2019 Q1 Form 10-Q Financial Statement

#000156459019018435 Filed on May 10, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 Q1
Revenue $5.136B $4.674B
YoY Change 9.88% 15.38%
Cost Of Revenue $4.022B $3.620B
YoY Change 11.11% 15.05%
Gross Profit $1.113B $1.054B
YoY Change 5.64% 16.53%
Gross Profit Margin 21.68% 22.55%
Selling, General & Admin $796.0M $732.2M
YoY Change 8.71% 20.71%
% of Gross Profit 71.49% 69.47%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $105.8M $108.2M
YoY Change -2.22% 15.11%
% of Gross Profit 9.5% 10.27%
Operating Expenses $907.7M $840.3M
YoY Change 8.02% 38.61%
Operating Profit $145.0M $213.6M
YoY Change -32.13% 4.09%
Interest Expense $22.73M $28.86M
YoY Change -21.25% -15.15%
% of Operating Profit 15.67% 13.51%
Other Income/Expense, Net $20.85M -$4.280M
YoY Change -587.22% -204.01%
Pretax Income $214.7M $196.3M
YoY Change 9.38% 1.84%
Income Tax $43.88M $46.16M
% Of Pretax Income 20.44% 23.52%
Net Earnings $164.4M $150.3M
YoY Change 9.4% 9.68%
Net Earnings / Revenue 3.2% 3.22%
Basic Earnings Per Share $0.49 $0.44
Diluted Earnings Per Share $0.48 $0.44
COMMON SHARES
Basic Shares Outstanding 336.0M shares 338.9M
Diluted Shares Outstanding 340.2M shares 342.6M

Balance Sheet

Concept 2019 Q1 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $605.0M $643.0M
YoY Change -5.91% 20.64%
Cash & Equivalents $605.0M $721.8M
Short-Term Investments
Other Short-Term Assets $688.0M $567.0M
YoY Change 21.34% 20.13%
Inventory
Prepaid Expenses
Receivables $3.801B $3.322B
Other Receivables $1.606B $1.223B
Total Short-Term Assets $6.997B $5.754B
YoY Change 21.6% 35.55%
LONG-TERM ASSETS
Property, Plant & Equipment $1.729B $634.0M
YoY Change 172.71% 14.86%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $228.0M $229.0M
YoY Change -0.44% -5.37%
Other Assets $736.0M $613.0M
YoY Change 20.07% 31.83%
Total Long-Term Assets $7.696B $6.153B
YoY Change 25.08% 8.29%
TOTAL ASSETS
Total Short-Term Assets $6.997B $5.754B
Total Long-Term Assets $7.696B $6.153B
Total Assets $14.69B $11.91B
YoY Change 23.4% 19.95%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.834B $1.505B
YoY Change 21.86% 13.93%
Accrued Expenses $1.994B $1.525B
YoY Change 30.75% 28.37%
Deferred Revenue $115.1M
YoY Change
Short-Term Debt $1.897B $1.611B
YoY Change 17.77% 103.67%
Long-Term Debt Due $2.573M $0.00
YoY Change
Total Short-Term Liabilities $6.010B $4.870B
YoY Change 23.41% 40.22%
LONG-TERM LIABILITIES
Long-Term Debt $1.760B $1.758B
YoY Change 0.12% -31.03%
Other Long-Term Liabilities $447.8M $695.0M
YoY Change -35.57% 22.36%
Total Long-Term Liabilities $2.208B $2.453B
YoY Change -9.99% -21.3%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.010B $4.870B
Total Long-Term Liabilities $2.208B $2.453B
Total Liabilities $9.489B $7.550B
YoY Change 25.68% 12.43%
SHAREHOLDERS EQUITY
Retained Earnings $4.675B
YoY Change
Common Stock $1.130B
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $5.089B $4.358B
YoY Change
Total Liabilities & Shareholders Equity $14.69B $11.91B
YoY Change 23.4% 19.94%

Cashflow Statement

Concept 2019 Q1 2018 Q1
OPERATING ACTIVITIES
Net Income $164.4M $150.3M
YoY Change 9.4% 9.68%
Depreciation, Depletion And Amortization $105.8M $108.2M
YoY Change -2.22% 15.11%
Cash From Operating Activities -$392.6M -$250.0M
YoY Change 57.06% -22.23%
INVESTING ACTIVITIES
Capital Expenditures $56.98M $46.72M
YoY Change 21.95% 96.86%
Acquisitions
YoY Change
Other Investing Activities -$2.771M $6.439M
YoY Change -143.03% -696.2%
Cash From Investing Activities -$73.94M -$64.21M
YoY Change 15.15% 48.3%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $45.09M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 300.0M 181.3M
YoY Change 65.45% 65.76%
NET CHANGE
Cash From Operating Activities -392.6M -250.0M
Cash From Investing Activities -73.94M -64.21M
Cash From Financing Activities 300.0M 181.3M
Net Change In Cash -176.3M -103.0M
YoY Change 71.13% -56.92%
FREE CASH FLOW
Cash From Operating Activities -$392.6M -$250.0M
Capital Expenditures $56.98M $46.72M
Free Cash Flow -$449.6M -$296.7M
YoY Change 51.53% -14.04%

Facts In Submission

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CY2019Q1 us-gaap Basis Of Accounting
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<div align="left"> <table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;"> <tr> <td valign="top" style="width:5.08%;white-space:nowrap"> <p style="margin-top:0pt;text-align:justify;margin-bottom:0pt;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">1.</font></p></td> <td valign="top"> <p style="margin-top:0pt;text-align:justify;margin-bottom:0pt;font-weight:bold;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;"><a name="Notes_to_Financial_Stmts"></a><font style="font-weight:normal;"></font><a name="Notes_to_Financial_Stmts"></a>Basis of Presentation</p></td></tr></table></div> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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 &#8220;the company,&#8221; &#8220;we,&#8221; &#8220;us&#8221; and &#8220;our&#8221;), for the year ended December&#160;31, 2018, which are included in our <font style="text-decoration:none;">2018</font>&#160;<a href="http://www.sec.gov/Archives/edgar/data/1138118/000156459019005666/cbg-10k_20181231.htm"><font style="text-decoration:none;">Annual Report on Form 10-K (2018 Annual Report),</font>&#160;</a>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&#160;<a href="http://www.sec.gov/Archives/edgar/data/1138118/000156459019005666/cbg-10k_20181231.htm"></a><a href="http://www.sec.gov/Archives/edgar/data/1138118/000156459019005666/cbg-10k_20181231.htm"><font style="text-decoration:none;">2018 Annual Report</font>&#160;</a>for further discussion of our significant accounting policies and estimates.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or GAAP, for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported and reported amounts of revenue and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Certain reclassifications have been made to the 2018 financial statements to conform with the 2019 presentation.</p>
CY2019Q1 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div align="left"> <table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;"> <tr> <td valign="top" style="width:5.08%;white-space:nowrap"> <p style="margin-top:2pt;text-align:justify;margin-bottom:0pt;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">2.</font></p></td> <td valign="top"> <p style="margin-top:2pt;text-align:justify;margin-bottom:0pt;font-weight:bold;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">New Accounting Pronouncements</p></td></tr></table></div> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;margin-left:5.08%;text-indent:0%;;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Recently Adopted Accounting Pronouncements</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Financial Accounting Standards Board (FASB) previously issued six Accounting Standards Updates (ASUs) related to leases. The ASUs issued were: (1) in February 2016, ASU 2016-02,&#160;&#8220;<font style="font-style:italic;">Leases (Topic 842)</font>&#8221;, (2) in January 2018, ASU 2018-01, &#8220;<font style="font-style:italic;">Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842</font>&#8221;, (3) in July 2018, ASU 2018-10, &#8220;<font style="font-style:italic;">Codification Improvements to Topic 842, Leases</font>&#8221;, (4) in July 2018, ASU 2018-11, &#8220;<font style="font-style:italic;">Targeted Improvements</font>&#8221;, (5) in December 2018, ASU 2018-20, &#8220;<font style="font-style:italic;">Leases (Topic 842): Narrow-Scope Improvements for Lessors</font>&#8221; and (6) in March 2019, ASU 2019-01, &#8220;<font style="font-style:italic;">Leases (Topic 842): Codification Improvements.</font>&#8221; ASU 2016-02 requires lessees to recognize most leases on the balance sheet as liabilities, with corresponding right-of-use assets. For income statement recognition purposes, leases will be classified as either a finance or operating lease in a manner similar to the requirements under the previous lease accounting literature, but without relying upon the bright-line tests. The amendments in ASU 2018-01 specify how land easements are within the scope of ASC 842 and permit a practical expedient to not assess whether expired or existing land easements that were not previously accounted for as leases are leases under ASC 842. The amendments in ASU 2018-10 affect narrow aspects of the guidance issued in the amendments in ASU 2016-02. The amendments in ASU 2018-11 provide an optional method for adopting the new leasing guidance and provide lessors with a practical expedient to combine lease and associated non-lease components by class of underlying asset in contracts that meet certain criteria. The amendments in ASU 2018-20 provide an accounting policy election permitting lessors to treat certain sales and other similar taxes incurred as lessee costs, guidance on the treatment of certain lessor costs and guidance on recognizing variable payments for contracts with a lease and non-lease component. The amendments in ASU 2019-01 affect narrow aspects of the guidance issued in the amendments in ASU 2016-02. These ASUs are effective for annual periods in fiscal years beginning after&#160;December 15, 2018.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We adopted these ASUs in the first quarter of 2019 by using the optional transitional method associated with <font style="color:#000000;">no adjustment to comparative period financial statements presented for prior periods</font>. We elected certain practical expedients, including the package of transition practical expedients and the practical expedient to forego separating lease and non-lease components in our lessee contracts. We also made an accounting policy election to exempt short-term leases of 12 months or less from balance sheet recognition requirements associated with the new standard; fixed rental payments for short-term leases will be recognized as a straight-line expense over the lease term.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As a result of the adoption of the leasing guidance, the consolidated balance sheet as of January 1, 2019 reflected $1.2 billion of additional lease liabilities, along with corresponding right-of-use assets of $1.0 billion, reflecting adjustments for items such as prepaid and deferred rent, unamortized initial direct costs, and unamortized lease incentive balances.&nbsp;&nbsp;The adoption of the leasing guidance did not have a material impact on our consolidated statements of operations.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As of January 1, 2019, we account for leases in accordance with ASC Topic 842, &#8220;<font style="font-style:italic;">Leases</font>.&#8221;&nbsp;&nbsp;The present value of lease payments, which are either fixed payments, in-substance fixed payments, or variable payments tied to an index or rate are recognized on the balance sheet with corresponding lease liabilities and right-of-use assets upon the commencement of the lease.&nbsp;&nbsp;These lease costs are expensed over the respective lease term in accordance with the classification of the lease (i.e. operating versus finance classification).&nbsp;&nbsp;Variable lease payments not tied to an index or rate are expensed as incurred and not subject to capitalization.&#160;&#160;</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In January&#160;2017, the FASB issued ASU 2017&#8209;04, <font style="font-style:italic;">&#8220;Intangibles &#8211; Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.&#8221;</font>&nbsp;&nbsp;This ASU eliminates Step 2 from the goodwill impairment test. This ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. This ASU is effective for fiscal years beginning after December&#160;15, 2019, and interim periods within those years, with early adoption permitted. We elected to early adopt ASU 2017&#8209;04 in the first quarter of 2019. The adoption of ASU 2017&#8209;04 did not have any impact on our consolidated financial statements and related disclosures.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In March&#160;2017, the FASB issued ASU 2017&#8209;08, <font style="font-style:italic;">&#8220;Receivables &#8211; Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.&#8221;</font>&nbsp;&nbsp;This ASU requires the premium to be amortized to the earliest call date. This ASU does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This ASU is effective for fiscal years beginning after December&#160;15, 2018, and interim periods within those years, with early adoption permitted. We adopted ASU 2017-08 in the first quarter of 2019 and the adoption did not have a material impact on our consolidated financial statements and related disclosures.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The FASB previously issued two ASUs related to derivatives and hedging. The ASUs issued were: (1) in August 2017, ASU 2017-12,&#160;<font style="font-style:italic;">&#8220;Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities&#8221;</font> and (2) in October 2018, ASU 2018-16 <font style="font-style:italic;">&#8220;Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting.&#8221;</font> ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. ASU 2018-16 adds the OIS rate based on SOFR as a U.S. benchmark interest rate to facilitate the LIBOR to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. These ASUs are effective for fiscal years beginning after&#160;December 15, 2018, and interim periods within those years, with early adoption permitted. We adopted these ASUs in the first quarter of 2019 and the adoption did not have a material impact on our consolidated financial statements and related disclosures.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In February&#160;2018, the FASB issued ASU 2018&#8209;02, <font style="font-style:italic;">&#8220;Income Statement&#8212;Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.&#8221;</font> This ASU provides an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. We adopted ASU 2018-02 in the first quarter of 2019 and the adoption did not have a material impact on our consolidated financial statements and related disclosures.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In July&#160;2018, the FASB issued ASU 2018&#8209;09, <font style="font-style:italic;">&#8220;Codification Improvements.&#8221;</font> The amendments in ASU 2018&#8209;09 represent changes to clarify, correct errors in, or make minor improvements to the Codification, eliminating inconsistencies and providing clarifications in current guidance. This ASU is effective for fiscal years beginning after December 15, 2018. <font style="color:#000000;">We adopted ASU 2018-09 in the first quarter of 2019 and the adoption did not have a material impact on our consolidated financial statements and related disclosures.</font></p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;margin-left:5.08%;text-indent:0%;;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Recent Accounting Pronouncements Pending Adoption</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The FASB previously issued two ASUs related to financial instruments &#8211; credit losses. The ASUs issued were: (1) in June 2016, ASU 2016-13,&#160;<font style="font-style:italic;">&#8220;Financial Instruments &#8211; Credit Losses (Topic 326):&nbsp;&nbsp;Measurement of Credit Losses on Financial Instruments&#8221;</font> and (2) in November 2018, ASU 2018-19 <font style="font-style:italic;">&#8220;Codification Improvements to Topic 326, Financial Instruments&#8212;Credit Losses.&#8221;</font> ASU 2016-13 is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leasing standard. These ASUs are effective for fiscal years beginning after&#160;December 15, 2019, and interim periods within those years, with early adoption permitted. We are evaluating the effect that ASU 2016&#8209;13 and ASU 2018-19 will have on our consolidated financial statements and related disclosures.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In August&#160;2018, the FASB issued ASU 2018&#8209;13, <font style="font-style:italic;">&#8220;Fair Value Measurement (Topic 820): Disclosure Framework&#8212;Changes to the Disclosure Requirements for Fair Value Measurement.&#8221;</font> This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. As ASU 2018-13 only revises disclosure requirements, it will not have any impact on our consolidated financial statements. We are evaluating the effect, if any, that ASU 2018&#8209;13 will have on our disclosures.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In August&#160;2018, the FASB issued ASU 2018&#8209;14, <font style="font-style:italic;">&#8220;Compensation&#8212;Retirement Benefits&#8212;Defined Benefit Plans&#8212;General (Subtopic 715-20): Disclosure Framework&#8212;Changes to the Disclosure Requirements for Defined Benefit Plans.&#8221;</font> This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for fiscal years ending after December 15, 2020, with early adoption permitted. As ASU 2018-14 only revises disclosure requirements, it will not have any impact on our consolidated financial statements. We are evaluating the effect, if any, that ASU 2018&#8209;14 will have on our disclosures.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In October&#160;2018, the FASB issued ASU 2018&#8209;17, <font style="font-style:italic;">&#8220;Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities.&#8221;</font> This ASU amends the guidance for determining whether a decision-making fee is a variable interest and requires organizations to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP). This ASU is effective for fiscal years beginning after December&#160;15, 2019, and interim periods within those years, with early adoption permitted. We are evaluating the effect that ASU 2018&#8209;17 will have on our consolidated financial statements and related disclosures.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:5.08%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In November&#160;2018, the FASB issued ASU 2018&#8209;18, <font style="font-style:italic;">&#8220;Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606.&#8221;</font> This ASU provides guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within the revenue recognition standard and provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. This ASU is effective for fiscal years beginning after December&#160;15, 2019, and interim periods within those years, with early adoption permitted. We are evaluating the effect that ASU 2018&#8209;18 will have on our consolidated financial statements and related disclosures.</p> <p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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CY2019Q1 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
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0
CY2018Q1 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
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CY2019Q1 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
34348000
CY2019Q1 us-gaap Finance Lease Liability Noncurrent Statement Of Financial Position Extensible List
FinanceLeaseLiabilityNoncurrentStatementOfFinancialPositionExtensibleList
us-gaap:OtherLiabilitiesNoncurrent
CY2019Q1 cbre Operating And Finance Lease Liability
OperatingAndFinanceLeaseLiability
1214028000
CY2019Q1 us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
7169000
CY2019Q1 us-gaap Variable Lease Cost
VariableLeaseCost
16947000
CY2019Q1 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
FairValueAssetsLevel2ToLevel1TransfersAmount
0
CY2018Q1 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
FairValueAssetsLevel2ToLevel1TransfersAmount
0
CY2019Q1 us-gaap Fair Value Liabilities Level1 To Level2 Transfers Amount
FairValueLiabilitiesLevel1ToLevel2TransfersAmount
0
CY2018Q1 us-gaap Fair Value Liabilities Level1 To Level2 Transfers Amount
FairValueLiabilitiesLevel1ToLevel2TransfersAmount
0
CY2019Q1 us-gaap Fair Value Liabilities Level2 To Level1 Transfers Amount
FairValueLiabilitiesLevel2ToLevel1TransfersAmount
0
CY2018Q1 us-gaap Fair Value Liabilities Level2 To Level1 Transfers Amount
FairValueLiabilitiesLevel2ToLevel1TransfersAmount
0
CY2019Q1 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
89000000
CY2019Q1 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0
CY2018Q4 us-gaap Goodwill Gross
GoodwillGross
4720815000
CY2018Q4 us-gaap Goodwill Impaired Accumulated Impairment Loss
GoodwillImpairedAccumulatedImpairmentLoss
1068506000
CY2019Q1 us-gaap Goodwill Purchase Accounting Adjustments
GoodwillPurchaseAccountingAdjustments
7226000
CY2019Q1 us-gaap Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
4347000
CY2019Q1 us-gaap Goodwill Gross
GoodwillGross
4732388000
CY2019Q1 us-gaap Goodwill Impaired Accumulated Impairment Loss
GoodwillImpairedAccumulatedImpairmentLoss
1068506000
CY2018Q1 us-gaap Equity Method Investment Summarized Financial Information Revenue
EquityMethodInvestmentSummarizedFinancialInformationRevenue
343199000
CY2019Q1 cbre Equity Method Investment Summarized Financial Information Operating Profit Loss
EquityMethodInvestmentSummarizedFinancialInformationOperatingProfitLoss
94621000
CY2018Q1 cbre Equity Method Investment Summarized Financial Information Operating Profit Loss
EquityMethodInvestmentSummarizedFinancialInformationOperatingProfitLoss
136208000
CY2018Q1 us-gaap Equity Method Investment Summarized Financial Information Net Income Loss
EquityMethodInvestmentSummarizedFinancialInformationNetIncomeLoss
93996000
CY2019Q1 cbre Minimum Coverage Ratio Of Earnings Before Interest Tax Depreciation And Amortization To Interest Expense Expressed In Percentage
MinimumCoverageRatioOfEarningsBeforeInterestTaxDepreciationAndAmortizationToInterestExpenseExpressedInPercentage
2.00
CY2019Q1 cbre Maximum Leverage Ratio Of Debt To Earnings Before Interest Tax Depreciation And Amortization Expressed In Percentage
MaximumLeverageRatioOfDebtToEarningsBeforeInterestTaxDepreciationAndAmortizationExpressedInPercentage
4.25
CY2019Q1 cbre Maximum Leverage Ratio During First Four Quarter That Qualified Acquisition Is Consummated
MaximumLeverageRatioDuringFirstFourQuarterThatQualifiedAcquisitionIsConsummated
4.75
CY2019Q1 cbre Coverage Ratio Of Earnings Before Interest Tax Depreciation And Amortization To Interest Expense Expressed In Percentage
CoverageRatioOfEarningsBeforeInterestTaxDepreciationAndAmortizationToInterestExpenseExpressedInPercentage
22.74
CY2019Q1 cbre Leverage Ratio Of Debt To Earnings Before Interest Tax Depreciation And Amortization Expressed In Percentage
LeverageRatioOfDebtToEarningsBeforeInterestTaxDepreciationAndAmortizationExpressedInPercentage
0.80
CY2019Q1 us-gaap Finance Lease Right Of Use Asset
FinanceLeaseRightOfUseAsset
59638000
CY2019Q1 us-gaap Finance Lease Right Of Use Asset Statement Of Financial Position Extensible List
FinanceLeaseRightOfUseAssetStatementOfFinancialPositionExtensibleList
us-gaap:OtherAssetsNoncurrent
CY2019Q1 cbre Operating And Finance Lease Right Of Use Asset
OperatingAndFinanceLeaseRightOfUseAsset
998319000
CY2019Q1 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
25007000
CY2019Q1 us-gaap Finance Lease Liability Current Statement Of Financial Position Extensible List
FinanceLeaseLiabilityCurrentStatementOfFinancialPositionExtensibleList
us-gaap:OtherLiabilitiesCurrent
CY2019Q1 us-gaap Lease Cost
LeaseCost
70808000
CY2019Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P9Y
CY2019Q1 us-gaap Finance Lease Weighted Average Remaining Lease Term1
FinanceLeaseWeightedAverageRemainingLeaseTerm1
P3Y
CY2019Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.034
CY2019Q1 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.020
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
140874000
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
183229000
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
177613000
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
152999000
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
133500000
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
550913000
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
1339128000
CY2019Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
184455000
CY2018Q1 cbre Incremental Common Shares Attributable To Stock Options
IncrementalCommonSharesAttributableToStockOptions
1569
CY2019Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
1154673000
CY2019Q1 us-gaap Finance Lease Liability Payments Remainder Of Fiscal Year
FinanceLeaseLiabilityPaymentsRemainderOfFiscalYear
19571000
CY2019Q1 us-gaap Finance Lease Liability Payments Due Year Two
FinanceLeaseLiabilityPaymentsDueYearTwo
20948000
CY2019Q1 us-gaap Finance Lease Liability Payments Due Year Three
FinanceLeaseLiabilityPaymentsDueYearThree
13342000
CY2019Q1 us-gaap Finance Lease Liability Payments Due Year Four
FinanceLeaseLiabilityPaymentsDueYearFour
6134000
CY2019Q1 us-gaap Finance Lease Liability Payments Due Year Five
FinanceLeaseLiabilityPaymentsDueYearFive
1286000
CY2019Q1 us-gaap Finance Lease Liability Payments Due After Year Five
FinanceLeaseLiabilityPaymentsDueAfterYearFive
25000
CY2019Q1 us-gaap Finance Lease Liability Payments Due
FinanceLeaseLiabilityPaymentsDue
61306000
CY2019Q1 us-gaap Finance Lease Liability Undiscounted Excess Amount
FinanceLeaseLiabilityUndiscountedExcessAmount
1951000
CY2019Q1 us-gaap Finance Lease Liability
FinanceLeaseLiability
59355000
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
238954000
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
219351000
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
202205000
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
172267000
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
145705000
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
510741000
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
1489223000
CY2019Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
35573000
CY2019Q1 us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
279000
CY2019Q1 us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
7414000
CY2019Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
47467000
CY2019Q1 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability
2668000
CY2019Q1 cbre Other Noncash Increases Decreases In Right Of Use Assets
OtherNoncashIncreasesDecreasesInRightOfUseAssets
1372000
CY2019Q1 cbre Loan Loss Sharing Reserve
LoanLossSharingReserve
40300000
CY2019Q1 cbre Assets Available For Recourse
AssetsAvailableForRecourse
618200000
CY2019Q1 us-gaap Loans Receivable Mortgage Warehouse Lending
LoansReceivableMortgageWarehouseLending
331400000
CY2019Q1 us-gaap Letters Of Credit Outstanding Amount
LettersOfCreditOutstandingAmount
74900000
CY2019Q1 cbre Line Of Credit Facility Latest Expiration Date
LineOfCreditFacilityLatestExpirationDate
2020-02
CY2019Q1 cbre Guarantor Obligations Maximum Exposure Undiscounted
GuarantorObligationsMaximumExposureUndiscounted
62300000
CY2019Q1 cbre Commitments To Investment In Future Real Estate Investment
CommitmentsToInvestmentInFutureRealEstateInvestment
49100000
CY2019Q1 cbre Commitments To Investment In Unconsolidated Entity
CommitmentsToInvestmentInUnconsolidatedEntity
50300000
CY2019Q1 us-gaap Incremental Common Shares Attributable To Contingently Issuable Shares
IncrementalCommonSharesAttributableToContingentlyIssuableShares
4137968
CY2018Q1 us-gaap Incremental Common Shares Attributable To Contingently Issuable Shares
IncrementalCommonSharesAttributableToContingentlyIssuableShares
3698143
CY2018 us-gaap Stock Repurchased And Retired During Period Shares
StockRepurchasedAndRetiredDuringPeriodShares
3980656
CY2018 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
161000000
CY2019Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
4999172000
CY2019Q1 cbre Revenue Not From Contract With Customer Excluding Assessed Tax
RevenueNotFromContractWithCustomerExcludingAssessedTax
136338000
CY2018Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
4554403000
CY2018Q1 cbre Revenue Not From Contract With Customer Excluding Assessed Tax
RevenueNotFromContractWithCustomerExcludingAssessedTax
119549000
CY2019Q1 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
412400000
CY2018Q4 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
381800000
CY2019Q1 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
126000000
CY2018Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
92500000
CY2019Q1 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
61800000
CY2019Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
3
CY2019Q1 cbre Adjusted Earnings Before Interest Taxes Depreciation And Amortization
AdjustedEarningsBeforeInterestTaxesDepreciationAndAmortization
450032000
CY2018Q1 cbre Adjusted Earnings Before Interest Taxes Depreciation And Amortization
AdjustedEarningsBeforeInterestTaxesDepreciationAndAmortization
347807000
CY2019Q1 cbre Income Loss Before Net Interest Expense Write Off Of Financing Costs Income Taxes Depreciation And Amortization
IncomeLossBeforeNetInterestExpenseWriteOffOfFinancingCostsIncomeTaxesDepreciationAndAmortization
426947000
CY2018Q1 cbre Income Loss Before Net Interest Expense Write Off Of Financing Costs Income Taxes Depreciation And Amortization
IncomeLossBeforeNetInterestExpenseWriteOffOfFinancingCostsIncomeTaxesDepreciationAndAmortization
357836000
CY2019Q1 us-gaap Restructuring Charges
RestructuringCharges
15749000
CY2019Q1 cbre Carried Interest Incentive Compensation Expense Reversal
CarriedInterestIncentiveCompensationExpenseReversal
7336000
CY2018Q1 cbre Carried Interest Incentive Compensation Expense Reversal
CarriedInterestIncentiveCompensationExpenseReversal
-10029000
CY2019Q1 us-gaap Investments In Affiliates Subsidiaries Associates And Joint Ventures
InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures
228406000
CY2019Q1 cbre Long Term Debt Excluding Loans Payable
LongTermDebtExcludingLoansPayable
1760181000
CY2018Q4 us-gaap Investments In Affiliates Subsidiaries Associates And Joint Ventures
InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures
216174000
CY2018Q4 cbre Long Term Debt Excluding Loans Payable
LongTermDebtExcludingLoansPayable
1767260000
CY2019Q1 cbre Proceeds From Payments Of Merger Related Costs Financing Activities
ProceedsFromPaymentsOfMergerRelatedCostsFinancingActivities
-17185000
CY2018Q1 cbre Proceeds From Payments Of Merger Related Costs Financing Activities
ProceedsFromPaymentsOfMergerRelatedCostsFinancingActivities
-8049000

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