110.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $367.9M $61.11M
YoY Change 501.99% 22.15%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$209.0M $402.0M
YoY Change -152.0% -496.37%
NET CHANGE
Cash From Operating Activities -$393.5M -$193.4M
Cash From Investing Activities -$95.62M -$193.9M
Cash From Financing Activities -$209.0M $402.0M
Net Change In Cash -$747.2M -$37.54M
YoY Change 1890.28% -89.6%
FREE CASH FLOW
Cash From Operating Activities -$393.5M -$193.4M
Capital Expenditures $42.06M $29.60M
Free Cash Flow -$435.6M -$223.0M
YoY Change 95.28% 16.77%

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CY2022Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Earnings1
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CY2022Q1 us-gaap Basis Of Accounting
BasisOfAccounting
Basis of Presentation<div style="margin-top:12pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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, 2021, which are included in our </span><span style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001138118/000113811822000010/cbre-20211231.htm" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">2021 Annual Report on Form 10-K (2021 Annual Report)</a></span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">,</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> filed with the United States Securities and Exchange Commission (SEC) and also available on our website (www.cbre.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Significant Accounting Policies, in the notes to consolidated financial statements in our </span><span style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001138118/000113811822000010/cbre-20211231.htm" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">2021 Annual Report</a></span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> for further discussion of our significant accounting policies and estimates.</span></div><div style="margin-top:9pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Considerations Related to the Covid-19 Pandemic and the war in Ukraine</span></div><div style="margin-top:12pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">From 2010 to early 2020, commercial real estate markets had generally been characterized by increased demand for space, falling vacancies, higher rents and strong capital flows, leading to solid property sales and leasing activity. This healthy backdrop changed abruptly in the first quarter of 2020 with the emergence of the novel coronavirus (Covid-19) and resultant sharp contraction of economic activity across much of the world. There was a significant impact on commercial real estate markets, as many property owners and occupiers put transactions on hold and withdrew existing mandates, sharply reducing sales and leasing volumes. Subsequently commercial real estate markets recovered strongly beginning in 2021 and continuing into the first quarter of 2022. However, it is expected the pandemic has structurally changed the utilization of many types of commercial real estate, which is likely to impact our business. In addition, Russia’s invasion of Ukraine on February 24, 2022 and the ongoing military conflict poses heightened risk, particularly for our operations in central and eastern Europe, and could exacerbate macro-economic challenges, including supply chain disruptions and persistently high inflation, as well as adversely affect business and/or consumer sentiment and overall economic growth. As a result of this conflict, we elected to exit most of our business in Russia, although we have a limited number of employees managing facilities for existing global clients that continue to operate there.</span></div><div style="margin-top:9pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">See Note 10 (Commitments and Contingencies) for further discussion of Covid-19 considerations.</span></div><div style="margin-top:9pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Financial Statement Preparation</span></div><div style="margin-top:9pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or General Accepted Accounting Principles (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, including the impact Covid-19 and the war in Ukraine may have on our business. These estimates and the underlying assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.</span></div>
CY2022Q1 us-gaap Use Of Estimates
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The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, including the impact Covid-19 and the war in Ukraine may have on our business. These estimates and the underlying assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.
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CY2022Q1 cbre Other Noncash Increases Decreases In Finance Lease Right Of Use Assets
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CY2022Q1 cbre Funded Loan Principal Amount Outstanding
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CY2021Q4 cbre Loan Loss Sharing Reserve
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CY2022Q1 us-gaap Letters Of Credit Outstanding Amount
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CY2022Q1 cbre Guarantor Obligations Maximum Exposure Undiscounted
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CY2022Q1 cbre Guarantor Obligations Maximum Exposure Undiscounted
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CY2021Q1 us-gaap Income Tax Expense Benefit
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CY2022Q1 us-gaap Effective Income Tax Rate Continuing Operations
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CY2022Q1 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2022Q1 cbre Discrete Net Income Tax Expense Benefit
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CY2022Q1 us-gaap Unrecognized Tax Benefits
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CY2021Q4 us-gaap Unrecognized Tax Benefits
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CY2022Q1 us-gaap Unrecognized Tax Benefits Period Increase Decrease
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CY2022Q1 us-gaap Net Income Loss
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392297000 USD
CY2021Q1 us-gaap Net Income Loss
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CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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331925104 shares
CY2021Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2022Q1 us-gaap Earnings Per Share Basic
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CY2021Q1 us-gaap Earnings Per Share Basic
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CY2021Q1 us-gaap Net Income Loss
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CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2022Q1 us-gaap Incremental Common Shares Attributable To Contingently Issuable Shares
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CY2021Q1 us-gaap Incremental Common Shares Attributable To Contingently Issuable Shares
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CY2022Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2021Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2022Q1 us-gaap Earnings Per Share Diluted
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CY2021Q1 us-gaap Earnings Per Share Diluted
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CY2022Q1 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
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CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021Q1 us-gaap Revenues
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CY2022Q1 us-gaap Contract With Customer Asset Net
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CY2022Q1 us-gaap Contract With Customer Asset Net Current
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CY2021Q4 us-gaap Contract With Customer Asset Net
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CY2021Q4 us-gaap Contract With Customer Asset Net Current
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CY2022Q1 us-gaap Contract With Customer Liability
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CY2022Q1 us-gaap Contract With Customer Liability Current
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CY2021Q4 us-gaap Contract With Customer Liability
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CY2022Q1 us-gaap Contract With Customer Liability Revenue Recognized
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CY2022Q1 cbre Adjusted Earnings Before Interest Taxes Depreciation And Amortization
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835442000 USD
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CY2022Q1 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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CY2022Q1 us-gaap Profit Loss
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CY2022Q1 us-gaap Depreciation And Amortization
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CY2021Q1 us-gaap Depreciation And Amortization
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CY2022Q1 us-gaap Asset Impairment Charges
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CY2021Q1 us-gaap Asset Impairment Charges
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CY2022Q1 us-gaap Income Tax Expense Benefit
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CY2021Q1 us-gaap Income Tax Expense Benefit
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CY2022Q1 cbre Carried Interest Incentive Compensation Expense Reversal
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22856000 USD
CY2021Q1 cbre Carried Interest Incentive Compensation Expense Reversal
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CY2022Q1 cbre Impact Of Fair Value Adjustments To Assets Acquired In Business
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CY2022Q1 us-gaap Restructuring Costs
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1676000 USD
CY2021Q1 us-gaap Restructuring Costs
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CY2022Q1 us-gaap Business Combination Integration Related Costs
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8121000 USD
CY2021Q1 us-gaap Business Combination Integration Related Costs
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CY2022Q1 us-gaap Revenues
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CY2021Q1 us-gaap Revenues
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5938879000 USD

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