Guarantor and Nonguarantor Financial Statements

12 Months Ended

Dec. 31, 2012

Guarantor and Nonguarantor Financial Statements

23. Guarantor and Nonguarantor Financial Statements

The following condensed consolidating financial information includes:

(1) Condensed consolidating balance sheets as of December 31, 2012 and 2011; condensed consolidating statements of operations for the years ended December 31, 2012, 2011 and 2010; condensed consolidating statements of comprehensive income (loss) for the years ended December 31, 2012, 2011 and 2010; and condensed consolidating statements of cash flows for the years ended December 31, 2012, 2011 and 2010, of (a) CBRE Group, Inc. as the parent, (b) CBRE as the subsidiary issuer, (c) the guarantor subsidiaries, (d) the nonguarantor subsidiaries and (e) CBRE Group, Inc. on a consolidated basis; and

(2) Elimination entries necessary to consolidate CBRE Group, Inc. as the parent, with CBRE and its guarantor and nonguarantor subsidiaries.

Investments in consolidated subsidiaries are presented using the equity method of accounting. The principal elimination entries eliminate investments in consolidated subsidiaries and intercompany balances and transactions.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2012

(Dollars in thousands)

	Parent		CBRE		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Elimination			Consolidated Total
Current Assets:
Cash and cash equivalents	$	5	$	18,312	$	705,282	$	365,698	$	—		$	1,089,297
Restricted cash		—		6,863		13,244		53,569		—			73,676
Receivables, net		—		5		469,163		793,655		—			1,262,823
Warehouse receivables (a)		—		—		1,048,340		—		—			1,048,340
Trading securities		—		—		113		101,218		—			101,331
Income taxes receivable		17,637		6,580		—		49,233		(55,603	)		17,847
Prepaid expenses		—		—		48,640		52,977		—			101,617
Deferred tax assets, net		—		—		156,112		49,634		—			205,746
Real estate and other assets held for sale		—		—		—		130,499		—			130,499
Available for sale securities		—		—		679		—		—			679
Other current assets		—		—		30,674		22,021		—			52,695
Total Current Assets		17,642		31,760		2,472,247		1,618,504		(55,603	)		4,084,550
Property and equipment, net		—		—		263,661		115,515		—			379,176
Goodwill		—		—		1,023,842		865,760		—			1,889,602
Other intangible assets, net		—		—		539,031		247,762		—			786,793
Investments in unconsolidated subsidiaries		—		—		119,402		87,396		—			206,798
Investments in consolidated subsidiaries		1,912,207		2,529,531		1,246,841		—		(5,688,579	)		—
Intercompany loan receivable		—		1,521,065		700,000		—		(2,221,065	)		—
Real estate under development		—		—		799		26,517		—			27,316
Real estate held for investment		—		—		4,006		231,039		—			235,045
Available for sale securities		—		—		53,980		3,141		—			57,121
Other assets, net		—		41,035		67,099		35,007		—			143,141
Total Assets	$	1,929,849	$	4,123,391	$	6,490,908	$	3,230,641	$	(7,965,247	)	$	7,809,542
Current Liabilities:
Accounts payable and accrued expenses	$	—	$	8,956	$	140,476	$	432,862	$	—		$	582,294
Compensation and employee benefits payable		—		626		252,365		187,200		—			440,191
Accrued bonus and profit sharing		—		—		298,591		241,553		—			540,144
Securities sold, not yet purchased		—		—		—		54,103		—			54,103
Income taxes payable		—		—		55,603		—		(55,603	)		—
Short-term borrowings:
Warehouse lines of credit (a)		—		—		1,026,381		—		—			1,026,381
Revolving credit facility		—		10,557		—		62,407		—			72,964
Other		—		—		16		—		—			16
Total short-term borrowings		—		10,557		1,026,397		62,407		—			1,099,361
Current maturities of long-term debt		—		46,000		2,439		24,717		—			73,156
Notes payable on real estate		—		—		—		35,212		—			35,212
Liabilities related to real estate and other assets held for sale		—		—		—		104,627		—			104,627
Other current liabilities		—		—		40,989		2,216		—			43,205
Total Current Liabilities		—		66,139		1,816,860		1,144,897		(55,603	)		2,972,293
Long-Term Debt:
Senior secured term loans		—		1,306,500		—		250,569		—			1,557,069
11.625% senior subordinated notes, net		—		440,523		—		—		—			440,523
6.625% senior notes		—		350,000		—		—		—			350,000
Other long-term debt		—		—		6,752		105		—			6,857
Intercompany loan payable		390,638		—		1,779,055		51,372		(2,221,065	)		—
Total Long-Term Debt		390,638		2,097,023		1,785,807		302,046		(2,221,065	)		2,354,449
Notes payable on real estate		—		—		—		189,258		—			189,258
Deferred tax liabilities, net		—		—		148,676		43,286		—			191,962
Non-current tax liabilities		—		—		77,451		4,424		—			81,875
Pension liability		—		—		—		63,528		—			63,528
Other liabilities		—		48,022		132,583		93,760		—			274,365
Total Liabilities		390,638		2,211,184		3,961,377		1,841,199		(2,276,668	)		6,127,730
Commitments and contingencies		—		—		—		—		—			—
Equity:
CBRE Group, Inc. Stockholders’ Equity		1,539,211		1,912,207		2,529,531		1,246,841		(5,688,579	)		1,539,211
Non-controlling interests		—		—		—		142,601		—			142,601
Total Equity		1,539,211		1,912,207		2,529,531		1,389,442		(5,688,579	)		1,681,812
Total Liabilities and Equity	$	1,929,849	$	4,123,391	$	6,490,908	$	3,230,641	$	(7,965,247	)	$	7,809,542

(a) Although CBRE Capital Markets is included among our domestic subsidiaries, which jointly and severally guarantee our 11.625% senior subordinated notes, our 6.625% senior notes and our Credit Agreement, a substantial majority of warehouse receivables funded under the JP Morgan Master Repurchase Agreement, BofA, Capital One, TD Bank, JP Morgan and Fannie Mae ASAP lines of credit are pledged to JP Morgan, BofA, Capital One, TD Bank and Fannie Mae, and accordingly, are not included as collateral for these notes or our other outstanding debt.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2011

(Dollars in thousands)

	Parent		CBRE		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Elimination			Consolidated Total
Current Assets:
Cash and cash equivalents	$	5	$	298,370	$	375,176	$	419,631	$	—		$	1,093,182
Restricted cash		—		4,845		21,827		40,466		—			67,138
Receivables, net		—		—		405,902		729,469		—			1,135,371
Warehouse receivables (a)		—		—		720,061		—		—			720,061
Trading securities		—		—		83		151,401		—			151,484
Income taxes receivable		15,526		6,879		—		3,669		(26,074	)		—
Prepaid expenses		—		—		46,040		65,839		—			111,879
Deferred tax assets, net		—		—		143,065		25,874		—			168,939
Real estate under development		—		—		—		30,617		—			30,617
Real estate and other assets held for sale		—		—		—		26,201		—			26,201
Available for sale securities		—		—		2,790		—		—			2,790
Other current assets		—		—		26,468		15,917		—			42,385
Total Current Assets		15,531		310,094		1,741,412		1,509,084		(26,074	)		3,550,047
Property and equipment, net		—		—		202,674		92,814		—			295,488
Goodwill		—		—		1,004,875		823,532		—			1,828,407
Other intangible assets, net		—		—		510,219		284,106		—			794,325
Investments in unconsolidated subsidiaries		—		—		105,664		61,168		—			166,832
Investments in consolidated subsidiaries		1,432,638		1,832,044		1,211,409		—		(4,476,091	)		—
Intercompany loan receivable		—		1,490,897		700,000		34,378		(2,225,275	)		—
Real estate under development		—		—		693		3,259		—			3,952
Real estate held for investment		—		—		4,007		399,691		—			403,698
Available for sale securities		—		—		34,605		—		—			34,605
Other assets, net		—		49,389		48,603		43,797		—			141,789
Total Assets	$	1,448,169	$	3,682,424	$	5,564,161	$	3,251,829	$	(6,727,440	)	$	7,219,143
Current Liabilities:
Accounts payable and accrued expenses	$	—	$	11,674	$	151,260	$	411,202	$	—		$	574,136
Compensation and employee benefits payable		—		626		208,692		189,370		—			398,688
Accrued bonus and profit sharing		—		—		308,748		235,880		—			544,628
Securities sold, not yet purchased		—		—		—		98,810		—			98,810
Income taxes payable		—		—		54,442		—		(26,074	)		28,368
Short-term borrowings:
Warehouse lines of credit (a)		—		—		713,362		—		—			713,362
Revolving credit facility		—		10,098		—		34,727		—			44,825
Other		—		—		16		—		—			16
Total short-term borrowings		—		10,098		713,378		34,727		—			758,203
Current maturities of long-term debt		—		46,000		—		21,838		—			67,838
Notes payable on real estate		—		—		—		146,120		—			146,120
Liabilities related to real estate and other assets held for sale		—		—		—		21,482		—			21,482
Other current liabilities		—		—		39,885		2,490		—			42,375
Total Current Liabilities		—		68,398		1,476,405		1,161,919		(26,074	)		2,680,648
Long-Term Debt:
Senior secured term loans		—		1,352,500		—		263,273		—			1,615,773
11.625% senior subordinated notes, net		—		439,016		—		—		—			439,016
6.625% senior notes		—		350,000		—		—		—			350,000
Other long-term debt		—		—		—		59		—			59
Intercompany loan payable		296,688		—		1,928,587		—		(2,225,275	)		—
Total Long-Term Debt		296,688		2,141,516		1,928,587		263,332		(2,225,275	)		2,404,848
Notes payable on real estate		—		—		—		206,339		—			206,339
Deferred tax liabilities, net		—		—		135,500		13,469		—			148,969
Non-current tax liabilities		—		—		77,595		2,332		—			79,927
Pension liability		—		—		—		60,860		—			60,860
Other liabilities		—		39,872		114,030		66,487		—			220,389
Total Liabilities		296,688		2,249,786		3,732,117		1,774,738		(2,251,349	)		5,801,980
Commitments and contingencies		—		—		—		—		—			—
Equity:
CBRE Group, Inc. Stockholders’ Equity		1,151,481		1,432,638		1,832,044		1,211,409		(4,476,091	)		1,151,481
Non-controlling interests		—		—		—		265,682		—			265,682
Total Equity		1,151,481		1,432,638		1,832,044		1,477,091		(4,476,091	)		1,417,163
Total Liabilities and Equity	$	1,448,169	$	3,682,424	$	5,564,161	$	3,251,829	$	(6,727,440	)	$	7,219,143

(a) Although CBRE Capital Markets is included among our domestic subsidiaries, which jointly and severally guarantee our 11.625% senior subordinated notes, our 6.625% senior notes and our Credit Agreement, a substantial majority of warehouse receivables funded under the Kemps Landing, JP Morgan, TD Bank, Fannie Mae ASAP Program and BofA lines of credit are pledged to Kemps Landing, JP Morgan, TD Bank, Fannie Mae and BofA, and accordingly, are not included as collateral for these notes or our other outstanding debt.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2012

(Dollars in thousands)

	Parent			CBRE			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Elimination			Consolidated Total
Revenue	$	—		$	—		$	3,875,199		$	2,638,900		$	—		$	6,514,099
Costs and expenses:
Cost of services		—			—			2,331,776			1,410,738			—			3,742,514
Operating, administrative and other		47,344			7,367			943,694			1,004,509			—			2,002,914
Depreciation and amortization		—			—			93,733			75,912			—			169,645
Non-amortizable intangible asset impairment		—			—			—			19,826			—			19,826
Total costs and expenses		47,344			7,367			3,369,203			2,510,985			—			5,934,899
Gain on disposition of real estate		—			—			—			5,881			—			5,881
Operating (loss) income		(47,344	)		(7,367	)		505,996			133,796			—			585,081
Equity income (loss) from unconsolidated subsidiaries		—			—			62,818			(2,089	)		—			60,729
Other income		—			—			1,500			9,593			—			11,093
Interest income		—			133,205			3,370			4,235			(133,167	)		7,643
Interest expense		—			143,500			130,944			33,791			(133,167	)		175,068
Royalty and management service (income) expense		—			—			(38,380	)		38,380			—			—
Income from consolidated subsidiaries		345,262			356,344			36,492			—			(738,098	)		—
Income from continuing operations before (benefit of) provision for income taxes		297,918			338,682			517,612			73,364			(738,098	)		489,478
(Benefit of) provision for income taxes		(17,637	)		(6,580	)		161,268			48,271			—			185,322
Income from continuing operations		315,555			345,262			356,344			25,093			(738,098	)		304,156
Income from discontinued operations, net of income taxes		—			—			—			631			—			631
Net income		315,555			345,262			356,344			25,724			(738,098	)		304,787
Less: Net loss attributable to non-controlling interests		—			—			—			(10,768	)		—			(10,768	)
Net income attributable to CBRE Group, Inc.	$	315,555		$	345,262		$	356,344		$	36,492		$	(738,098	)	$	315,555

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2011

(Dollars in thousands)

	Parent			CBRE			Guarantor Subsidiaries			Nonguarantor Subsidiaries		Elimination			Consolidated Total
Revenue	$	—		$	—		$	3,419,396		$	2,486,015	$	—		$	5,905,411
Costs and expenses:
Cost of services		—			—			2,064,160			1,392,970		—			3,457,130
Operating, administrative and other		41,708			5,331			985,402			850,225		—			1,882,666
Depreciation and amortization		—			—			66,960			48,759		—			115,719
Total costs and expenses		41,708			5,331			3,116,522			2,291,954		—			5,455,515
Gain on disposition of real estate		—			—			3,380			9,586		—			12,966
Operating (loss) income		(41,708	)		(5,331	)		306,254			203,647		—			462,862
Equity income from unconsolidated subsidiaries		—			—			101,625			3,151		—			104,776
Other income		—			—			986			1,720		—			2,706
Interest income		—			105,502			2,990			6,319		(105,368	)		9,443
Interest expense		—			118,650			105,857			31,110		(105,368	)		150,249
Royalty and management service (income) expense		—			—			(35,890	)		35,890		—			—
Income from consolidated subsidiaries		265,344			276,944			74,114			—		(616,402	)		—
Income from continuing operations before (benefit of) provision for income taxes		223,636			258,465			416,002			147,837		(616,402	)		429,538
(Benefit of) provision for income taxes		(15,526	)		(6,879	)		139,058			72,450		—			189,103
Income from continuing operations		239,162			265,344			276,944			75,387		(616,402	)		240,435
Income from discontinued operations, net of income taxes		—			—			—			49,890		—			49,890
Net income		239,162			265,344			276,944			125,277		(616,402	)		290,325
Less: Net income attributable to non-controlling interests		—			—			—			51,163		—			51,163
Net income attributable to CBRE Group, Inc.	$	239,162		$	265,344		$	276,944		$	74,114	$	(616,402	)	$	239,162

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2010

(Dollars in thousands)

	Parent			CBRE			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Elimination			Consolidated Total
Revenue	$	—		$	—		$	2,995,186		$	2,120,130		$	—		$	5,115,316
Costs and expenses:
Cost of services		—			—			1,798,753			1,161,417			—			2,960,170
Operating, administrative and other		44,826			4,462			829,027			729,367			—			1,607,682
Depreciation and amortization		—			—			58,744			49,637			—			108,381
Total costs and expenses		44,826			4,462			2,686,524			1,940,421			—			4,676,233
Gain on disposition of real estate		—			—			3,381			3,915			—			7,296
Operating (loss) income		(44,826	)		(4,462	)		312,043			183,624			—			446,379
Equity income (loss) from unconsolidated subsidiaries		—			—			29,453			(2,892	)		—			26,561
Interest income		—			92,935			2,243			17,052			(103,814	)		8,416
Interest expense		—			148,610			105,490			40,865			(103,814	)		191,151
Write-off of financing costs		—			18,148			—			—			—			18,148
Royalty and management service (income) expense		—			—			(28,485	)		28,485			—			—
Income from consolidated subsidiaries		228,590			277,918			124,349			—			(630,857	)		—
Income from continuing operations before (benefit of) provision for income taxes		183,764			199,633			391,083			128,434			(630,857	)		272,057
(Benefit of) provision for income taxes		(16,581	)		(28,957	)		113,165			62,741			—			130,368
Income from continuing operations		200,345			228,590			277,918			65,693			(630,857	)		141,689
Income from discontinued operations, net of income taxes		—			—			—			14,320			—			14,320
Net income		200,345			228,590			277,918			80,013			(630,857	)		156,009
Less: Net loss attributable to non-controlling interests		—			—			—			(44,336	)		—			(44,336	)
Net income attributable to CBRE Group, Inc.	$	200,345		$	228,590		$	277,918		$	124,349		$	(630,857	)	$	200,345

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2012

(Dollars in thousands)

	Parent		CBRE			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Elimination			Consolidated Total
Net income	$	315,555	$	345,262		$	356,344		$	25,724		$	(738,098	)	$	304,787
Other comprehensive loss:
Foreign currency translation loss		—		—			—			(997	)		—			(997	)
Unrealized losses on interest rate swaps and interest rate caps, net		—		(4,868	)		—			(56	)		—			(4,924	)
Unrealized holding gains (losses) on available for sale securities, net		—		—			522			(47	)		—			475
Pension liability adjustments, net		—		—			—			(947	)		—			(947	)
Other, net		—		—			(871	)		273			—			(598	)
Total other comprehensive loss		—		(4,868	)		(349	)		(1,774	)		—			(6,991	)
Comprehensive income		315,555		340,394			355,995			23,950			(738,098	)		297,796
Less: Comprehensive loss attributable to non-controlling interests		—		—			—			(11,154	)		—			(11,154	)
Comprehensive income attributable to CBRE Group, Inc.	$	315,555	$	340,394		$	355,995		$	35,104		$	(738,098	)	$	308,950

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2011

(Dollars in thousands)

	Parent		CBRE			Guarantor Subsidiaries		Nonguarantor Subsidiaries			Elimination			Consolidated Total
Net income	$	239,162	$	265,344		$	276,944	$	125,277		$	(616,402	)	$	290,325
Other comprehensive (loss) income:
Foreign currency translation loss		—		—			—		(24,165	)		—			(24,165	)
Unrealized losses on interest rate swaps and interest rate caps, net		—		(23,602	)		—		(21	)		—			(23,623	)
Unrealized holding gains on available for sale securities, net		—		—			77		—			—			77
Pension liability adjustments, net		—		—			—		(19,088	)		—			(19,088	)
Other, net		—		—			2,022		—			—			2,022
Total other comprehensive (loss) income		—		(23,602	)		2,099		(43,274	)		—			(64,777	)
Comprehensive income		239,162		241,742			279,043		82,003			(616,402	)		225,548
Less: Comprehensive income attributable to non-controlling interests		—		—			—		50,223			—			50,223
Comprehensive income attributable to CBRE Group, Inc.	$	239,162	$	241,742		$	279,043	$	31,780		$	(616,402	)	$	175,325

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2010

(Dollars in thousands)

	Parent		CBRE		Guarantor Subsidiaries			Nonguarantor Subsidiaries			Elimination			Consolidated Total
Net income	$	200,345	$	228,590	$	277,918		$	80,013		$	(630,857	)	$	156,009
Other comprehensive income:
Foreign currency translation loss		—		—		—			(229	)		—			(229	)
Unrealized gains on interest rate swaps and interest rate caps, net		—		—		—			706			—			706
Unrealized holding gains on available for sale securities, net		—		—		637			—			—			637
Pension liability adjustments, net		—		—		—			17,953			—			17,953
Other, net		—		—		(219	)		1,821			—			1,602
Total other comprehensive income		—		—		418			20,251			—			20,669
Comprehensive income		200,345		228,590		278,336			100,264			(630,857	)		176,678
Less: Comprehensive loss attributable to non-controlling interests		—		—		—			(44,142	)		—			(44,142	)
Comprehensive income attributable to CBRE Group, Inc.	$	200,345	$	228,590	$	278,336		$	144,406		$	(630,857	)	$	220,820

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2012

(Dollars in thousands)

	Parent			CBRE			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Consolidated Total
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	24,525		$	(3,620	)	$	210,921		$	59,255		$	291,081
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—			—			(95,578	)		(54,654	)		(150,232	)
Acquisition of Clarion Real Estate Securities and substantially all of the ING Group N.V. operations in Europe and Asia (collectively the REIM Acquisitions), including net assets acquired, intangibles and goodwill, net of cash acquired		—			—			(8,949	)		1,269			(7,680	)
Acquisition of businesses (other than the REIM Acquisitions), including net assets acquired, intangibles and goodwill, net of cash acquired		—			—			(15,980	)		(28,918	)		(44,898	)
Contributions to unconsolidated subsidiaries		—			—			(29,941	)		(35,499	)		(65,440	)
Distributions from unconsolidated subsidiaries		—			—			58,389			4,588			62,977
Net proceeds from disposition of real estate held for investment		—			—			—			60,805			60,805
Additions to real estate held for investment		—			—			—			(6,181	)		(6,181	)
Proceeds from the sale of servicing rights and other assets		—			—			35,499			4,707			40,206
Increase in restricted cash		—			(2,018	)		(1,693	)		(12,494	)		(16,205	)
Decrease in cash due to deconsolidation of CBRE Clarion U.S., L.P.		—			—			—			(73,187	)		(73,187	)
Other investing activities, net		—			—			2,922			(758	)		2,164
Net cash used in investing activities		—			(2,018	)		(55,331	)		(140,322	)		(197,671	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of senior secured term loans		—			(46,000	)		—			(22,146	)		(68,146	)
Proceeds from revolving credit facility		—			—			—			41,270			41,270
Repayment of revolving credit facility		—			—			—			(15,230	)		(15,230	)
Proceeds from notes payable on real estate held for investment		—			—			—			4,652			4,652
Repayment of notes payable on real estate held for investment		—			—			—			(54,036	)		(54,036	)
Proceeds from notes payable on real estate held for sale and under development		—			—			—			22,276			22,276
Repayment of notes payable on real estate held for sale and under development		—			—			—			(21,345	)		(21,345	)
Proceeds from exercise of stock options		20,324			—			—			—			20,324
Incremental tax benefit from stock options exercised		2,930			—			—			—			2,930
Non-controlling interests contributions		—			—			—			16,075			16,075
Non-controlling interests distributions		—			—			—			(48,162	)		(48,162	)
Payment of financing costs		—			(25	)		—			(334	)		(359	)
(Increase) decrease in intercompany receivables, net		(47,732	)		(228,395	)		175,469			100,658			—
Other financing activities, net		(47	)		—			(953	)		62			(938	)
Net cash (used in) provided by financing activities		(24,525	)		(274,420	)		174,516			23,740			(100,689	)
Effect of currency exchange rate changes on cash and cash equivalents		—			—			—			3,394			3,394
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		—			(280,058	)		330,106			(53,933	)		(3,885	)
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD		5			298,370			375,176			419,631			1,093,182
CASH AND CASH EQUIVALENTS, AT END OF PERIOD	$	5		$	18,312		$	705,282		$	365,698		$	1,089,297
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	—		$	135,257		$	23		$	26,665		$	161,945
Income tax payments, net	$	—		$	—		$	127,482		$	90,474		$	217,956

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2011

(Dollars in thousands)

	Parent			CBRE			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Consolidated Total
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:	$	19,200		$	20,628		$	126,752		$	194,639		$	361,219
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—			—			(111,247	)		(36,733	)		(147,980	)
Acquisition of Clarion Real Estate Securities and substantially all of the ING Group N.V. operations in Europe and Asia (collectively the REIM Acquisitions), including net assets acquired, intangibles and goodwill, net of cash acquired		—			—			(215,910	)		(364,985	)		(580,895	)
Acquisition of businesses (other than the REIM Acquisitions), including net assets acquired, intangibles and goodwill, net of cash acquired		—			—			(2,290	)		(47,500	)		(49,790	)
Contributions to unconsolidated subsidiaries		—			—			(29,912	)		(21,551	)		(51,463	)
Distributions from unconsolidated subsidiaries		—			—			92,611			16,936			109,547
Net proceeds from disposition of real estate held for investment		—			—			—			231,678			231,678
Additions to real estate held for investment		—			—			—			(15,473	)		(15,473	)
Proceeds from the sale of servicing rights and other assets		—			—			26,886			149			27,035
Increase in restricted cash		—			(15	)		(1,213	)		(468	)		(1,696	)
Other investing activities, net		—			—			(1,218	)		—			(1,218	)
Net cash used in investing activities		—			(15	)		(242,293	)		(237,947	)		(480,255	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from senior secured term loans		—			800,000			—			300,739			1,100,739
Repayment of senior secured term loans		—			(42,000	)		—			(5,503	)		(47,503	)
Proceeds from revolving credit facility		—			967,000			—			65,624			1,032,624
Repayment of revolving credit facility		—			(967,000	)		—			(38,132	)		(1,005,132	)
Proceeds from notes payable on real estate held for investment		—			—			—			10,300			10,300
Repayment of notes payable on real estate held for investment		—			—			—			(186,636	)		(186,636	)
Proceeds from notes payable on real estate held for sale and under development		—			—			—			8,454			8,454
Repayment of notes payable on real estate held for sale and under development		—			—			—			(79,271	)		(79,271	)
Proceeds from exercise of stock options		7,136			—			—			—			7,136
Incremental tax benefit from stock options exercised		14,936			—			—			—			14,936
Non-controlling interests contributions		—			—			—			10,231			10,231
Non-controlling interests distributions		—			—			—			(129,686	)		(129,686	)
Payment of financing costs		—			(23,652	)		—			(1,086	)		(24,738	)
(Increase) decrease in intercompany receivables, net		(41,271	)		(680,436	)		393,855			327,852			—
Other financing activities, net		—			—			—			(129	)		(129	)
Net cash (used in) provided by financing activities		(19,199	)		53,912			393,855			282,757			711,325
Effect of currency exchange rate changes on cash and cash equivalents		—			—			—			(5,681	)		(5,681	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		1			74,525			278,314			233,768			586,608
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD		4			223,845			96,862			185,863			506,574
CASH AND CASH EQUIVALENTS, AT END OF PERIOD	$	5		$	298,370		$	375,176		$	419,631		$	1,093,182
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	—		$	109,520		$	24		$	28,491		$	138,035
Income tax payments, net	$	—		$	—		$	102,754		$	87,163		$	189,917

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2010

(Dollars in thousands)

	Parent			CBRE			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Consolidated Total
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:	$	18,844		$	129,388		$	264,826		$	203,529		$	616,587
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—			—			(49,300	)		(19,164	)		(68,464	)
Acquisition of businesses including net assets acquired, intangibles and goodwill		—			—			(2,340	)		(68,050	)		(70,390	)
Contributions to unconsolidated subsidiaries		—			—			(32,915	)		(4,595	)		(37,510	)
Distributions from unconsolidated subsidiaries		—			—			21,164			1,679			22,843
Net proceeds from disposition of real estate held for investment		—			—			—			76,504			76,504
Additions to real estate held for investment		—			—			—			(16,551	)		(16,551	)
Proceeds from the sale of servicing rights and other assets		—			—			27,179			1,765			28,944
Decrease (increase) in restricted cash		—			—			7,783			(3,736	)		4,047
Other investing activities, net		—			—			(1,926	)		—			(1,926	)
Net cash used in investing activities		—			—			(30,355	)		(32,148	)		(62,503	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from senior secured term loans		—			650,000			—			—			650,000
Repayment of senior secured term loan		—			(1,693,110	)		—			—			(1,693,110	)
Proceeds from revolving credit facility		—			83,337			—			23,422			106,759
Repayment of revolving credit facility		—			(83,501	)		—			(27,156	)		(110,657	)
Proceeds from 6.625% senior notes		—			350,000			—			—			350,000
Proceeds from notes payable on real estate held for investment		—			—			—			20,631			20,631
Repayment of notes payable on real estate held for investment		—			—			—			(81,906	)		(81,906	)
Proceeds from notes payable on real estate held for sale and under development		—			—			—			3,671			3,671
Repayment of notes payable on real estate held for sale and under development		—			—			—			(14,341	)		(14,341	)
Repayment of short-term borrowings and other loans, net		—			—			(548	)		(5,500	)		(6,048	)
Proceeds from exercise of stock options		2,401			—			—			—			2,401
Incremental tax benefit from stock options exercised		5,380			—			—			—			5,380
Non-controlling interests contributions		—			—			—			29,172			29,172
Non-controlling interests distributions		—			—			—			(11,406	)		(11,406	)
Payment of financing costs		—			(33,329	)		—			(1,101	)		(34,430	)
(Increase) decrease in intercompany receivables, net		(26,625	)		578,474			(420,312	)		(131,537	)		—
Other financing activities, net		—			—			—			(338	)		(338	)
Net cash used in financing activities		(18,844	)		(148,129	)		(420,860	)		(196,389	)		(784,222	)
Effect of currency exchange rate changes on cash and cash equivalents		—			—			—			(4,845	)		(4,845	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		—			(18,741	)		(186,389	)		(29,853	)		(234,983	)
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD		4			242,586			283,251			215,716			741,557
CASH AND CASH EQUIVALENTS, AT END OF PERIOD	$	4		$	223,845		$	96,862		$	185,863		$	506,574
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest	$	—		$	134,719		$	5		$	34,686		$	169,410
Income tax (refunds) payments, net	$	(11,214	)	$	(108,132	)	$	57,102		$	50,745		$	(11,499	)